New York (CNN Business) The retail apocalypse over the past several years has devastated America's department stores, chains and mom-and-pops. Stores are closing at record levels. The number of people working in retail is on the decline.

And all of that has happened at a time when the economy was strong.

But if the United States slips into a recession, as many economists fear it will sometime next year, the problems plaguing retail could get far worse. Store closings could accelerate and layoffs in the sector — a major provider of American jobs — could spread.

"Brick-and-mortar retailers are already in recession," said Mark Zandi, chief economist for Moody's Analytics. "They've been laying off workers coming up on three years. And this is a time when consumers are out spending aggressively. If the broader economy is in recession, there is going to be blood in the streets."

Forever 21 on Sunday was the latest major retailer to file for bankruptcy. It announced plans to close as many as 178 stores in the United States, about a third of those it operates. Earlier this month, Fred's, a 72-year-old discount chain, said it would close its remaining 300 stores.