Retail apocalypse

The retail apocalypse (also known as retailpocalypse) is the closing of numerous Northern American brick and mortarretail stores, especially those of large chains, starting in the 2010s. The 2020s saw more store closures as a result of COVID-19 lockdowns with customers using online shopping as an alternative way to shop.

In 2017 alone, more than 12,000 physical stores closed. The reasons included debt and bankruptcy in the face of rising costs, leveraged buyouts, low quarterly profits outside holiday binge spending, delayed effects of the Great Recession, and changes in spending habits. American consumers have shifted their purchasing habits due to various factors, including experience spending versus material goods and homes, casual fashion in relaxed dress codes, as well as the rise of e-commerce and particularly juggernaut companies such as Amazon.com, Target, and Walmart. A 2017 Business Insider report dubbed this phenomenon the "Amazon effect" and calculated that Amazon.com was generating more than half of retail-sales growth.

Not everyone agrees that a "retail apocalypse" exists. Dissenting economists and experts asserted that recent retail closures are a market correction, suggesting that the phrase is misleading and instills insecurity in the 16 million U.S. retail workers. Research published by global retail analyst IHL Group in 2019 suggests that the so-called retail apocalypse narrative was an exaggeration, with "more chains that are expanding their number of stores than closing stores." That year, retailers in the United States announced 9,302 store closings, a 59% jump from 2018, and the highest number since tracking the data began in 2012.

Corporate bankruptcies and store closings increased in 2020. During the COVID-19 pandemic, most retail stores, especially struggling mall-based retailers, closed for extended periods. Several large retail companies filed for bankruptcy during the pandemic, including J. Crew, Century 21, Neiman Marcus, Lord & Taylor, Nordstrom, Macy's, Stage Stores, Stein Mart, JCPenney, Tuesday Morning, and Pier 1 Imports.

The most productive retailers in North America during the retail apocalypse are discount superstores Walmart and Target, low-cost "fast-fashion" brands (Zara, H&M), dollar stores (Dollar General, Dollar Tree, Family Dollar, Dollarama), and warehouse clubs (Costco, Sam's Club, and BJ's Wholesale Club).

A major consequence of the retail apocalypse has been the increase in vacant retail space, such as big-box stores, strip malls and shopping malls—with the latter becoming dead malls due to declining consumer traffic and store closures. Such vacant real estate, in turn, has become the site for pop-up retail stores—a notable example being Spirit Halloween, a seasonal retailer which sells Halloween merchandise and has set up stores at vacant retail buildings, including former big-box stores.