The commercial real estate collapse has pushed countless retail chains over the edge throughout the past few years, but ever since the health crisis struck, we have seen big retailers that once seemed too big to fail going bankrupt and shutting down their entire operations overnight. Last year, we witnessed the closure of thousands of retail stores all across the country, and the trend is expected to continue in 2021, as several iconic brands already announced they will be closing hundreds of stores just on the first quarter, with many more to come as consumers are increasingly turning to online shopping.
The reopening scheduled to happen later this year will finally allow us to see how the devastating effects of the recession have emptied out our economic landscape, and the gap created by so many closures is putting the existence of shopping malls at risk According to experts, 25% of all U.S. shopping malls are forecasted to disappear until 2022, adding extra pressure to the commercial real estate collapse and possibly contributing to trigger another massive wave of lay-offs. That’s what we are going to investigate in this video.
As e-commerce has been significantly rising, brick-and-mortar retail stores were being wiped out by the thousands every year, particularly those belonging to huge retail chains like Sears and J.C. Penney. Before the health crisis exploded in America, the widespread decay of the retail sector had been prompted by a variety of different factors, including market saturation and the shrinking of the middle class, as our living conditions have considerably deteriorated over the last decade.