It shouldn’t come as a total surprise to hear that the retail sector has been crumbling as of late. As more Americans start to do their shopping online instead of at a store, conventional retailers have death knocking at their door. While some are being forced to shrink in size, others are going out of business altogether.
2017 has been a year of major store closings – and the year isn’t even over yet. Below is a list of 10 retailers that are closing hundreds of stores in 2017.
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Gymboree
Gymboree has plans to close more than a quarter of its kid’s clothing stores as it tries to take on the persona of an “evolving retail landscape.”
On June 11, Gymboree filed for Chapter 11 bankruptcy protection. And in July, the company disclosed that it was shutting down 350 of its Gymboree and Crazy 8 locations.
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Payless
In April, Payless Shoesource filed for Chapter 11 bankruptcy protection. The company said that it would be closing nearly 400 of its weaker stores. In May, the company added to that total and suggested that it could shut down 408 additional locations.
Founded more than 60 years ago, the discount footwear chain has now found itself caught up in the world of online competitors.
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RadioShack
RadioShack, an electronics chain, has completely disappeared from the retail map. A company that once operated 7,300 stores has disclosed that it shut down more than 1,000 of its remaining locations over the Memorial Day weekend. That leaves just 70 stores in operation.
Founded in Boston in 1921, the retailer says the closings continue a move from stores to RadioShack.com
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J.C. Penney
By mid-2017, J.C. Penney will be shutting down as many as 140 of its department stores – up to 14% of the total. The mall mainstay will be offering 6,000 employees early retirement.
According to Marvin Ellison, the chairman, and CEO of the company, shutting down stores will let Penney “effectively compete against the growing threat of online retailers,”
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Macy’s
After spending the majority of last year shutting down its stores, Macy’s started 2017 by disclosing its plans to close 68 additional locations. This includes a store in downtown Minneapolis that opened in 1902. As a result of the closures, Macy’s predicts that 3,900 jobs will be lost.
In a news release, Macy’s CEO Terry Lundgren stated, “We continue to experience declining traffic in our stores.”
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Abercrombie & Fitch
Abercrombie & Fitch – a company that epitomized cool in the 1990s and early 2000s – announced that it will shut down 60 of its U.S. stores in 2017 as their leases expire. To put that into perspective, that’s 60 out of 285 stores worldwide.
Regardless of the closures, Fitch Ratings, a research group, forecasts that Abercrombie will continue to struggle.
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Michael Kors
This one might come as a surprise to people. In May, luxury fashion brand Michael Kors disclosed that it would be closing up to 125 stores over the course of two year period.
What is the reason behind the closure? Kors chairman and CEO John Idol says the company is in “a difficult retail environment” and faces pressure from price-cutting competitors.
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CVS
In an attempt to improve efficiency and lower overall costs, pharmacy giant CVS announced that it will close 70 stores in 2017, out of its more than 9,600 stores.
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The Children’s Place
Unlike the initial Michael Kors shock, retail investors saw this one coming. In March 2015, the Children’s Place, which is a clothing chain for kids, said that it would be closing roughly 200 stores through 2017.
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BCBG
Yet another store that is going to bankruptcy court in 2017 is women’s apparel retailer BCBG Max Azria. The company filed for Chapter 11 in March after disclosing that it would shut down 120 of its locations.
Marty Staff, Acting Interim CEO, says BCBG is trying to address “the shift in customer shopping patterns and the growth of online shopping.”
Featured Image: twitter
