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 department 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. However many already know that they had 94 stores closing from a closure announcement before this one.
Many remaining locations are expected to close by April 30. Even though they no longer accept online sales, but customers were given the opportunity to take advantage of their in-store liquidation sales at different locations.
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.
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.
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.
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.
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.
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
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, the store may be closing but 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, this once go-to store 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.
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.
Destiny Maternity 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.” This will allow them to increase their income while controlling their expenses.
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 nearly July.
It’s just not just small franchises that can go out of business. 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 forclosure.
Foot Locker Inc. is due to close a total of 165 stores throughout the year, according to the announcement it made last march. However, it plans to spend millions on upgrading the remaining locations.
It made this move in the hopes of improving profit for the shoe retailer. It plans to close the stores not bringing in profit and then working to improve the remaining locations. While focusing Shareholders were surprised when it did better than expected during the final quarter of last year.
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.
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. If you are sad about this store closing, just ahead over to China!
Office Depot used to be the staple office supplies store. When school season came around, Office Depot was the go-to place for all your children’s needs. Unfortunately, this retailer of office supplies experienced some difficult times in 2017
These difficult times included sales dropping 7 percent to $10.2 billion, a huge deficit for the company. Gerry Smith, its CEO, announced that the company would be shifting from doing only retail sales to also providing services.
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. Nowadays everything can be purchased online, so consumers don’t rush over to the mall for their favorite products anymore.
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. Although this instrument retailer may be experiencing some financial problems, it still plans to open new stores. Not giving up yet!
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.
In its attempt to stay afloat, the company has sold off Easy Spirit, another brand it owns. They don’t plan on closing the store entirely, but instead want to do everything they can to keep the establishment.
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 is starting to notice some market and operational challenges: sales, margins and earnings dropping. In addition, David’s Bridal’s experiences more obstacles with when its 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 for Eddie Bauer, 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. It bounced back once, it can do it again.
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 a total of 4.3 percent and its bottom-line loss reached $139.3 million. Fred’s tried to establish 1,000 stores around the U.S.
This pharmacy tried to increase their number from 600 stores, unfortunately, the plans fell through. However, in an attempt to gain profit It sold CVS, its specialty pharmacy, for a large sum of $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.
Apax Partners, owner of FullBeaty, included this reason in their message to their lenders in 2017. With the popularity of Amazon in recent years, retailers are losing out on profit. Most people prefer to order their items through Amazon, a third-party site that sells products fast and cheap.
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.
The store 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. It’s not all bad news for Bon Ton, congrats on the comeback!
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.
After this, Tops Market had no choice but to file for Chapter 11 bankruptcy. For now, The East Coast grocery chain chooses to keep most of its stores open in Pennsylvania, Vermont, and New York.