While it may not be the worst time in the world to be a retailer, it certainly isn't the best.
It's probably fair to say that many of us were living in the worst age for retail about five years ago.
Related: Famous retail chain closing more stores amidst chaotic new change
At least as far as recent history is concerned, Covid presented something of an unprecedented disaster for retailers.
As the pandemic swept through the globe, many businesses — both local and multinational — shuttered for some period of time. And some never recovered.
The American Bankruptcy Institute reports that about 60% of businesses that closed during Covid did so permanently. And many more continue to struggle, even if they did make it to the other side of the pandemic.
These numbers present a harsh reality for many retailers.
Even if Covid is behind us, many of our habits have been permanently changed by the global event.
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Consumer habits are swiftly shifting
It may seem like many of our activities are more or less back to normal these days.
We still go out to dinner, see a concert, visit the beach, and travel to new or familiar destinations, and some of us still commute to work every day.
More closings:
- Popular Mexican chain closing all restaurants, no bankruptcy
- Iconic mall chain shuttering more stores forever
- Major gym closing multiple locations after franchisee bankruptcy
- After Chapter 11 bankruptcy, beloved retailer closes all stores
But our daily routines and errands have more or less changed forever.
Fewer of us go to movie theaters to see films, for example. And even fewer of us go to shopping malls for our everyday needs.
Instead, we stream our movies from the comfort of our home, and we shop online for many of our household essentials.
Popular bank closing more branches
The same goes for banking, which fewer of us now do in person.
Instead, many folks choose to carry out their banking needs online or via a mobile app, which offer far more convenient ways to do essential tasks like pay bills, deposit checks, and even apply for loans.
This changing habit, however, has spiraled foot traffic levels ever downward. Which means it no longer makes sense for many banks to keep the lights on for a dwindling crowd.
Related: Forget Rite Aid, another struggling drugstore closing down stores
So Santander (SAN) has made the difficult decision to shutter 95 bank branches across the UK and Scotland.
Santander, which is based out of Spain but has locations around the globe, has seen its e-commerce traffic skyrocket upward; digital transactions are up 63% compared to 2019.
Conversely, in-person transactions are down by 61%.
This comes after Santander announced it would shutter nearly 20 locations in the U.S., with most closing branches clustered around New England.
“Santander Bank continues to refine its branch footprint and retail presence, including introducing new formats and investing in digital capabilities to better accommodate our customers and meet their evolving needs,” a Santander spokesperson said of the closures.
