The number of total business closures in the United States dropped in July 2020 — but the figure remains high, with more than 132,500 closures so far this year. Of that amount, 15,742 businesses permanently closed since mid-June. Data from Yelp shows that the restaurant industry had the highest number of closures in July, surpassing the retail industry.
Most of these closures are occurring in large cities — Los Angeles and New York City had the largest amounts of business closures. Similarly, large U.S. states such as California (29,351 closed businesses), Texas (11,118 closed businesses) and New York (8,731 closed businesses) all experienced a large number of closures since the start of the pandemic. Many of these cities and states have been major hot spots during the pandemic.
As businesses start to reopen, and consumers test their comfort levels, recreational activity is expected to grow and help bounce back struggling industries. However, cases continue to rise in certain parts of the U.S., causing consumer interest and business closures to continue to move at an unpredictable pace.