What: Between 40,000 and 50,000 shops could be shuttered over the next five years.

Why is it important: The outlook is slightly better than during the pandemic when 80,000 stores were expected to close, but the high number of retail closures is primarily expected to hit the fashion and accessories industry, which will see nearly half of all closures, in addition to home furnishings and electronics store closures.

Business is expected to boom for general merchandise stores such as Target and Walmart. However, brick-and-mortar shops have served a critical role for retailers during the Covid pandemic, and retail sales growth has remained strong. This all promises well for the future of physical stores.

Traditional shopping malls remain at higher risk for closures than neighborhood strip centers due to shoppers’ increased preference to shop locally.

50,000 U.S. retail stores to close in the next five years