Trumponomics Could Result In 12k Store Closings (#GotBitcoin?)
More store closings coming: An estimated 12,000 shops could close by the end of 2019. Trumponomics Could Result In 12k Store Closings (#GotBitcoin?)
There will be absolutely zero entry-level jobs for young (or old) people.
The retail apocalypse isn’t showing any signs of slowing down.
Eight months into 2019, there have already been 29% more store closings announced than in all of 2018, according to a new report from global marketing research firm Coresight Research.
Based on Coresight Research’s figures, retailers’ earnings reports, bankruptcy filings and other records, more than 7,600 stores are slated to shutter this year and thousands of locations already gone.
Bankrupt footwear company Payless ShoeSource, which closed its remaining U.S. stores in late June, accounts for about 37% of the closings.
The “going-out-of-business” sales and liquidation of other brands is expected to continue. Coresight estimates closures could reach 12,000 by the end of the year, the report said.
Coresight, which has offices in Manhattan, London and Hong Kong, tracked the 5,864 closings in 2018, which included all Toys R Us stores and hundreds of Kmart and Sears locations.
Plus-Sized Retailer Avenue Will Be Closing All 222 Stores
Another Plus-Sized Women’s Retailer Will Be Closing Its Doors
Avenue Stores LLC, owned by private-equity firm Versa Capital Management, has decided to shutter all 222 of its retail locations, Hilco Merchant Resources said in a statement announcing the closures. The company, which operates in 33 states, has hired Hilco and Gordon Brothers to oversee inventory sales.
Versa, Avenue, Gordon and Hilco didn’t reply to requests for comment. Calls to stores in New Jersey, New York and Florida directed Bloomberg to the corporate office in Rochelle Park, N.J., where calls weren’t answered.
Retail Dive And Dow Jones Reported On The Closures Earlier
The specialty plus-sized apparel industry has been under pressure as online rivals like Amazon.com Inc. and big-box retailers from Walmart Inc. to Target Corp. increasingly compete in the space. Plus-sized women’s retailer Fullbeauty Brands Inc. filed for Chapter 11 earlier this year before winning court approval for its plan to restructure the company in less than 24 hours.
Sears and Kmart Store Closings List: 21 Sears and 5 Kmart locations to close in October
Walgreens Store Closings: Drugstore chain plans to close 200 U.S. stores, according to new SEC filing:
The record year for closings was 2017, with 8,139 shuttered stores, Coresight found. This included an earlier round of Payless closings, the entire HHGregg electronics and appliance chain, and hundreds of Sears and Kmart stores.
The pain is expected to continue into future years, according to an April report from UBS Securities.
UBS analysts said 75,000 more stores would need to be shuttered by 2026 if e-commerce penetration rises to 25% from its current level of 16%.
A separate analysis by UBS said tariffs on Chinese imports could put $40 billion of sales and 12,000 stores at risk.
“The market is not realizing how much brick & mortar retail is incrementally struggling and how new 25% tariffs could force widespread store closures,” UBS analyst Jay Sole wrote in the May report. “We think potential 25% tariffs on Chinese imports could accelerate pressure on these company’s profit margins to the point where major store closures become a real possibility.”
Charming Charlie Store Closings: Retailer going out of business, will close all 261 stores in Chapter 11 bankruptcy
Closing All Locations:
Thousands of locations have already closed this year with the final Payless stores finishing their liquidation sales in June. All Charlotte Russe stores closed in April.
Payless ShoeSource: 2,589 (includes 248 Canada locations and 114 smaller-format stores in Shopko Hometown locations).
Gymboree/Crazy 8: 749
Dressbarn: 649. Here are the locations closing in July and August.
Charlotte Russe: 494;
Charming Charlie: 261
LifeWay Christian Resources: 170
Henri Bendel: 23
E.L.F. Beauty: 22
Topshop: All 11 U.S. stores
Barneys New York Bankruptcy: Luxury retailer files for bankruptcy and announces 15 closing stores.
Perkins, Marie Callender’s Bankruptcy: Restaurant chain filed for bankruptcy after closing 29 locations
Some of the announced closures may carryover into 2020, which was the case with several closings announced in late 2018 such as Lowe’s, Sears and Kmart. Gap Inc. announced Feb. 28 it would close roughly 230 stores over two years. Some retailers also are opening new stores while closing locations including Bath & Body Works and Abercrombie & Fitch.
GNC: 192 stores closed in first six months of year; up to 900 over the next three years.
Family Dollar: As many as 390 stores
Fred’s: 442; the company said July 12 it would close another 129 stores.
Chico’s: 74, but 250 over the next three years.
Gap: Roughly 230 in next two years
Foot Locker: 165, total includes closings outside of the U.S.
Signet Jewelers: The parent company of Kay, Zales and Jared said it would close another 150 stores.
Pier 1 Imports: 57, but up to 145 could close.
Ascena Retail: 120
Destination Maternity: 117
Sears: 21 more stores will close in October; 72 stores closed earlier this year
Victoria’s Secret: 53
Vera Bradley: 50
Office Depot: 50
Kmart: Five more stores will close in October; 48 stores closed earlier this year
Party City: 45
Sears Hometown and Outlet Stores: 45
The Children’s Place: Up to 45
Z Gallerie: 44
Stage Stores: 40 to 60
Bed Bath & Beyond: 40
Abercrombie & Fitch: 40
Francesca’s: At least 30 stores
Build-A-Bear: Up to 30 over two years
J.C. Penney: 27
Bath & Body Works: 24
Southeastern Grocers: 22
Saks Off 5th: 20
J. Crew: 20
Barneys New York: 15
Whole Foods: 1
Calvin Klein: 1
Pottery Barn: 1
Source: Coresight Research; staff research
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