The staggering rate of store closures that has rocked the retail industry in the US over the past couple of years is continuing in 2019. More than 7,100 stores are closing in 2019 so far. Retailers closed a record 102 million square feet of store space in 2017, then smashed that record in 2018 by closing another 155 million square feet, according to estimates by the commercial real-estate firm CoStar Group. This year we are predicting a continuation of this trend in the retail space.
Charlotte Russe, Family Dollar, and Chico’s recently announced more than 1,100 store closures in a span of 24 hours. Payless has said it plans to close all of its 2,500 stores in what is the largest retail liquidation in history. The discount chain Fred’s said Friday that it plans to close 49 stores, bringing its total number of store closures this year to 312.The only good thing to come out of the Payless closure was a 25-year-old woman who bought 204 pairs of shoes from a Kansas Payless store to donate to flood victims in Nebraska. Addy Tritt purchased all of the remaining shoes at the store in Hays, Kansas. The order — which cost just $100 after discounts — included 162 pairs of baby shoes, 40 pairs of women’s shoes, and two pairs of men’s shoes.
The retail apocalypse is threatening “devastating” outcomes for retailers. Twenty-two retailers in Moody’s portfolio are in serious financial trouble that could lead to bankruptcy, according to a Moody’s note published last Wednesday. That’s 16% of the 148 companies in the financial firm’s retail group — eclipsing the level of seriously distressed retail companies that Moody’s reported during the Great Recession.
Here’s a list of all the stores closing this year:
- Payless ShoeSource: 2,500 stores (Shoe store)
Payless emerged from its prior reorganization ill-equipped to survive in today’s retail environment. The company has too much remaining debt, too large a store footprint and yet-to-be-realized systems and corporate overhead structure consolidation. As a consequence the North American retail and e-commerce operations cannot be sustained.
- Gymboree: 805 stores (Children’s apparel)
- Dress Barn: 650 stores ( Women’s clothing)
After 50 years, Dressbarn cannot operate at an acceptable level of profitability in today’s retail environment.”
- Charlotte Russe: 520 stores (Womens clothing)
- Family Dollar: 390 stores (Variety Store chain)
- Shopko: 371 stores ( Department Store)
Shopko failed to find a buyer for its business, and is liquidating all stores.
- Fred’s: 312 stores ( Pharmacy)
- Chico’s: 250 stores (Womens clothing)
- Gap: 230 stores ( Clothing)
Gap reported that the brand’s same-store sales fell 7% during the holiday quarter. The company also said it would spin off its Old Navy brand.
- LifeWay: 170 stores (Religious retailer)
LifeWay Christian Resources is closing all 170 of its stores. The Nashville-based company said it will continue to sell Bibles, books, children’s products, church supplies, and Christian music and movies on its website.
- Performance Bicycle: 102 stores (Bike sports store)
Performance Bicycle’s parent company, Advanced Sports Enterprises, announced that it would close all 102 of its stores.
- Sears: 70 stores (Department store)
Sears Holdings owns Sears and Kmart stores.
- Destination Maternity: 42-67 stores (Clothing )
- Victoria’s Secret: 53 stores (Clothing)
Victoria’s Secret said it would close 53 stores this year, citing a “decline in performance.”
- Office Depot and OfficeMax: 50 stores ( Office supplies)
- Kmart: 50 stores (Department stores)
- CVS Health: 46 stores (Pharmacy)
- Party City: 45 stores(Party Items)
They are focusing on the most profitable locations to improve the overall health of their store portfolio.
- The Children’s Place: 45 stores (Clothing)
- Pier 1 Imports: 45 stores ( Home décor)
This could increase to 145 locations — if the company is “unable to achieve its performance goals.”
- Abercrombie & Fitch: 40 stores (Clothing)
The company announced the closings as it reported that its Abercrombie brands’ same-store sales fell 2% during the fourth quarter. Most of the stores that Abercrombie & Fitch plans to close are located in the US, the company said.
- Bed Bath & Beyond: 40 stores (Department store)
Bed Bath & Beyond said this number will grow unless we are able to negotiate more favorable lease terms with our landlords.”
- Christopher & Banks: 30-40 stores (Clothing )
- JCPenney: 27 stores (Department stores)
JCPenney is close 27 stores in 2019, including 18 full-line department stores and 9 home and furniture stores.
- Beauty Brands: 25 stores (Salon and Spa superstores)
- Henri Bendel: 23 stores (Fashion accessories)
Henri Bendel closed all its stores in January after 123 years in business.
- Lowe’s: 20 stores (Home improvement)
- Z Gallerie: 17 stores (Home furnishings)
- Walmart: 17 stores (Department stores)
The stores include Walmart Supercenters and Neighborhood Market stores in Texas, Louisiana, Indiana, Arizona, California, Kansas, South Carolina, New Hampshire, Tennessee, Virginia, and Washington.
- Macy’s: 9 stores (Department stores)
Macy’s is closing stores in Wyoming, Washington, California, New York, Indiana, Massachusetts, Virginia, and West Virginia.
- J.Crew: 7 stores (Clothing)
- Kohl’s: 4 stores (Department Stores)
- Nordstrom: 3 stores (Department stores)
Interesting to note that 73% of closures are for women’s apparel chains and a further 8% are department stores where a strong percentage of sales are apparel. Seems to be telling us something.
A group of thieves are going to retail stores and are stealing clothes by sizes. . . Police say they are still at large.