This has been a brutal year for many of America’s major retailers, with some of the biggest names closing a combined 3,000 stores in 2017.
According to new insights from S&P Global Market Intelligence, there have been 14 retail bankruptcies so far this year, which is just four shy of the total for all of 2016.
Companies that have filed for bankruptcy this year include Payless, hhgregg and The Limited.
New report: Retailers most likely to go bankrupt
On the radio show, Clark explained that these retailers are failing because they’re not giving people what they want in terms of things like price, fashion and selection.
As a result, shoppers are increasingly turning to online and discount merchants for better deals.
The reality is that America has been over-stored. We have far too many retail locations, shopping centers and branches of different chains. But stores that are meeting your needs with low prices will continue to thrive.
Which retailers may be the next to go?
Using a statistical model that calculates the probability of default over the next 12 months, S&P Global Market Intelligence has identified the 10 retail companies that are “most vulnerable” right now:
- Sears Holdings Corp. (Sears and Kmart department stores)
- DGSE Companies Inc. (Dallas Gold and Silver Exchange)
- Appliance Recycling Centers of America Inc. (Appliance recycling)
- The Bon-Ton Stores Inc. (Department store chain)
- Bebe Stores Inc. (Women’s apparel)
- Destination XL Group Inc. (Men’s apparel)
- Perfumania Holdings Inc. (Specialty store)
- Fenix Parts Inc. (Auto parts recycling)
- Tailored Brands Inc. (Men’s Wearhouse, K&G, Jos. A Bank)
- Sears Hometown and Outlet Stores Inc. (Sears Hometown and Outlet locations)
One day after these new insights were published, Bebe Stores announced that it was shutting down all of its 180 locations nationwide, but it’s unclear whether the retailer will continue as an online-only merchant.
If you have gift cards to any struggling retailers, Clark suggests that you use them ASAP!