S&P Global Market Intelligence reports that the number of large American retail companies declaring bankruptcy in 2017 may hit 40, up from 18 the prior year.  Firms declaring bankruptcy in 2017 already include RadioShack, Payless Shoesource, The Limited, HHGregg, and Goromans.  Other retail companies closing stores rapidly and possibly heading for bankruptcy include Gymboree, Bebe, Crocs, Gamestop, Sears/Kmart, J.C. Penney, Michael Kors, Staples, Macy’s and Chico’s.  A key problem for retail firms is shoppers’ discount addiction spurred by Amazon’s prowess and also smartphone shopping tools and apps prompting never-ending price-cutting, price matching, and price wars (p. 142a).  The dramatic shift to online purchasing has curtailed the need for brick-and-mortar stores of all kinds.

Source:  Based on Phil Wahba, The Death of Retail is Greatly Exaggerated,” Fortune, June 15, 2017, p. 33-34.