The Real Reason So Many Stores Are Closing

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Excuse me while I step outside of my normal role in this space of focusing solely on the net lease market. Because there is a dynamic impacting all of retail—the general market as well as net leased retail—that needs to be addressed, namely, the myth of a retail apocalypse.

We have heard for years now about the death of brick-and-mortar retail at the hands—or is that the thumbs—of e-commerce. Indeed, according to Business Insider, some 1700 stores are expected to shutter this year. A short list would include Pier 1, which expects to close 450 units; the Gap, which will click off the lights in 230 stores; ditto Chico’s, at 200 of its properties; and Forever 21, which will close 178 stores. This data was also brought out in a recent webinar conducted by the Institute of Real Estate Management on Trends for 2020.