The Minuteman

The Official Newark Academy Newspaper

Bankrupt Big Box Stores

By  Lily Sternlieb ‘24, Feature Writer

For me, there’s nothing more nostalgic than malls: the candy dispensers in the corner with discoloured gumballs, the semi-functional coin-operated kids’ rides, and, most of all, the retail stores. While any of us associate these places to countless childhood memories and emotions, most recently brick and mortar stores have become synonymous with bankruptcy and liquidation. 

For years, retail stores in the United States have been struggling to stay afloat amidst the popularization of online shopping. Customers find new websites with wider selections more appealing than browsing the clothing racks at a local brick and mortar store. This shift to shopping digitally led to almost 5,800 retail locations closing in 2018 and 10,000 closings in 2019. The century-old company JCPenney is an example of a weakened retailer, losing billions of dollars and hundreds of stores in the 2010s. Sears, once the country’s most prominent retail company, filed for bankruptcy in 2018, citing issues with online competition. Many retail companies were slowly disintegrating under the pressure of online competitors. 

This process has rapidly accelerated because of the coronavirus. As many as 25,000 retail stores closed during 2020, and dozens of well-known companies such as Bed Bath & Beyond, Brooks Brothers and GameStop filed for bankruptcy. Due to coronavirus, the trends developing in online retail have only heightened as shoppers seek the comfort, safety and convenience of their computer screens. Companies already strained by debt and cash flow have collapsed under COVID-19 restrictions and lack of consumer demand. David Berliner, the head of restructuring at the international consulting network BDO Global, said about retail stores: “You’re noticing national brands and other prominent franchises that had hundreds of stores, now being liquidated or going through a restructure to salvage what they can.” Companies previously considered to be titans in their respective industries have succumbed to the global virus. The CEO of the Turnaround Management Association, a non-profit organization that specializes in corporate restructuring, said, “I believe the retail sector is in a time of soul-searching and reckoning, understanding that what was, is likely gone forever.”

As these companies have closed and liquidated, their remnants still litter our towns and cities in the form of empty shells of department and clothing stores. However, these places now serve a new purpose: administering COVID-19 vaccinations. All around the country, vacant stores formerly belonging to brick and mortar companies are being used to immunize Americans. In Burlington County, NJ, an abandoned Lord & Taylor was converted into one of six state vaccination megasites. Within a week, empty clothing racks were discarded and replaced with 20 vaccination stations, and equipment to store COVID-19 vaccines. Not only are former department stores large, but also very well-located. The Lord & Taylor is between four major highways, making the location accessible and convenient. Another store being used to vaccinate New Jersey citizens is only a minute away from Newark Academy. The empty Sears in the Livingston Mall has been able to hold 2,400 people per day for vaccinations and is a primary megasite for Essex County. 

While it is true that the retail industry will be forever changed by online shopping and the Coronavirus, its remnants are being used to fulfill another purpose. However, in an odd way, COVID vaccination sites have continued the legacy of brick and mortar stores: to provide people an environment in which they can feel safe and to supply the goods that can ease those people’s lives.