Brick-and-mortar stores have been facing various difficulties ever since the boom of the e-commerce industry. A lot of national and international brands have decided to close down fairly recently. In fact, the rates of businesses closing down are unprecedented. Let us see if your favorite store survived…
Payless ShoeSource has one of the highest number of store closures among the companies on the list. It plans to shut down more than 2,500 stores! Clearance sales are now going on to liquidate and clear stocks. Some stores remained open until May, but many closed down by March.
Gymboree Group Inc. is a children’s clothing retailer that applied for bankruptcy in January. They also said that they wanted to shut down around 800 Gymboree and Crazy 8 stores in North America! It has stopped taking in online transactions as they hold liquidation sales in stores that are still open. It was the second time they filed for bankruptcy in the span of 2 years.
In March, Charlotte Russe confirmed that it was going to close down. The chain had more than 500 stores across the country! Earlier, the company said it planned to close 94 stores. The rest of the stores shut down by April 30. Some stores are still having liquidation sales, so you can still buy products there.
Family Dollar is a discount retailer that plans to close about 390 stores this year. This means clients now have to look for other places to get their cheap products from! However, the company wants to rename 200 of its branches. Do you think they will start charging more than $1?
Shopko wanted to close about 70 percent of stores by May. They changed the announcement to say that all stores would be closing for good. They applied for bankruptcy in January, although it still held out hope for a buyer. Sadly, that did not happen, which forced them to liquidate and close stores by June.
Gap, Inc. plans to shut down around 230 stores, which is about half of its total locations. The company plans to revamp Old Navy instead since it is doing far better than other in-house brands like Gap and Banana Republic. The parent company has been renamed to NewCo.
Will H&M still be a mall staple after the end of the year? The Swedish retailer plans to close 160 locations to optimize business operations. This happened after it struggled across the country. The company wants to open 355 new stores all over the globe this year but not in Europe and the U.S.
Starbucks said it was going to close 150 underperforming stores this year. This is thrice the typical number shut down each fiscal year! It will happen to avoid stores that compete with a different branch.
The Children’s Place
The Children’s Place previously said it wanted to close 300 underperforming stores by 2020. According to Forbes, it had already shut down 191 stores before the end of 2018! Recently, it has been investing money to boost its online presence in the hopes of improving things.
Cyclists, we have bad news. Performance Bicycle has shut down for good. Every single one of its 104 stores has closed, the very last one just this March 2. The parent company Advanced Sports Enterprises filed for bankruptcy last fall. It hoped to save the others by renegotiating leases, but it did not pan out.
Sears Holdings, the owner of Kmart and the namesake store, planned to shut down 89 stores by March. The stores were spread out across the country, although Texas and Florida got hit the hardest by this.
Vera Bradley has decided to focus on licensing over physical stores! The brand hopes to sell home merchandise through retail chains such as Bed Bath and Beyond and Macy’s instead. By 2021, it is the goal of the company to shut down up to 50 stores since that is when many of the leases expire.
Abercrombie & Fitch
Abercrombie & Fitch announced that it will be shuttering 40 stores by the following February. This is even higher than the stores they closed down in 2018! Business Insider covered that the company spokesman said the company will be investing in the remaining locations by “delivering approximately 85 new experiences, including 40 new stores, with continued reduction in overall square footage.”
Christopher & Banks
In 2018, Christopher & Banks revealed plans to close 30 to 40 stores over the next two years. However, it does not mean that its sales are in bad shape. In fact, they saw an increase in online sales!
Victoria’s Secret closed 30 stores in 2018. This year, the number is higher than that. L Brand, its parent company, said that it is closing 53 more locations. That’s barely a dent in their 1,143 stores worldwide!
Henri Bendel will close down all 24 stores across the country in early 2020. L Brands, its parent company, announced this plan during fall last year. The company wanted to focus on Victoria’s Secret and Bath & Body Works instead.
Over the next three years, Chico’s FAS plans to close 250 stores under the following lines: Chico’s, Soma, and White House Black Market. However, it has not confirmed which locations they plan to shut down.
Like other businesses, this cosmetic line also plans to close physical stores and channel its attention on online sales instead. The beauty brand closed 22 stores by the end of March. Patrons do not need to worry since they can still buy the products through drugstores and the official website.
J.C. Penny has been a mall staple for years, but it has suffered low sales over the last few months. After a dry spell during the holidays and a stock value decline, the company announced that it was shuttering 18 department stores this year. It also plans to shut down 9 furniture stores.
Z Gallerie is an upscale home furniture company that filed for bankruptcy fairly recently. It planned to find a buyer that can help save it without going through liquidation! It plans to shut down 17 stores, which is about 20 percent of its stores across the country.
Destination Maternity Corp. plans to cut down on retail presence and boost e-commerce sales instead. It plans to close about 42 to 67 stores this year. This move will hopefully reduce store expenses. USA Today said it plans to open smaller stores “with reduced square footage to drive higher productivity.”
In 2018, Beauty Brands said that it wants to shutter 25 locations. The company did not only reduce corporate staff but also filed for bankruptcy. It said that increasing operating cost was hard for “a predominantly brick and mortar retailer.”
Things Remembered filed for bankruptcy in February but Enesco LLC purchased 176 locations! However, it only saved a tiny part of the company since it had 450 stores before the bankruptcy filing. C’est la vie.
Ascena Retail is the mother company of Ann Taylor, Lane Bryant, Loft, Dress Barn, and more. The total sales have declined recently. The company wants to shut down hundreds of stores to make up for the loses. Nearly 667 locations will cease operations.
Supermarkets are not safe from challenges either. Southeastern Grocers, the parent company of Bi-Lo, Winn-Dixie, and Harveys, said it was shutting down 22 stores by March 25. This decision happened less than one year after its recovery from a bankruptcy filing. Bi-Lo suffered the most as 13 locations closed.
Lord & Taylor
The flagship store of Lord & Taylor had been in business for over 100 years when it shut down. Ten more locations are due to close this year, although they have yet to announce which ones they are letting go.
Foot Locker Inc. announced its plans to close 167 stores. After this, it wants to invest in the remaining stores and spend millions in the process to improve profit margins. Shareholders were pleasantly surprised to see an improved performance during the final quarter of the previous year.
Macy’s shut down 8 stores earlier this year. These closures are only part of the series of closures they announced several years ago. The plan will affect the following states: California, Indiana, New York, Virginia, Massachusetts, Washington, and Wyoming.
J. Crew often makes headlines these days. After losing its CEO last year, will begin 2020 by closing 6 stores in January. The long-term plan was to shut down 30 stores! The public learned of the plan by summer last year. However, it is still unknown how many locations they plan to shutter.
This year, Kohl’s wants to close four stores located in or around malls. The company said these were “lower performing” stores. The employees previously assigned here got severance pay or were located to other shops. However, it seems like it was a prevention measure than an urgent need since the company wants to open four smaller shops!
Michelle Obama is a big fan J. Crew, which planning to shut down locations. Its sales have gone down recently. According to former CEO Mickey Drexler, the company is in hot water because it raised prices.
99 Cents Only
99 Cents Only sells all kinds of things at discounted prices. In December 2017, it was reported that the company had a $27.1 million net loss on top of its loss of $42.4 million during Q1 and Q2. Ares Management bought the company before it was acquired by Canada Pension Plan and then by a private family. CEO Jack Sinclair reported positive same-store sales, although things are still going downhill.
GNC sells nutrition and health products that saw a gross revenue decline of 3.4% in 2017. It has debt worth billions and a decline in top-line sales, which must be why it decided to look somewhere else instead. It has a strong market there, so it sold 40% of shares to a pharma company in China.
Fred’s Pharmacy wanted to increase the number of its stores in the U.S. from 600 to 1,000. This plan never materialized because gross sales went down to 4.3%, while the bottom line was said to be $139.3 million. In 2018, the CFO left and got replaced by a media exec. The company sold CVS for $40 million.
Stein Mart is a Jacksonville-based discounted department store. It has not been doing very well lately. Even though it balanced their sales and improved their digital revenue, it still suffered a $23.4 million bottom-line loss in 2017.
Office Depot has suffered a 7% loss in sales in 2017. CEO Gerry Smith announced that it will start to provide services as well. This is meant to improve the top-line sales. One such service is the subscription program called “BizBox”.
Vitamin Shoppe improved its e-commerce business and set up a subscription service to deal with issues. In 2018, its top-line sales saw a drop of 8.5%. The decreasing popularity of shopping malls and the rise of similar companies are the reasons Vitamin Shoppe is faring horribly right now. The company wants to improve things by launching delivery services, doing marketing events, and expanding their categories.
In 2017, Neiman Marcus experienced a 5% decline in its top-line sales. Suggested strategies were to cut out 200 jobs and make a “Digital First” customer engagement plan. Hudson’s Bay had been in talks to acquire this high-end retailer, although this plan did not materialize.
Bebe started to go downhill when Neda Mashouf, the creative director, divorced founder Manny Mashouf and left the company. With the current decline of mall culture, the company has been dealing with a number of problems. In 2018, it suffered an operating loss of $4.6 million. The company also paid $65 million to close retail stores and channel its attention on e-commerce instead.
Pier 1 Imports
During Q1 of 2018, Pier 1 Imports experienced a decline of 9.2% in terms of net sales. Aside from that, S&P Global analysts downgraded its credit rating. It has been in even hotter water when President Trump placed a 10% tariff on Chinese goods since more than half of its products come from China.
Lands’ End has been having a tough time staying relevant. It seems like the problems can be traced to its association with Sears Holdings! Even though its catalog item sales are going strong, previous CEO Federica Marchionni made a number of mistakes during her term.
Guitar Center has been here for more than five decades now, but could it be that people are buying fewer guitars now? It had been given a year to pay its $900 billion debt, which led to a 36% decline in sales from 2005 to 2016. Even though it is facing certain issues, it still wants to launch new stores.
Thanks to its $1.5 billion debt, Nine West plans to restructure by filing for bankruptcy and selling parts. It decided to sell off Easy Spirit and only left 25 stores open. This shoe line also decided it will focus more on jewelry and clothing lines such as Anne Klein, One Jeanswear Group, and Kasper Group.
It seems like fancy gowns and expensive weddings are no longer popular in this day and age. People now prefer casual and cheaper events! David’s Bridal is not equipped to deal with this change. The brand has seen a rapid sales decline. On top of this, it has a loan of $520 million due this year. Next year, it is due to pay unsecured notes worth $270 million!
Bon-Ton is an online retailer and department store that opened 100 years ago. In 2018, it filed for bankruptcy, was sold, and got liquidated. In 2018, it reopened for ecommerce and relaunched some stores. The company became big since it operated in small towns with no competition until Amazon.
Tops Market is an East Coast grocery chain. We are sad to report that it filed for bankruptcy since it could not keep up with the changing interest of its consumers! You are still in luck if you live in New York, Vermont, and Pennsylvania. Most stores in these places will stay open, after all.
Cole Haan used to be owned by Nike. In 2018, USA Today said it was one of the most at-risk companies! The footwear line started to shift from dress shoes to athletic shoes, a move that backfired. In 2013, it was bought out by Apax Partners, so it had to compete with its former parent company!
Claire’s was first founded in 1961. The accessories store was a hit among young American girls. In 2018, the company ceased IPO and applied for bankruptcy protection. By May 2018, more than 130 Claire’s locations have been shut down. The others then went to investors and buyers.
FullBeauty Brands Holdings Corp
FullBeauty Brands Holding Corp is a company that owns plus-size brands for men and women. Some labels under it are Jessica London, Woman Within, ellos, fullbeauty.com, Brylane Home, Roaman’s, and KingSize. It also blames Amazon for the terrible sales, which saw a decline of 30% during Q1 of 2017.
Eddie Bauer is an outdoors company that returned from its 2009 bankruptcy. What’s next for it? Well, S&P Global downgraded its credit ranking after it failed to keep up with the times. There is a good chance it will merge with Pacific Sunwear soon.
Bluestem Brands is an apparel, appliance, beauty, electronics, and health product retailer that owns 13 e-commerce sites. Some of these sites are Appleseed’s, Fingerhut, Fair, Bedford, Draper’s & Damon’s, and Gettingon.com. We hope that they can do something about their situation soon!
PetSmart Inc. is a pet product retailer that has more than 1,500 stores across North America. Its $8 million debt has been attributed to competition from Amazon. It finally bought an e-commerce site, but Chewy set it back by $3.35 billion! Whoa. That is the most expensive e-commerce site ever.
BKH Acquisition Corp.
BKH Acquisition Corp. operates more than 100 Burger King joints in Puerto Rico. However, it got placed on the Distressed Company Alert list! The current crisis happened due to an ongoing credit issue. The economic situation in the country did not help either.
This mattress store filed for Chapter 11 bankruptcy protection. One of the reasons behind this was an accounting scandal. The company announced that it will place 700 locations up for sale! It hopes to get out of expensive leases and then undergo restructuring.
National Stores owns Anna’s Linens, Conway, and Fallas. It filed for Chapter 11 bankruptcy protection. More than 74 stores across the United States and Puerto Rico will cease operations soon. National Stores racked up debt when it acquired a lot of brands recently.
Lowe’s is a home and garden retailer. Around 51 underperforming stores had already gotten the ax this year. Before 2018 ended, Lowe’s announced the plans it had. It aimed to finish the closures by 2020. It happened after Marvin R. Ellison took over the company after Robert Niblock retired.