MASSIVE STORE CLOSURE: TOP 13 RETAILERS AFFECTED

2017 has witnessed a massive closure of stores by top retailers in the United States of America and in Europe. It is a situation that is not particular to the U.S. alone; it is a global retail trend, perhaps. Even in less developed countries, there are incidences of massive store closure leading to loss of jobs and a decline in economic activities in places largely affected.

Could this be anything other than a retail trend? Is it a retail business cycle situation that may change for the better anytime soon?

What could be responsible for this negative trend in the global retail sector? Are there answers? Yes. There are likely causes. These may include a change in customer behavior and preference for e-commerce above brick-and-mortar stores; high cost of rent; the present economic recession; decline in sales and many others.

According to anETRetail.com online publication on June 2nd, 2017, here are 13 top retailers who have announced the closure of their stores since the beginning of 2017.

RADIOSHACK

The electronics retailer, Radioshack has closed more than 1,000 stores since Memorial Day weekend and is left with about 500 dealer-owned stores.

      

      MICHAEL KORS

The American luxury fashion retailer, Michael Kors is planning to close 100-125 stores over the next two years in order to save the company $60 million annually.

      ABERCROMBIE AND FITCH

A&F is an American retailer which focuses on upscale casual wear for young consumers. The retailer has announced its plan to close 60 more U.S. stores this year as sales at its namesake brand keep collapsing despite a new look for the merchandise and a slick (but ineffective) ad campaign.

       

      J. C PENNY

The American department store chain with 1,014 locations in 49 U.S. states and Puerto Rico announced in February that it will shut up to 140 storefronts and later revealed the names of 138 stores that are getting the axe.

      MACY’S

The department store, Macy’s, after a disappointing sales in a 2016 holiday season, has announced the closing of 68 of its stores nationwide.

      BEBE

Bebe Stores, Inc is a women’s retail clothier which develops and produces a line of women’s apparel and accessories. It announced that it was shutting down and closing all of its stores due to the latest in a string of liquidations and bankruptcies that have swept the struggling sector.

      GUESS

The American clothing brand and retailer announced during its fourth quarter earnings call this week that it will be closing 60 underperforming stores this fiscal year. The retailer, which operates about 400 U.S. locations, has closed 62 U.S. stores, including 10 this past quarter, in the past two years.

      CROCS

A shoe manufacturer and retailer has announced its plans to shut doors amid tough retail times. After announcing last week’s revenue declines across multiple geographies as well as sluggish wholesale, retail and digital sales, the shoe maker followed up with plans to shut 158 doors.

      AMERICAN APPARELS

The North American clothing manufacturer, designer, distributor, marketer and retailer, following the sale of its intellectual property to a Canadian retail brand, Gildan Activewear, American Apparels s closing its L.A. headquarters and all 110 U.S. stores.

      STAPLES

Staples, Inc is an American multinational office supply retailing corporation with over 1,500 stores in North America. Staples said it was closing another 70 stores in North America amid sharp decline in sales in its top market and a continued pivot to business services and away from brick-and-mortar for the leading office supplies retailer.

      PAYLESS SHOESOURCE

The discount footwear retailer shut down 400 of its stores two months ago after filing for bankruptcy protection, and is likely going to close another 408 stores soon. The company is seeking to immediately close 112 locations and potentially shut down 296 stores if it can’t get cheaper rent for those stores, according to court papers filed this week at federal bankruptcy court in St. Louis, Missouri.

      RUE 21

The American specialty retailer of young men and women’s casual apparels and accessories plans to close up to 400 stores out of 1,218 in 48 states, reported the Associated Press.

      SEARS AND KMART

Sears said that it would close 109 Kmart stores and 41 of its namesake Sears outlets.

There are other retailers across the globe that are struggling to maintain their existing number of stores and are planning to shut down some nonperforming stores. This is a situation that may continue to overshadow the retail industry and sector this year, 2017 and, perhaps, beyond.

What opportunities does this trend hold for us? Only time shall tell.