By Charis Rebecca Brown, clarkhoward.com
No doubt about it, it’s a rough ride in retail right now. With the rise in online shopping, discount shopping becoming the norm and the middle class shrinking, brick-and-mortar retail is doing quite a bit of downsizing. In fact, there are about 2,500 store closings in the works across the U.S.
Here are a 10 major retailers that are planning to close 100 stores or more.
Number of store closings: 154
Aéropostale, the teen clothing retailer has announced the closure of 113 U.S. locations and 41 stores in Canada.
The company said in a statement the plan is, “to right-size their operations by closing unprofitable stores. Such closures will help stem the Debtors’ significant cash burn, increase the Debtors’ liquidity, and allow the Debtors to focus their reorganization efforts around a smaller footprint of more profitable store.”
Number of store closings: 150 over three years
The company cited mall traffic as one of the problems as comparable same-store sales dropped 10%, according to Reuters.
Number of store closings: 120 stores between fiscal 2015 and 2017
Chico’s FAS, the parent company that operates Chico’s, White House Black Market, and Soma said it would cut 240 jobs and close 120 stores between 2015 and 2017. According to New-Press.com, the job cuts and store closings are part of the company’s organizational realignment.
Number of store closings: 200 between fiscal 2015 and 2017
Resulting from a soft outlook, the children’s store plans to downsize quite a bit, and already began the downsizing process back in 2015. But, the company is encouraged in its recent sales and margin gains.
5. Finish Line
Number of store closings: 150 by 2020
“These stores that we closed and will continue to close are stores that are low-volume stores for us that have been on the declining sales and profit trends for years,” said CEO Sam Sato in the earnings call.
Number of store closings: 250
Unable to recover from an ill-advised merger two years ago, parent company Tailored Brands Inc. is downsizing.
“We have determined that outlet stores, which collectively were not profitable, are not sufficiently differentiated enough from our core offerings and have not resonated with our customers,” CEO Doug Ewert said in a statement.
Number of store closings: 400
As a part of the Office Max/Office Depot merger, Office Depot had announced it would close at least 400 stores by the end of 2016, and by the end of this year, it should be at its goal. Last year, the company closed 181 stores, while it closed 168 stores in 2014. This year it plans to close 50 stores.
Number of store closings: 200 between 2015 and 2017
“After a rigorous analysis, the company has identified additional opportunities for cost savings, primarily in its Retail Pharmacy USA division,” the company said in a press release. Significant areas of focus include plans to close approximately 200 USA stores; reorganize corporate and field operations; drive operating efficiencies; and streamline information technology and other functions.”
Number of store closings: 154, but opening 300 worldwide
“Actively managing our portfolio of assets is essential to maintaining a healthy business,” said CEO Doug McMillon in the press release. “Closing stores is never an easy decision, but it is necessary to keep the company strong and positioned for the future. It’s important to remember that we’ll open well more than 300 stores around the world next year. So we are committed to growing, but we are being disciplined about it.”
Number of store closings: 100
“You’re seeing these kind of wild swings in currency,” said Chief Executive Officer Blake Krueger. “Most of the world, virtually all of the world, buys its footwear in the U.S. dollars and sells on local currency. So, you can imagine a little bit of a disruption that can happen when the U.S. dollar strengthens 20, 25, 30 percent over a period of only two years.”
The company has 15 brands and a global workforce of 6,000 employees.
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