In this day and age, e-commerce is turning up a bigger profit than ever. Brick-and-mortar shops continue to struggle against the convenience of these online giants, which has led to the closure of even the biggest international brands and departments stores. In the past couple of years, these retailers have shuttered an unbelievable number of locations. In 2019, this trend is expected to keep going. No industry is safe as home goods, clothing, and electronics stores have all been affected. Find out if your favorite businesses are shutting down any or all of their stores before the end of the year!
Among all the stores we are going to talk about, Payless ShoeSource has the biggest number of closings of all retailers closing down locations this year. At the moment, they are shuttering over 2,500 stores that are holding liquidation sales to do away with their merchandise. Even though they are keeping some of the locations open throughout the month of May, others have closed as early as March. Feel free to go to the sales as you will surely find a pair to take home with you.
In January, Children’s clothing giant Gymboree Group Inc. filed for Chapter 11 bankruptcy protection. They also announced that they plan to close down about 800 Crazy 8 and Gymboree stores across North America. The company has even stopped processing online sales, but liquidation sales continue to happen in the stores. This is not the first time the Gymboree went and filed for bankruptcy. They already shut down a number of stores back in 2017.
This March, Charlotte Russe has verified claims that the entire chain, which boasts of over 500 stores nationwide, will close down. Although many already know that they had 94 stores closing from a closure announcement before this one, many remaining locations are due to close by April 30. They no longer accept online sales, but customers were given the opportunity to take advantage of their in-store liquidation sales at different locations.
Unfortunately, Family Dollar is yet another company that may no longer be around in the future. The discount retailer has announced that it will be closing down as many as 390 stores this year. This means consumers will have to look for other places to buy their cheap personal care products and similar essentials. This company also changed the name of around 200 locations. That is not the only change they are making to these remaining branches, however. They will likely try out charging over a dollar in some of them.
After Shopko announced its plan to shutter nearly 70 percent of its locations by May, they eventually announced that the company is closing down for good. The company filed for bankruptcy in January and initially hoped to get a buyer who will save the remaining locations. Unfortunately, this did not work out. The current plan is to liquidate all assets and then close the rest of the stores by June.
Gap Inc. will shut down around 230 of its stores, which makes up nearly half of its branches, all over the world in the following two years. The corporation plans to turn Old Navy, its sister company, into a separate business because it is doing far better than both Gap and Banana Republic in terms of sales. The Gap Stores that remain open, together with Athleta, Banana Republic, Hill City, and Intermix, will start to operate under NewCo.
Who would have thought that H&M might not be the mall staple it used to be when this year comes to a close? The clothing retailer hopes to optimize business and announced the closure of 160 stores this year. They are making this move as the U.S. remains to be a particularly difficult market for this brand, though it has been displaying steady growth abroad. With this in mind, the fast fashion giant plans to open 355 more stores this year, though most of these will not be in the United States and Europe.
Like they announced the previous summer, Starbucks plans to permanently close 150 of its underperforming stores in 2019. That is more or less triple the stores they normally close down in one fiscal year. The company explained that the closures will happen in big cities that have oversaturated markets. After all, their locations in these places only tend to cannibalize one another.
The Children’s Place
The Children’s place announced its plan to shut down 300 stores by 2020. Forbes said that the children’s retailer previously closed down 191 stores by the end of last year. However, it still has to close around a hundred underperforming locations more. The company also has intentions to boost its presence online in the hopes of increasing profits.
IF you are a cyclist, we have had news for you. Performance Bicycle will soon be a thing of the past. The nation’s biggest bike retailer, with its 104 locations, will close down. Performance Bicycle scheduled the last closure on last March 2. Last fall, Advanced Sports Enterprises, its parent company, filed for Chapter 11 bankruptcy. Although the corporation hoped to keep at least half of the locations open with new leases, it decided that it would be better to simply shut down the brand entirely.
Sear Holdings, which is the owner of both Kmart and the namesake store, announced it will shut down around 89 locations by March. The entire list of these closing stores has shown that it will happen across the country, although the states that are impacted the most happen to be Florida and Texas. There are seven locations closing down in each of these states.
Vera Bradley seems to be rethinking its strategy. First, it is putting attention not on its brick-and-mortar stores but on licensing. The brand is planning to sell its home products using other retail chains like Macy’s and Bed Bath and Beyond instead. When it comes to full-line stores, the company will be closing as much as 50 locations, nearly half of its overall stores, by 2021. This is when many of the leases are due to expire. However, customers can still visit the remaining 52 factory outlets of the store.
Abercrombie & Fitch
Abercrombie & Fitch has plans to shutter 40 stores next February, most of which are in the United States. This is a slight increase from the stores it closed down in 2018, which totaled 29. However, there is some good news. Business Insider reported that a company spokesperson announced that the company will keep investing in the stores by “delivering approximately 85 new experiences, including 40 new stores, with continued reduction in overall square footage.”
Christopher & Banks
In late 2018, Christopher & Banks revealed its plans to shutter 30 to 40 locations in the following two years. Keep in mind that this does not necessarily mean sales are down for the women’s retailer. As a matter of fact, the company claimed it saw a rise in e-commerce and expects an increase in net sales this year.
In 2018, the lingerie and womenswear retailer shut down 30 stores, and more are expected this year. Earlier this year, L Brand, its parent company, made the announcement that they will shutter another 53 Victoria’s Secret locations. The closures make up 4 percent of their 1,143 stores all over the world.
All of the two dozen Henri Bendel locations nationwide shuttered in early 2019. L Brands, its parent company, made the announcement that Bendel’s website and stores, including the Fifth Avenue store in New York, would close down last fall. The company decided it would be best to put its attention on brands with better potential such as Bath & Body Works and Victoria’s Secret.
Chico’s FAS is the parent company of Chico’s. It recently confirmed that the women’s clothing retailer will be closing a total of 250 locations in the following three years. Not only will it affect the namesake line but also locations of two other brands under the company: Soma and White House Black Market. However, they have yet to confirm the exact locations that will be affected.
The popular home and garden store has already shut down 51 of its underperforming stores this year. Of these, 20 were in the United States and 31 in Canada. In late 2018, Lowe’s announced its plans and a target date of February 1, 2019. They made this move not long after Marvin R. Ellison, former CEO of J.C. Penney, took over the company after the retirement of CEO Robert Niblock.
Like plenty of other stores here, e.l.f. Cosmetics is bidding adieu to the physical stores and placing more focus on e-commerce. The beauty line planned to close all of its 22 brick-and-mortar stores by the end of March 2019. If you are a fan of their cosmetics, you have no need to fear because their website is up and running. Moreover, they will also keep selling their products in different drugstores nationwide.
We are all familiar with J.C. Penney as it has been a staple store in many malls for decades. However, it has not been immune to poor sales in the past few months. After doing poorly during the holiday season and dropping in stock value, the company decided to close down 18 department stores this year. It also plans to shut down 9 furniture stores, so the grand total number of closures is currently at 27.
Z Gallerie is yet another retailer that had to file for bankruptcy recently. The upscale home furniture hopes to get a buyer who will keep it up and running. Until that happens, it is closing 17 stores. This digit makes up for around a fifth of the 75 locations it has across the country.
In an effort to give the company new life and improve its online presence, Destination Maternity Corp. has decided to shrink its physical presence. The retailer is going to close down anywhere from 42 to 67 locations by the end of 2019. It hopes to reduce store expenses by expanding its digital presence. According to USA Today, it plans to try locations “with reduced square footage to drive higher productivity.”
Late last year, Beauty Brands let everyone know that it plans to close 25 of its stores. The company did not only lay off corporate staff members but also filed for bankruptcy last January. During the filing, the brand noted that it suffered from the higher costs of being “a predominantly brick and mortar retailer.”
Even though Things Remembered filed for bankruptcy last February, it found a buyer willing to save the remaining locations in the country. Enesco LLC bought 176 stores from this retailer, which is best known for selling personalized and engraved products. However, this development will turn the company into a smaller version of its former self. During the bankruptcy, the retailer boasted of 450 locations. As you can see, more than 250 stores will be shuttered.
Ascena Retail is the parent company of different womenswear brands. Some of its subsidiaries are Ann Taylor, Dress Barn, Lane Bryant, and Loft. Unfortunately, it has experienced a decline in sales in the past couple of years. In an effort to counteract this loss, the company is planning to shut down hundreds of locations across its brands. Roughly 667 stores will be closing, 400 of which will close down by July.
No, even supermarkets are not immune to poor sales. Southeastern Grocers, the parent company of Winn-Dixie, Harveys, and Bi-Lo, announced its intention to shutter 22 stores on or before March 25. It made this decision less than a year after it came from Chapter 11 bankruptcy, which already led to 94 closures. Of the three subsidiary brands, Bi-Lo will suffer the most with 13 stores due for closure.
Lord & Taylor
After spending over a century in operations, Lord & Taylor shuttered the flagship store on Fifth Avenue last year. Unfortunately, that was not the end of it. More closures are on the way with around ten more locations expected to close by the end of the year. However, they have not yet disclosed the affected locations.
Foot Locker Inc. is due to close a total of 165 stores through the year, according to the announcement it made in March. However, it plans to spend millions on upgrading the remaining locations. It made the move in the hopes of improving profit for the shoe retailer. Shareholders were surprised when it did better than expected during the final quarter of last year.
Macy’s shut down a total of eight stores earlier this year. These closures are merely a part of numerous planned closures they announced a couple of years ago. The closures have affected two California locations, and one each in these states: Indiana, Massachusetts, New York, Washington, Wyoming, and Virginia.
It seems like J. Crew simply cannot stay out of the headlines in the past few months. After the company lost its CEO last year, the brand decided to kick off 2019 by shuttering six stores. These closures came as a part of its ongoing plan to close down 30 stores, a move the company already announced the previous summer. However, it has not revealed the exact number of closures it has in mind.
99 Cents Only
This retail company, which offers discount products, has found itself in a very difficult situation because of the competition from other companies such as Dollar Tree, Walmart, and Dollar General. It even reported a net loss of $27.1 million in December 2017. This 35-year-old company has tried to turn the tide, but to no avail.
In 2017, GNC’s gross revenue fell 3.4 percent year after year to approximately $2.5 billion, while it had debt worth $1.3 billion. The chief executive of GNC said that the company was doing well in China and on e-commerce in the second quarter of 2018. The company also reported that it would sell 40 percent of its shares to a Chinese pharma company. The said Chinese company will then produce, promote, sell, and distribute GNC products in China.
This retailer of office supplies experienced some difficult times in 2017 with its sales dropping 7 percent to $10.2 billion. Gerry Smith, its CEO, announced that the company would be shifting from doing only retail sales to also providing services. RetailDive reported that the new emphasis is increasing the top-line of the company. A business to business service that Office Depot provides is a subscription program called the “BizBox.” This sub-unit provides services more than products.
Retailers of vitamins seem to share similar struggles in their sales just like GNC, and now, Vitamin Shoppe. Just like GNC, it has shifted into making their e-commerce business and has also started its own subscription service. RetailDive ascribes this struggle that Vitamin Shoppe and GNC are going through to the decreasing popularity of malls as well as the increasing number of supplement store competitors.
This retailer of luxury clothes saw a 5 percent drop in its top-line sales to $4.7 billion in the 2017 fiscal year. Neiman Marcus tried several things to make some improvements and RetailDive said they seemed to be working. However, the company’s interest expenses are still a huge burden.
The sales of this fashion retailer started declining when Neda Mashouf, its creative director, left after she divorced her husband in 2007. Manny Mashouf started the company in 1979. The declining popularity of malls played a major role in the challenges that Bebe is now facing. It reportedly had an operating loss of $4.6 million in 2017. The company attempted to remedy the situation by staying away from the usual retail space. It paid out $65 million to close its physical stores and focused solely on e-commerce.
Pier 1 Imports
Pier 1 experienced a 9.2 percent drop in the net sales in the first quarter of 2018 which translates to $371.9 million year over year. Pier 1’s credit rating was also downgraded by S&P Global analysts. Oh no! What’s more? Trumps 10 percent tariff against Chinese goods is another card against them. Pier 1 once reported that over half of the goods they sell are made in China. Pier 1 needs a new solution to its problems.
This retail company specializes in clothing, luggage, and home furnishings. However, customers don’t seem to appreciate this anymore. Lands’ End’s association with Sears is the original cause of its troubles. Sear’s went on another direction in 2013. One such brand was the youthful Canvas brand which aimed to attract consumers who were fashion-forward. Canvas wanted to feature clothes in “designer styles to relaxed looks.” However, the brand, despite being trendy did not get its target clientele onboard.
In 2018, this supplier of rock n’ roll instruments was given a year to pay a $900 million debt. The company has been around for over 50 years now, but it seems like people don’t buy as many guitars as they used to. CheatSheet reported that Guitar Center’s sales for electric guitars fell 36 percent from 2005 to 2016. This instrument retailer may be experiencing some financial problems, but it still plans to open new stores.
The shoe retailer has a debt worth $1.5 billion and is currently negotiating to restructure it. Bloomberg says that this includes selling parts of the company as well as filing for Chapter 11 bankruptcy. In its attempt to stay afloat, the company has sold off Easy Spirit, another brand it owns.
These days, more and more brides opt to have more casual attires and cheaper events for their weddings. That’s why those in the wedding industry such as David’s Bridal are experiencing drops in their sales. The wedding dress superstore sees some market and operational challenges: sales, margins and earnings dropping. In addition, David’s Bridal’s credit rating was downgraded by S&P Global in June 2018. .
USA Today included Cole Haan on their list of 26 companies which are most at risk in 2018. The company even attempted to appeal to the rising trend of athletic shoes by changing its image and focusing more on sneakers instead of dress shoes. Cole Haan was owned by Nike, an athletic shoe brand. Then, it was bought by Apax Partners in 2013 and it abandoned Nike’s famous comfort technology. Cole Haan had included sneaker comfort into their dress shoes.
Many women have fond memories of Claire’s, especially in their formative years. It was their go-to place in any mall for girls’ jewelry and accessories. They even have their ears pierced there for the first time. However, this store which was first established in 1961, may not be part of the future young girls’ memory any longer as it had ceased its IPO. By May 2018, it had shut down 130 stores. It now plans to sell itself to potential investors and buyers.
This outdoor company had some problems with debt. In 2017, Golden State Capital, this Bellevue-based company’s owners, was thinking of selling the company to solve their financial problems. In the same year, their credit ranking was downgraded by S&P Global. This challenge, however, is nothing new to the company as it did come back from bankruptcy in 2009. Golden State Capital saved it from bankruptcy when they bought it in 2009.
This retailer of pet products has over 1,500 stores in Canada, Puerto Rico, and the U.S. The root cause of PetSmart’s problems is basically the same as the others. More and more consumers are turning to e-commerce these days as it is more convenient and it sometimes offers cheaper prices. PetSmart did buy Chewy, an e-commerce site, but the $3.35 billion expense for the site added another burden to its existing debt. Reuters reported that it was the highest amount a company ever spent on an e-commerce site.
This discount department store based in Jacksonville has been struggling with its sales but is seeing some light in the proverbial tunnel! Stein Mart has managed to put some balance in their sales and their digital revenue has increased by 47 percent in the latter half of 2017. The company did report a $23.4 million bottom-line loss for the year but has further added that the loss was decreased by 10 percent. It looks like there is no need to worry about our favorite discount store!
In May 2018, Fred’s Pharmacy reported that its gross sales for the previous fiscal year dropped 4.3 percent and its bottom-line loss reached $139.3 million. Fred’s tried to establish 1,000 stores around the U.S., increasing its number from 600 stores, but the plans fell through. It sold CVS, its specialty pharmacy, for $40 million.
FullBeauty Brands Holdings Corp
FullBeauty is the owner of brands for plus-size men and women like Woman Within, fullbeauty.com, Jessica London, ellos, Roaman’s, Brylane Home, and KingSize. This retailer also blames the e-commerce giant Amazon for its declining sales. Apax Partners, owner of FullBeaty, included this reason in their message to their lenders in 2017.
This retailer has been around for 100 years! Just like how the saying goes, all good things must come to an end, but did they? Bon-Ton, a department store, and online retailer filed for bankruptcy last year. It was then sold and liquidated. However, in October 2018, it relaunched its site for e-commerce and announced its plans to reopen some of its stores.
The most common reason why a company files for bankruptcy is its failure to keep up with the changing interest of their consumers. This is exactly the case with Tops Market. With more and more shoppers interested in non-traditional food sellers, competition, and falling food prices, Tops Market had no choice but to file for Chapter 11 bankruptcy. For now, The East Coast grocery chain will keep most of its stores open in Pennsylvania, Vermont, and New York.
Kohl’s is due to close four stores that are based in or near malls through 2019. The company is doing this to prevent itself from suffering the same pitfalls that other mall-centered companies did. The retailer described the shops to be its “lower performing” stores. It also assured everyone that employees from those locations were offered severance packages or jobs at other stores. If anything, it is a relief to hear that the closures were made as a preventive measure instead of an urgent decision. The brand is planning to retain the overall store count by opening four smaller locations.