5 key reasons behind mass store closures as shutting of Macy's, Joann and Kohl's branches leave 'stain' on US cities

Closing down sales, shuttered shops and news of mass layoffs are becoming common place across the US as retailers struggle to turn a profit.

An expert has now revealed five key reasons stores are closing which has left a 'stain' on US cities.

Earlier this month, the iconic chain Macy's announced that it will be closing 150 branches in the next two years including it's much-loved Philadelphia store. Last month fabric and crafts retailer Joann announced it was going out of business after 80 years. Walgreens, Party City and CVS stores are also victims of this retail 'bloodbath,' but what's behind it?

Speaking to Mirror.com Scott Y. Stuart, the CEO at nonprofit Turnaround Management Association (TMA), explained what's going on behind the scenes amid the closures. The firm he leads is a nonprofit headquartered in Chicago, Illinois, that works with businesses as they restructure.

He outlined key causes, saying: "Retail has always been an area of high volatility where reorganizations, and restructurings are quite common.

"While that changes during different cycles, this one being a post pandemic cycle where the convalescence of a host of factors, including online market place, work from home affecting urban center traffic, commercial real estate costs, and normal pressures effacing consumer spending, and changes in consumer habits, are all at play right now."

Earlier in February, Liberated Brands - which owns Volcom, Billabong, Quiksilver, Spyder, RVCA, Roxy and Honolua - filed for bankruptcy in Delaware, meaning it closing all of its stores across the U.S. The company's chief executive Todd Hymel blamed fast-fashion, ongoing inflationary pressures and high interest rates for the businesses struggles.

The closures have led to what are called 'shopping deserts', areas where residents have limited access to shops. Scott explained: "This has already occurred in parts of the country where the mall culture has largely sunsetted. And yes, continued contraction of brick and mortar retail locations is certain, but at the same time, the re-invention of retail (i.e.-Barnes and Nobel resurgence) will replace some, but not all, of what replaces those retailers that have contracted or gone out of business.

"Like everything else, retail has a life and a look back over 20 years will show dramatic shifts in the retail segment, which is a constant that can be counted on."

Scott used his firm's hometown as an example of the impact. He explained: "Michigan Avenue in Chicago has a high retail vacancy rate, a stain on a major US city that was long the 5th Avenue of the mid-west.

"Fifth Avenue in NYC, or the Las Vegas Strip however, are retail showcases with no real suffrage there. Main Street USA will suffer if major brands vacate and leave, with the question becoming does the future for retail there look to replace lost major retailers with small business retailers instead?"

Unfortunately for the ailing stores, there's no easy answer for their problems. Scott explained: "There is no one size fits all answer as to what can turn around retail woes. Brands like CVS and Walgreens are suffering for much different reasons than Macy’s, Joann and Forever21.

"Each of the retail segments that are in distress are in distress for different reasons and so are the business models and strategic planning that is necessary to turn those respective sectors around, tied to brand power, industry segment, consumer support etc… Thus, what it takes to turn a pharmacy chain around is much different than what it will take to turn around an industry segment that focuses on crafts."