International and National brands including department stores have been rapidly closing. When the E-commerce industry thrived, traditional physical stores suffered greatly. At record-breaking speed, retailers with physical stores have closed their businesses and sadly this trend is expected to rise in 2020 which will affect all types of businesses from clothing lines, homes goods to electronics as they face massive declines.
Payless ShoeSource is shutting over 2,500 stores and has the highest number of store closures compared to all other businesses that will close this year. In order to get rid of their goods and liquidate, clearance sales are still ongoing. Whilst stores will close at the end of March, a few stores will remain open until May.
Gymboree Group Inc., the children’s clothing retailer declared that they would shut down an estimate of 800 Crazy 8 and Gymboree stores throughout Canada and the United States. In mid-January, they filed for Chapter 11 bankruptcy protection. Though the liquidation sales are still ongoing, accepting of online transactions has ceased and several operations of its stores in 2017 have stopped.
A whole chain of stores which includes over 500 across the country will close, as confirmed by Charlotte Russe in March. Though there was still buying of products in several locations in physical stores during their liquidation sales, online sales had already ceased. The closure of 94 stores was announced before by the company, however, it wasn’t until April 30 that the remaining store closed.
With the hope that a buyer would help save Shopko’s remaining stores, in January, they filed for bankruptcy. Shopko announced that it would be closing all stores permanently despite previously announcing it would only close roughly 70 percent by May. They now plan to get rid of its merchandise, liquidate and shut down all locations by June this year as they sadly, were unable to find a buyer.
Old Navy, which is Gap’s sister company, has consistently outdone both the Banana Republic and Gap in sales. Because of this around 230 Gap stores will close within the next two years, which is half of the total number of its locations, in order to improve Old Navy has its own business. The new name will continue operations with stores such as Athleta, Hill City, Banana Republic, Intermix and Gap which are currently still open.
H&M has been steadily expanding and doing well abroad. After some consideration, the planning of 355 new stores by the company will be set up in 2020 and will mainly be located overseas instead of within the United States and Europe. This is because of the struggling markets for the brand in the U.S which may result in H&M losing its place as the chief commodity. Despite the opening of new stores overseas,160 store locations within the US will close over the year, in order to optimize business.
Over-saturated markets and major cities, where branches of this coffee chain compete with each other, will be greatly impacted by Starbucks’ decision last summer, for its plan in 2020 to permanently close 150 under performing stores, which is three times more than it closes every fiscal year.
The Children’s Place
The Children’s Place previously revealed its intention to close down 300 stores which did not perform well by 2020. Forbes notes that the retailer of these children’s products had already closed 191 of its stores before 2018 came to an end and still has more than 100 stores to close. Additionally, The Children’s Place is spending a lot of money to improve its online presence to maximize its income.
The parent Advanced Sports Corporation filed for bankruptcy last fall. It primarily aimed to save at least 50 percent of the locations of the cycling stores by renegotiating their leases. However, in the end, it had to close the brand altogether. For cyclists, this is terrible news, since the biggest bike shop in the country with each of its 104 stores has been permanently shuttered and closed, the last one being on March 2.
At the beginning of the year, the corporation controlling both Kmart and its flagship stores, Sears Holdings, declared it would close about 89 stores by March this year. The list of closed stores suggested that it has impacted locations throughout the U.S. Florida and Texas seem to have felt much of the effects, as seven stores in both states were closed.
Although the famous home and garden retailer had already shut down 51 of its under-performing stores this year, 20 in the United States and 31 in Canada. By the end of 2018, due to the fact that right after Marvin R. Ellison, who was the former CEO of J.C. Penney, took control of the company, after Robert Niblock, Lowe’s longtime CEO, retired, a move to close stores was announced in which Lowe’s revealed its plans to set the target to finish store closures by February 1, 2020.
By 2021, when the leases are expected to expire, up to 50 out of Vera Bradley’s 110 branches are planning to close, due to the reconsideration of business strategy, which moves to focus on licensing rather than having actual physical stores. 52 of the company’s factory outlets are currently open, so customers are still able to visit its stores. Other brands such as Macy’s and Bed Bath and Beyond will most likely buy its home merchandise.
Abercrombie & Fitch
A company spokesperson, reported by the Business insider, declared that Abercrombie & Fitch will continue investing despite the fact that they reported that it is closing 40 of its stores by next February, the majority being in the United States. This figure is a lot higher compared to the 29 stores that have closed in 2018. The new investment looks to add 40 new stores and plans to provide roughly 85 new experiences with a continued reduction of total square footage.
Christopher & Banks
Due to the increase of online retail, the company’s e-commerce is on the rise and is predicted to continue rising sometime this year. Revealed plans in late 2018, to close down 30-40 of Christopher and & Banks stores for women’s wear, does not suggest that sales are on the decline.
With 1,143 stores worldwide, Victoria Secret, a women’s wear and lingerie retailer, will shut down at least 4 percent of them. L Brand, it’s parent company will close 53 more stores which were revealed in February and in 2018, they planned to cease more stores within the year whilst having already closed 30 of its stores.
In 2018, Henri Bendel made the decision to focus on brands that had greater potential such as brands like Victoria’s Secret and Bath & Bodyworks. Its parent company L Brands announced during the fall of 2018 that all Henri Bendel stores, including its website and famous branch in Fifth Avenue, New York would shut down. By early 2020, two dozen stores were closed.
Chico’s FAS, the parent company of the womenswear chain retailer Chico’s, including some of its namesake brands as well as soma and White House Black Market which are its two other brands, will close 250 of its stores within the course of the next three weeks. The exact locations however that are up for closure have not yet been announced.
With the focus of online and e-commerce sales, many businesses are closing down their physical stores. E.l.f Cosmetics is no exception with twenty-two of its stores closed by the end of March. Their products, however, are still available in drugstores throughout the country and e.l.f products can still be availed through their website.
Clients are being forced to look elsewhere for personal care products and essential items as the discount retailer Dollar tree announced that they will close roughly 390 stores in 2020. Not only will they close many branches in various locations, but they also will raise the prices to more than $1 in many stores and rename the brand of roughly 200 stores.
As a leading brand, J.C has enjoyed a successful position, however like any other high ranking brand, it faced decreases in sales in the last few months. After a decline in stock value and a dry spell during the holiday season, 18 of its department stores were announced to be shut down in 2020. A further 9 of its furniture stores would close, making the total closures to 27.
Z Gallerie, another leading furniture company is still hanging on to the hopes that a buyer would help save it, however, they have had to close 20% of its stores which is about 17 of its branches nationwide and have filed for bankruptcy in the last few months.
In an effort to revitalize the business, Destination Maternity Corp. will minimize its retail presence as well as increase its e-commerce revenues. The closures that will happen within the year would affect about 42 to 67 shops. The goal of these closures is to reduce store expenses and increase the online presence of the company. USA Today notes that the company also seeks to open smaller stores “with reduced square footage to drive higher productivity.”
Beauty Brands suffered from the rising operating cost as “a predominantly brick and mortar retailer.” Which is why they filed for bankruptcy in January which also reduced the number of its corporate employees. Back in 2018, Beauty Brands revealed its plans to close down 25 stores.
Things Remembered found a buyer in February to help save some of its stores around the country after it filed for Chapter 11 bankruptcy. Enesco LLC purchased 176 locations that specialize in engraved goods and custom items. The company had 450 stores originally during the time that they filed for bankruptcy, however, the purchase merely saved a fraction of the company which caused 250 stores up for closure.
Ascena Retail is the parent of a popular brand of women’s apparel that includes Ann Taylor, Loft, DressBarn and Lane Bryant. Overall, the company’s gross profits have fallen over the last few years. To compensate for the losses, the company expects to close down hundreds of its stores of all its brands. About 667 sites are up for closure in total, of which the first 400 are expected to be closed by July of this year.
Supermarkets are also facing several business obstacles. Southeastern Grocers, which runs markets like Harveys, Bi-Lo, and Winn-Dixie, revealed their intentions to close 22 stores this year by March 25. The decision to close some of its stores happened less than a year after Southeastern Grocers recovered from Chapter 11 bankruptcy. The bankruptcy initially forced 94 of its stores to close. Bi-Lo would lose the most from the three brands, as 13 of its stores will be shuttered.
Lord & Taylor
Lord & Taylor has been a very successful business, lasting more than 100 years. Sadly many stores are up for closure this year, with 10 more expected to close in 2020. Lord & Taylor had to close its flagship store located on Fifth Avenue last year. As of now, they have not declared which store locations are to be closed.
In March, Foot Locker Inc. revealed that 167 of their stores would be closing. In its remaining locations, it will invest heavily, spending millions in the process. The change is an effort to increase its margins of income. Shareholders of the shoe company were delighted at its strong results in the fourth quarter of last year.
In the early part of this year, Macy’s closed 8 of its stores. The closures are just part of a series of closures they prepared and confirmed a couple of years ago. This initiative would have an effect on two California stores and one store in each of these states: Indiana, Massachusetts, New York, Virginia, Washington, and Wyoming.
The closures of 6 stores in January 2020 due to the loss of its CEO in late 2018 have caused J.Crew to Crop up all over the headlines recently. The closures are part of an ongoing initiative to close down 30 shops. Last summer, the plan was made public. But, the precise number of locations that will be closed to meet the companies goals are still unclear.
In order to avoid falling through the same difficulties as other retailers in malls, Kohl’s plans to close four of its stores either located within or outside malls by 2020. The company claimed those stores were “under-performing” and either provided severance pay or a position at another Kohl’s store to the employees of the said locations. The closures, however, seem to be more of a way of avoiding any catastrophe than an it being an actual urgent need. By opening four smaller stores the business will continue to run the same number of shops.
In recent years the profits of J.Crew stores have plunged, this being the primary reason for its closure. J. Crew has also said farewell to Jenna Lyons, their bridal shop and beloved creative director. This is sad news for Michelle Obama, America’s former first lady, as she is a big fan of the J. Family, and now her source of go-to clothing is shutting down. The CEO, Millard “Mickey” Drexler, who left the company as well, said raising prices is to thank for the bad news in paradise.
99 Cents Only
The company 99 Cents Only sells discounted items, competing with large names like Dollar Tree, Target and Dollar General. 99 cents announced a net loss of $27.1 million in December 2017, in addition to a loss of $42.4 million in the first and second quarters. As a result the 35-year-old company was eventually sold to Ares Management, ultimately moving to the Canada Pension Plan and then finally to a private individual. The new CEO, Jack Sinclair, announced some good sales from the same store, but unfortunately 99 Cents Only is dropping, rapidly.
With the strengthened market in China and an e-commerce site that showcases good numbers, GNC, a health and nutrition product-related company decided to sell 40% of shares to a Chinese pharmacy company. Despite the demand for health and nutrition and people getting into fitness, the companies sales fell by 3.4% in 2017 which resulted in billions of debts in its top-line sales and profits, which is why GNC turned its focus elsewhere. The pharmacy company that brought its shares will distribute GNC’s products in China by producing, promoting, selling and distributing GNC’s products in China.
Fred’s Pharmacy wanted to expand their stores across the U.S. from 600 to 1,000, but that never happened. The gross profits of the company fell 4.3 percent from the previous fiscal year, with a bottom line of $139.3 million posted. In 2018, Fred’s CFO quit the organization, turning the former media executive into the man in charge. Fred’s then sold for $40 million to a specialist pharmacy, CVS.
Stein Mart, which is a discount department store located in Jacksonville, seemingly isn’t doing so well as late. While they balanced their revenues and grew their digital revenue by 47 percent in 2017, they posted a bottom-line loss of $23.4 million. We hope that some financial advisors try to aid them quickly.
Business supplier Office Depot saw a 7 percent decrease in revenue in 2017 to $10.2bn. Instead of concentrating solely on retail sales, CEO Gerry Smith says they’ll also begin to offer services. The shift has already lifted the top-line of the company. Office Depot also provides a business-to-business operation, a subscription system called “BizBox.”
The Vitamin Shoppe has similar issues with GNC. They have reinvigorated their e-commerce business and also have in the works a subscription service to fight these issues. Yet its top-line revenue in 2017 fell to $1.2 billion, down 8.5 percent. The declining popularity of malls, as well as the growth of rivals, is the reason why Vitamin Shoppe is in this difficulty today. Expanding their ranges, launching distribution services and doing marketing activities would potentially help pull them out of their current problems.
Luxury retailer Neiman Marcus saw its top-line revenues sink to $4.7 billion in the 2017 fiscal year, down 5 percent. Some proposed approaches to cut 200 jobs and build a “Digital First” Customer Engagement Program It was speculated that the high-end stores would be bought by Canadian company Hudson’s Bay but plans later fell through.
Bebe’s revenues have decreased since 2007 when the creative director Neda Mashouf left the organization and divorced her husband Manny Mashouf. In 1979 Manny developed the brand but the company has faced setbacks with the ongoing decline of malls and their popularity. The operating loss reportedly stood at $4.6 million in 2018. The company agreed to shell out $65 million to close its retail stores and concentrate on e-commerce.
Pier 1 Imports
Pier 1 Imports saw a 9.2 percent fall in net sales in the first quarter of 2018, equivalent to $371.9 million annually. If this wasn’t a significant enough blow, then S&P Global analysts reduced their credit rating. The 10 percent tariff of current President Donald Trump on all Chinese goods is another explanation for their decline as more than half of their items are made in China.
Lands’ End, the brand of apparel, luggage, and home furnishings, isn’t as popular with customers as it once was previously. The relationship between the company and Sears seems to be the source of all of its problems. Although sales of catalog products by the company are high, former CEO Federica Marchionni has made some unchangeable errors.
For over 50 years, the guitar center has been booming but recently people seem to be buying fewer guitars. The manufacturer of rock ‘n’ roll instruments was given one year to pay a debt of $900 billion, the result of a 36 percent decrease in revenue from 2005 through 2016. They still however, plan to open new stores, despite the problems they are facing.
Nine West, a shoe store is looking to rebuild its structure by filing for bankruptcy and selling bits of the company. This is primarily due to a $1.5 billion debt. The brand has moved away from shoes and is concentrating on apparel, jewelry brands like Kasper Grouper, Anne Klein, and One Jeanswear Group. They decided to close all but 35 stores and are concentrating more on apparel, jewelry brands like Kasper Grouper, Anne Klein, and One Jeanswear Group.
With a wider range of wedding boutiques opening at cheaper prices, that offer inexpensive wedding gowns of all trends, expensive weddings and fancy gowns are now outdated. The majority of modern brides are looking for casual designs and cheaper options which spells bad news for the likes of David’s Bridal gown shop. The company is facing a rapid sales decline, with $520 million in loans due in 2020 and $270 million in unsecured debt due by 2020.
They say that “all good things must come to an end” and such is so for the department store and online seller Bon-Ton which has impressively been around for 100 years. The reason for their success was mostly due to being located in small towns with zero competition. However, despite its long-running success, the store filed for bankruptcy last year and was then sold and liquidated. Amazon was one of the reasons for its downfall.
A business typically files for bankruptcy when it is not keeping up with the changing needs of its customer. This is precisely what happened to the East Coast Tops Store grocery chain. While they filed for Chapter 11 bankruptcy however, people living in Pennsylvania, Vermont, and NY can still enjoy the chain for now, as most of their stores will remain open in the states.
Cole Haan, a luxury footwear company owned by Nike, entered USA Today’s most at-risk list of companies in 2018. Cole Haan tried to alter their image by relying more on sports shoes rather than dress shoes, however it all back-fired. When Apax Partners acquired the company in 2013 they agreed to do away with the popular comfort technology from Nike. They do not, however, seem to be improving at all.
Accessories store Claire’s was first founded in 1961. It was a favorite among young girls, teens and adults who loved fashion accessories around the U.S. Recently, the company ceased IPO and in 2018 filed for Chapter 11 bankruptcy. Claire’s shut down more than 130 stores nationwide as of May 2018. The remaining stores will be for potential buyers and investors.
FullBeauty Brands Holdings Corp
FullBeauty Brands Holding Corp owns brands for men and women of a plus-scale scale. Woman Within is only some of the brands, including fullbeauty.com, Jessica London, Ellos, Roaman’s, Brylane House, and KingSize. Amazon is blamed for their falling revenues in the first quarter of 2017, with revenue decreasing by 30 percent. For some new people in power, they expect to turn a new leaf and again increase revenue.
Eddie Bauer, a Bellevue-based outdoor brand, came back from bankruptcy in 2009 but no one knows what the future holds. S&P Global recently downgraded their credit rating, despite difficulties keeping up with trends. Eddie Bauer will most likely merge with Pacific Sunwear aka PacSun, located in California.
Bluestem Brands has been designated an at-risk company which retails home, clothing, electronics, cosmetics, and health products. They own 13 e-commerce websites, including Bedford, Appleseed, Fingerhut, Free, Draper’s & Damon’s, Gettingon.com, and Blair. Let’s hope they’ll execute a strategy fast!
PetSmart recently acquired an e-commerce platform, Chewy, but the high price tag of $3.35 billion just raised their debt dramatically. Can you imagine that this is the biggest a company has ever paid for an e-commerce site? PetSmart has over 1500 stores throughout the US, Canada, and Puerto Rico. Since Amazon has become an e-commerce hotspot in which products are easily browsed and delivered, which thus attracts more consumers, you can safely say it is to blame for their $8 million debt.
BKH Acquisition Corp.
BKH Acquisition Corp. is responsible for the more than 100 Burger King chains in Puerto Rico. But sadly, they’ve been put on a list called the Distressed Company Alert. This current crisis stems from continuing credit problems, as well as the country’s economic decline.
The people’s popular mattress store recently filed bankruptcy for Chapter 11, partially because of an accounting scandal. The company has announced that 700 of its total 3,500 stores will be put up for sale. Their hope is to end needless leases and attempt to restructure the company.
Operations throughout U.S. and Puerto Rico stores in more than 74 will soon cease. National Stores in recent years may have taken on too many brands, leaving them in massive amounts of debt. The company that owns Conway, Anna’s Linens, and Fallas has recently filed for Chapter 11 bankruptcy.