Bankruptcies among U.S. retailers reached a six-year high in 2017 amid declining foot traffic and the rise of e-commerce giants like Amazon, FoxBusiness.com reported. Some 50 retailers filed for bankruptcy this year, including one-time giants like Toys R Us, RadioShack and Payless. That’s the highest number of bankruptcies since 2011, when 59 companies filed for the protection, according to data from S&P Global. Mall-based stores and so-called “big-box” stores have been most affected by the retail crisis. Big-box stores like Macy’s and Sears accounted for 43 percent, or about 43 million square feet of shuttered U.S. retail space in 2017, Axios reported, citing data from real estate research firm CoStar. Of the 50 retail bankruptcies, some 21 occurred at major retailers. Other companies to file include Wet Seal, Hhgregg, Rue21, Gymboree, True Religion and Vitamin World. Read more.
In related news, Fueled by high consumer confidence and a robust job market, U.S. retail sales in the holiday period rose at their best pace since 2011, according to Mastercard SpendingPulse, which tracks both online and in-store spending, the Wall Street Journal reported. Sales, excluding automobiles, rose 4.9 percent from Nov. 1 through Christmas Eve, compared with a 3.7 percent gain in the same period last year, according to the Mastercard Inc. unit, which tracks all forms of payment. E-commerce continued to drive the gains, rising 18.1 percent. Read more. (Subscription required.)
