Pressure from Shin, Timo accelerate the closure of the retail sale

Continuous increase from Retail closure in the United States It is expected to continue in 2025, when old companies face unrelenting competition from the e -commerce platforms of Shin and Timo.

Coreight Breath, a retail and technology company, estimates that closing operations will rise to 15,000 in 2025. The company also offers about 5,800 stores in the country this year, but leads to a net loss.

With a wave of bankruptcy The closure in 2024 was announced by major brands such as Big Lots and Party City and recent ads from Kohl’s and Macey that extend to 2025, Coresight Research estimated that more than 1900 stores are expected by the second week of 2025.

To put this in its right quorum, 7,323 stores were closed in 2024, which represents the largest number of closures since 2020, when nearly 10,000 stores were closed, according to Coresight Research.

It was approximately 60 % compared to the same period of 52 weeks in 2023.

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John Mercer, President of Global Research in Coresight, told Fox Business that the same issues that industry suffers in 2024 will continue, “specifically competitive pressure” from the rapid fashion platforms that have risen Inflationary consumers It took advantage of its cheap prices.

Shein and TEMU offers a range of products and clothes at low prices. Companies face criticism on work practices, environmental concerns, and work ethics such as violation of intellectual property.

However, people continue to shop on platforms, which makes them threaten retailers in the United States.

“We believe that Timo and Shein together around the world are a $ 100 billion threat to retailers,” Mercer said. “We believe that they achieved about $ 100 billion in global sales last year. The vast majority of this will be peeled from retailers of judges … taking sales, and the share in the market at its expense,” Mercer continued.

Coresight believes that “the threat from Temu and Shein is a pressure recognized by many retailers” and that “there is no little possibility to relieve this competitive pressure,” according to Mercer.

Another factor that contributes to their estimation is the coming period of “disrupting policy”, according to Mercer.

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“We are not sure after it will happen with the customs tariff. We are not sure how the customs tariff flowed to the costs of retailers and internal consumers and how consumers’ reaction to this will be,” he said.

Mercer said that the danger with the definitions is that “you end up with escalating inflation.”

“We have seen the reaction of consumers in the United States the last time to increase inflation. The risks are that we are getting more inflation and response to consumers again,” he added.

Positive trends in consumer morale standards in Coresight Research and optimistic macroeconomic indicators indicate that the demand for consumer can be reasonably strong, according to Mercer. But even if the demand is strong, “the danger of old retailers is that, as I mentioned, the request of consumers, is increasingly going to newer players.”

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Dibora Winasgoug, CEO of Coresight Research, said in a statement that inflation, along with “an increasing preference between Consumers for online shopping To find the cheapest deals “affected many bricks and mortar retailers last year.

Several brands have fallen victim, including American shippingAnd, which announced that it closed all its 329 sites as part of the bankruptcy procedures of its mother company, and made a lot Chapter 11 bankruptcy Protection in September to help facilitate the sale of “everything” from its origins to “Nexus Capital Management”. It also announced plans to permanently close dozens of stores.

MAKY’s has also started to close sites as part of a transformation strategy announced in February 2024. It is the CEO, Tony Spring, told analysts during a recent profit call. The company is now expecting to close about 65 sites this year, up from its previous forecast for 50 at the beginning of the year.

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Party City, which includes 738 expected closure, and Big Lots, which includes about 661 expected closures, celebrates the closing package so far this year. 7-Eleven is not far from 333 expected closure.

Coresight also follows the expected closure of Aldi, CVS Health, Dollar General, Dollar Tree, Family Dollaar, five, JD SPORTS, Kohl’s, MACY’s, Tjx Companies, Walgreens Boots Alliance.

However, the majority of the aforementioned companies simultaneously open sites throughout the year.

Mercer said it is important to realize that there are three categories of retail closing activity. In one case, retailers may close all stores because they are liquidating their assets. There are also grievous traders who restructure and close large areas of stores, but not all of them.

The third type of closure is when old retailers realize that they need to reshape their property to better meet the needs of consumer preferences.