The Retail Apocalypse

By Lily McDonough '22

February 2020

Throughout the past several years, even while the economy was growing strong, retail jobs have been declining as records were being made of the amount of retail stores closing. Some economists believe that the United States could be going into recession by next year, causing layoffs and loss of jobs for retailers. Stores such as Payless have already closed due to bankruptcy, and Forever 21 stores across the United States will be closing because of bankruptcy. In addition to stores closing, the United States could cause the prices of consumer goods to rise if a trade war would occur with China, making it harder for people to buy goods from retailers. A survey taken by Duke University stated that “two-thirds of chief financial officers expect a recession by the end of 2020”. Greg Portell, a retail practice and global consumer lead partner, stated: “If the economy were to struggle, it would accelerate the collapse of a lot more of the debt financed retailers. And you would see an acceleration in store closures.” Since 2017, 200,000 jobs in retailing have been lost in both clothing and department stores over the years. If the economy would go into a recession, it would be harder for laid off workers to find jobs if unemployment rises. Economists believe that the United States economy could go into recession, causing layoffs and unemployment for retailers.