Rather than tucking their tails and jumping into the cloud, many large retail stores are closing down under performing physical locations in order to improve stronger locations. Some are in bankruptcy, a few are shutting down for good, and some will focus on online sales.
These companies are stocking new products, doing market analysis, and collecting data to pull customers from their phones and back into stores.
Here are the 20+ stores that have decided to scale back operations. We will continue to update this post as we hear of new store closings.
Guess Inc.
Closing: 60 stores
Announcement made: March 15th
Moving forward: In the last two years, Guess Inc. has closed 62 stores. The company will close 60 more in 2017. Relieving themselves of these stores will garner $16 million every year, according to WWD. Closures, lowered rent, digital landscape improvements, and more efficient production and distribution are part of Guess Inc.’s plan to better business in the Americas, just-style says.
Abercrombie & Fitch Co.
Closing: 60 stores
Announcement made: March 2nd
More information: The teen market that once carried Abercrombie & Fitch on its shoulders has shifted to mobile purchases and the fashion styles of Forever 21 and H&M. After trying to reach its teen crowd through less provocative advertising, and a lax dress code, Abercrombie & Fitch still shows flagging sales, says Fox Business.
Moving forward the natural way: Abercrombie & Fitch Co. stated they will shut locations “through natural lease expirations.”
The company also stated about half of Abercrombie & Fitch’s 745 U.S. store leases are up for renewal over the next 18 months. These expired leases will save money.
J.C. Penney
Closing: 130 – 140 stores
Announcement made: February 24th
More information: By mid-2017, 40 states will lose many of the trademark J.C. Penney storefronts. Websites listing store closings have popped up so customers can see if they need to find a new place to shop. After closing a whopping 14% of J.C. Penney’s total locations, it begs the question:
What will happen to their employees?
The answer: 6,000 employees will be given the opportunity to retire early, according to Bankrate.com.
The others will receive “separation benefits”, help finding another job, and resume and interview preparation services, the company said.
The Motley Fool says the company announced it will shut down many locations in sparsely populated areas of the Midwest, and surprisingly the metropolitan areas of the Northeast.
Just last year the company was adamant it wouldn’t follow Macy’s in massive store closures, but, in 2017, with finances buckling from a lack of revenue, J.C. Penney has been forced to shed some less-than-ideal locations, according to The Motley Fool.
Looking ahead: In a news release, J.C. Penney’s CEO, Marvin Ellison, offers hope for the store’s dwindling sales. He says the company will roll out initiatives in smaller stores and malls. If these are successful there should be fewer closures in the future.
Wet Seal
Closing: Remaining 171 stores
Announcement made: January 26th
More information: A staple for teen fashion, Wet Seal’s last 171 stores will be closed in 2017, says The Wall Street Journal. After trying to save the chain in January 2015 by closing 338 of its 511 stores low attendance in shopping malls lead to Wet Seal’s end, according to Bankrate.com.
Fortune.com highlights the similarities between two retail corporations. Like Abercrombie & Fitch, Wet Seal’s fashion has been overshadowed by H&M and Forever 21. In January 2017, Wet Seal filed a Worker Adjustment and Retraining Notification (WARN) in California that laid out its plans to lay off 148 employees at the company’s Irvine headquarters. This document’s reasoning? “Closure permanent.”
Grinding to a halt: Wet Seal will not be moving forward after losing financial support. According to USAToday, Wet Seal filed for Chapter 11 bankruptcy in 2015, but two years later, found it was unable to persuade its fashion-forward teen customers to frequent the store.
BCBG Max Azria Global Holdings
Closing: 120 stores
Announcement made: January 18th
More information: According to Startribune, BCBG is hosting a liquidation sale that will last eight to 10 weeks. Similar to other companies, BCBG is closing unprofitable stores. Less than a third of their total stores, to be exact.
Moving forward: BCBG will adjust its approach to compete with the online market. It will realign its business model to remain relevant.
American Apparel
Closing: 110 stores
Announcement made: January 16th
More information: Forced to close all 110 U.S. stores, American Apparel is in financial ruin. After its intellectual property, and little else, was sold to Gildan Activewear for $88 million, the fallout for employees will be dire. 3,400 workers will be laid off, says Hollywood Reporter.
Moving forward: The Times gives customers hope to see their favorite American Apparel clothing again. It says these items may be available at Kmart, Target, and wholesalers.
Chico’s FAS
Closing: 120 stores
Announcement made: February 25th, 2015
More information: Bankrate.com states that after many years catering to women’s clothing needs, Chico’s FAS announced that from 2015 – 2017 it will be closing 120 subsidiary Chico’s stores. This is a small number compared to Chico’s FAS’s approximately 1,510 stores. It should lead to greater productivity, a news release says. As the company restructures, 240 jobs will be cut.
Moving forward: Chico’s FAS projects these closures will save $55.2 million by the end of 2017, and $38 million annually after job eliminations, according to PR Newswire.
Crocs Inc.
Closing: 160 stores
Announcement made: July 21st, 2014
More information: Known for its colorful, airy, clogs, Crocs Inc. announced it is closing 28% of its locations, says AL.com. While stores close, Crocs Inc. will also be getting a new CEO. Their current CEO Gregg Ribatt will be succeeded by Andrew Rees on June 1st.
Moving forward: With these store closings, Crocs Inc. is expecting an increase in revenue that can stabilize their finances and great leadership from their new CEO, who has been the company’s president since 2014, according to The Denver Post.
The Children’s Place
Closing: 200 stores, total
Announcement made: August 22nd, 2016
More information: The number of closures has increased from the originally quoted 125 in 2016 because the company felt there would be no significant improvements in the future.
Moving forward: While there will be many closures, The Children’s Place will have 1,061 stores remaining to sell children’s clothing.
HHGregg
Closing: 88 stores
Announcement made: March 2nd
More information: According to USAToday, HHGregg will close 88 stores, and three distribution centers, in 15 states. By mid-April, 1,500 employees will be laid off.
Moving forward: After closing 40% of its locations, HHGregg will have 132 left to cultivate.
The Limited
Closing: 250 stores
Announcement made: January 6th
More information: Providing women’s clothing in a variety of styles, The Limited announced it would shut down all 250 locations after filing for Chapter 11 bankruptcy in 2017. While closing these locations, 4,000 employees will be laid off, Business Insider states.
Moving forward: While all of The Limited stores have closed, their merchandise should be available online for their loyal customers.
CVS
Closing: 70 stores
Announcement made: December 15th, 2016
More information: A pharmaceutical chain with 9,600 stores in total, CVS announced it would be closing 70 of those locations in 2017. These cutbacks will be rolled out from 2017 – 2021 and should save around $3 billion.
Moving forward: These closures will allow CVS to provide shareholders higher returns for many years to come, says David Denton, CVS EVP and CFO, in an article published by Drug Store News.
Whole Foods
Closing: 9 stores
Announcement made: Feb 8th
More information: During a news release, this grocery chain announced it would be closing North American stores because low sales growth.
Moving forward: Whole Foods will add new stores to its 470 locations that span the United States, Canada, and United Kingdom.
Sears Holdings Corp.
Update:
Closing: 252 Stores
The retail is shuttering as many as 72 additional stores. These shutdowns come on top of 180 store closures announced earlier this year. Clearance sales at the locations will begin soon, with the stores closing by September. Sears announced in January it was closing 150 stores and, in May, added at least 30 more to the shutdown list. The latest list includes 16 Sears stores, 49 Kmart stores and seven auto centers.
Closing: 150 stores (108 Kmart, 42 Sears)
Announcement made: January 5th
More information: Sears’s and Kmart’s parent company, Sears Holdings Corp., will close 42 of Sears’s 702 locations, says Bankrate.com. These locations will be shut down because of low performance. In a news release, the company stated that many of these stores were underperforming, but in order to maintain local jobs and the hope for a possible turn around, they were kept open.
Kmart will also be impacted by Sears Holdings Corp’s decision to close underperforming locations. Bankrate.com notes that many of the Kmart locations will be closed because of significantly low sales in 2016.
Unlike J.C. Penney’s 14% decrease, these closures will make up approximately 7.5% of Kmart’s 801 locations.
To boost sales Sears Holdings Corp. has been pushing its ecommerce division, Shop Your Way, but revenue remains low.
Moving forward: The closures will reduce further debt, so Sears can get back on stable ground. Paired with selling Craftsman, and a $500 million loan, Sears’s business is looking brighter, every day, Bankrate.com says.
Macy’s Inc.
Closing: 68 stores, this spring
Announcement made: January 4th
More information: In 2016, Macy’s closed 100 stores. Though the new year has just begun, Macy’s has announced it will be closing another 68. The closures will include the historical Macy’s building that opened in 1902, and will displace 3,900 employees.
While closing 168 stores, Macy’s has announced they will be opening two locations in 2017. Further openings will include 30 Macy’s Bluemercury locations and 30 Macy’s Backstage locations, according to The Motley Fool.
Moving forward: After closing these 68 stores, approximately 660 U.S. locations will remain. Macy’s will improve its digital business and marketing tactics with the money saved, according to CNNMoney.
Closing: More than 150 Stores
Announcement made: March 24th, 2017
More Information: GameStop’s announced a 13.6% drop in global sales, to $3.05 billion, from a year ago. GameStop blamed weak sales of blockbuster video games release during the critical holiday season and “aggressive console promotions” by other retailers.
Moving Forward: Even though GameStop plans to close over 150 stores, they are still on track to open 65 Technology Brand Stores and 35 Collectibles stores.
Payless Shoes
Closing: 400 or 500 stores
Announcement made: March 25th
Moving forward: The original plan was for this chain to close down nearly 1,000 stores when the story of its bankruptcy first broke, but for now only about half of the original number will actually close. These are closing down as part of their debt restructuring deal. More stores could be closing in the future.
Staples
Closing: Estimated 460 stores in total; 350 originally, then and additional 48. They recently announced another 70 stores would be closing.
Announcement made: March 2014 originally, latest March 2017
Moving forward: Sales at the brick and mortar stores have been steadily declining over the years, especially as a result of such online retailers as Amazon. They tried to mitigate their damages over a year ago by trying to merge with Office Depot, another company that has been suffering. However, this merge was blocked by the Federal Trade Commission.
Family Christian
Closing: All of their stores.
Announcement made: February 2017
Moving forward: After a very bad past few years, the Christian retail chain decided to close all of their stores across the country. They were unable to make ends meet at their business and believed that this was part of God’s plan for their organization.
Gander Mountain
Closing: 32 stores
Announcement made: March 13th 2017
Moving forward: This company recently filed for bankruptcy protection and as a result, is closing 32 out of their 162 stores. These are set to close across 11 separate states. They cite heavy competition with online retailers as the reason for their declining numbers.
American Eagle
Closing: 150 stores
Announcement made: 2014
Moving forward: Back in 2014, American Eagle announced that they were starting a 3 year initiative that would result in the closing of 150 stores. These closings are part of a plan that will cut the company’s overhead while also tighten their inventory. They are also going to invest money in digital sales.
Eastern Mountain
Closing: 53 stores
Announcement made: April 2016
Moving forward: The parent company of Easter Mountain Sports, Vestis, filed for bankruptcy, where they showed that they were around $500 million in debts while only having less than $50,000 of assets. This company is suffering from the expansion of competition like REI and Dick’s Sporting Goods.
Radio Shack
Closing: 1,784 stores
Announcement made: March 2014
Moving forward: Many of the stores that were not closed were turned into Radio Shack leased stores or became Sprint locations, where Radio Shack branded products are still being sold. The closings were brought on by a bankruptcy filing. There may be even more stores closing in the future as sales are still declining.
Michael Kors
Closing: 100-125 stores
Announcement made: May 2017
Moving forward: Following dismal quarterly sales, the fashion brand announced that they will close 100-125 stores. The company had 827 retail locations as of April 1. The store best known for women’s purses and accessories told analysts that total sales fell 11.2% to $1.06 billion and same-store sales plunged 14.1%.
Michael Kors, among many of its peers in the retail space, has been hurt by slow sales and limited foot traffic as more shoppers purchase online.
Gymboree
Closing: 375-400 stores
Announcement made: June 2017
Moving forward: Gymboree said it expects to close 375 to 450 of its 1,281 stores. Gymboree employs more than 11,000 people, including 10,500 hourly workers. The retailer said it hopes to cut $1 billion of its $1.4 billion in debt and to win approval for its plan by Sept. 24.
Gymboree, like many of its peers in the retail space, has been hurt by slow sales, lower foot traffic and online purchases.
Rue21:
Closing: 400 stores
Announcement: June 2017
Following suit with other teen retailers, American Apparel and Aeropostale, Rue21 filed for bankruptcy protection in May. Rue21 said it would close approximately 400 stores out of a total of 1,179 stores. The retailer was asked the court’s permission to borrow $175 million in additional financing. The company was hopeful for its business to improve after the changes. Still, the outlook remains dim for a mall-based teen retailer like Rue21 and other like them.
Teavana (Starbucks)
Closing: 379 Stores
Announcement: July 2017
Starbucks announced that all 379 Teavana stores will be closing. These stores which are primarily based in malls across the country — have been “under performing. The move will impact 3,300 workers. Most locations will shut down in the first of half of 2018. People employed at Teavana locations will be invited to apply for jobs at Starbucks locations in order to preserve their jobs.
Toys R Us
Closing: 382 Stores
Announcement: January 2018
In January of 2018, Toys R Us announced that they would be shutting down 182 stores, impacting 4,500 workers. Only a month later, the Wall St. Journal reported that number could include an additional 200 stores. In total it could mean up to 382 stores and nearly 10,000 workers could be impacted. The company operates about 800 stores in the United States. The company’s biggest problem stems from its filing last year for Chapter 11 bankruptcy protection, after its private equity owners left it saddled with $5 billion in debt.