20 Facts About The Great U.S. Retail Apocalypse That Will Blow Your Mind

The U.S. retail apocalypse is a slow-motion disaster that never seems to end. While several brands spent decades building their businesses, attracting their base of customers, investing in real estate space, and perfecting their products to become respected household names, the advent of e-commerce changed the entire game in just a few years, and everything businesses thought they knew was put into question as they rushed to adapt to a new market that moved much faster and where shoppers had significantly more choices. The after-effects of the financial crisis led to several waves of mass layoffs and store closings that left many companies standing on very thin ice, and the stock market volatility that followed ended the journey of many retailers that were on our landscape for over a century. In 2017, the period commonly known as the start of this whole process, over 9,000 stores were permanently shut down as foot traffic at shopping malls drastically declined. But the truth is that this crisis had been developing for nearly fifteen years before the industry finally reached its breaking point. 
Since then, thousands of popular brands have filed for bankruptcy and gone out of business, and for the first time in history, shopping malls actually faced the threat of extinction. One thing all retail experts note is the fact that neither the rise of online shopping platforms nor the financial turbulence that marked this period can completely explain why so many successful businesses failed almost overnight. One of the most notable trends driving the downfall of retailers is the steady decline of the U.S. middle class. Since the year 2000, it is estimated that U.S. middle-class Americans lost 35% of their purchasing power, with 5% of that loss happening over the last two years. From that period to this day, almost 22 million workers have fallen out of the middle class given that wages stagnated but the cost of living has increased by almost 4.5 times only in the past decade.
Of course, the advent of the pandemic caused even more damage to the retail industry and this income group. In fact, this holiday season is the first in nearly 14 years where businesses in all categories saw sales contracting instead of rising. The troubles faced by retailers were exposed and aggravated by the effects of the health-crisis-induced downturn, and after things started falling apart, one problem led to another and another and another, creating a downward spiral that companies are making this scenario even scarier for many businesses up until this day.
With mass layoffs being announced on a weekly basis, businesses facing the tighter credit conditions in decades, and consumers rolling back their spending amid rising living expenses, it's safe to say that a series of disappointing corporate earings results is coming next, and with it more announcements of store shutdowns and bankruptcy fillings are likely to arise. A lot is at stake still, and we will watch many more developments in 2023 as we head towards another economic recession, but today, we decided to gather 20 surprising facts about the U.S. retail apocalypse that many of you out there may not know yet.

[mammajamma]

I was in college in 2000, and in my business class (I wasn't a business major), I wrote a paper about how malls were useless since we could shop online, and suggested that all retailers focus on their online presence. If a 20 year old saw this coming 22 years ago, why are serious adults surprised now?

[summersky]

Growing up, you'd be nuts going to a mall at this time of year. Yet this year, as I began my Christmas shopping on the 24th, it was no busier than any other day. Was done in 40 min.

[puravida]

The numbers are staggering! I now live in Costa Rica, and am of means. I live well below my means, because Costa Rica has taught me a life lesson, "the difference between need and want." Once you disconnect from the consumer purchasing brainwashing, things are put into perspective.

[bootlegpl]

Just paid off my car yesterday. I just wanted to be free. If a new system takes over debt all I got is my mortgage left.

[ayeflippum]

Shopping malls haven't always existed. The world can survive without them.

[thehonorablejiveturkeyspoo]

I am a member of the declining middle class and I am pissed to high holy at this financial slaughter on America

[Orecatmeatprocessors]

I'm older and a retired 4-year college graduate. I buy everything I can at Value Village a used clothing, etc. store. I have no pride if it fits and I like it well, I buy it!

[martynbush]

I'm watching this on Christmas eve in England. Not the best way to get in the festive mood ready for Christmas!

[laurawachler]

Simple solution for Mall closures: turn the mall into housing with shopping amenities. Srsly, this should have been the plan all along.

[Fore_Runner]

I mostly eat beans and tortillas. I’m happy with that. Maybe some cheese or hot sauce helps but I’m good.

[jamesnolan]

This has been obvious for years. Stores are sadly gone.

[mattbranham]

And yet, the govt keeps spending our 💰

[jimsutherland]

We have al been living far beyond our means for a long time Now is the time for a reality check

[tedb]

I paid cash for everything I have, never had a credit card, only debit cards. What vehicle's I bought with cash, I drove until they weren't worth fixing anymore.

[Ophiuchus]

Best voice on the internet. This guy is a master.

[jennifersmall]

All these high end malls look the same all over the world - maybe because they are the same!

[GreenTeaMe]

You give good information. Please include something encouraging. The videos have a "end of the world" vibe with a lot of fear thrown in. Fear is a great motivator but so is excitement and hope.

[AlexSmith-lntv]

Maybe Zelensky should start buying his green military clothes from US clothing shops. That would surely help 🙏

[elnegro]

People that get mad because of the suppose repetitive headlines will wish they listen. Its not that every product or produce will dissapear but whatever is left will be out of price. Today I went to the mall and I can't believe a freaking body mist from pink cost freaking $19. The system is broken fellas. Brace for a bag of 20lbs of rice for $80 if u can get ur hands on it

[virginiamontoya]

I wonder we're not facing a recession emerging Great Depression blooming large it when I worried about watch businesses laying off tens of thousands or more that's so similar what happened to the Great Depression