Is your favorite store on the chopping block? Many retailers are struggling to find the right balance between brick-and-mortar locations and digital sales. Please read below to see what the lasted research reveals.
The so-called “retail apocalypse” continues as massive U.S. retail chains, including Payless, Gymboree, Gap, and Dress Barn announce 7,888 stores closures this year.
That number easily beats the 5,844 total store closures in all of 2018.
The record year for closures was 2017, with 8,139 shuttered locations. If the current frenzied pace continues, however, store closings could hit 12,000 by year-end.
Amidst the carnage, some retailers are flourishing. Off-price players like T.J. Maxx, Ross, and Dollar stores are expanding their footprints.
Payless is closing 2,100 locations, accounting for a huge chunk of the overall retail closings. It could mark the biggest-ever retail liquidation in the U.S. by store count.
The liquidation of Gymboree, and Shopko adds 749 and 371 closures, respectively.
Dress Barn will close all 650 locations and Charming Charlie’s will shutter its 261 stores, after each filed for bankruptcy protection.
Retailers are closing underperforming locations as they seek the right mix of bricks-and-mortar and digital retail by closing stores and reinvesting in other locations.
Walgreens will close 200 stores and CVS will shutter 46 locations as both say they’re rightsizing.
Pizza Hut announced it could close up to 500 dine-in locations and concentrate on its carry-out and delivery services.
Dollar Tree will close as many as 390 Family Dollar stores and convert some 200 other locations to Dollar Tree stores.
The Gap is closing 230 stores over two years and spinning off its more successful Old Navy brand into a separate company.
Party City is shutting down 55 stores, targeting locations near other Party City stores to free up cash to expand into underserved markets.
Victoria’s Secret is shutting 53 stores, Office Depot/Office Max another 50, GNC is closing 233, and 900 by the end of 2020. Chico’s announced 74 closures.
Bankrupt Sears continues to struggle. After closing hundreds of stores, it announced it will close another 21 Sears and five more Kmart locations in October.
And more stores are likely on the chopping block with fears of a recession looming and a tariff war. A report in May by UBS said tariffs on Chinese imports could put U.S. retail stores and sales at serious risk.