Top 8 Retailers That Are Suffering and Closing the Most Stores
March 17, 2014 Leave a comment
With the increase of online retailers (Amazon really did a number on retailers) and slow economic activity, some retailers have been suffering. Weakened companies cannot afford the real estate and personnel costs for certain stores that just aren’t bring in profits. A great example is Radio Shack’s recent decision to close more than 1,000 stores.
Radio Shack is of course not the only one to close several stores. Barnes and Noble was one of the first companies affected by Amazon, along with Borders, which of course has already gone out of business. Amazon accounted for 44% of book sales in 2012, according to Bowker, a bookseller consultancy. Staples is a recent example of a company losing business from Amazon. Following two years of sales declines, it was announced that it will close 225 stores by 2015, 12% of it’s total store count.
8 retailers that are closing the most stores:
- Abercrombie and Fitch – While this store was very popular during my time as a teen, the “preppy” look isn’t as big anymore. In its most recent quarterly report, the company said it had closed 10 stores by November of last year and would close another 40 stores by the end of its fiscal year.
- Barnes and Noble – Barnes & Noble announced plans to shut a third of its stores over the next 10 years. People were sad (including me) when the they chose to close its one-time booming store in New York City this winter.
- Aeropostale – Again like Abercrombie, Aeropostale is not as popular with teens today. This store is the in the middle of closing 40 to 50 stores in 2014, and plans to close around 175 stores in total over the next couple of years.
- J.C. Penny – When their sales started to decline, the company brought in a new CEO, Rob Johnson. While they thought this change up and store makeover would help, sales got even worse. The company recently announced it would be shutting down several stores.
- Office Depot – Office Depot actually merged with their competitor, Office Max in November. While this was helpful, they are still cutting back jobs and stores. The company had 1,912 stores at the end of its latest fiscal year, including 823 OfficeMax stores. Since the merger, the company has closed 15 of its Office Depot stores and seven OfficeMax locations.
- RadioShack – While RadioShack is working on updating itself (did you see the Super Bowl commercial?) it may be too late. A previous attempt at rebranding itself as “The Shack” never caught on, and the retailer recently announced it would close 1,100 out of its more-than 5,000 stores.
- Sears – Sears has been declining in sales since the merger with Kmart in 2005. About 300 stores have been closed since 2010, and Cowen analyst John Kernan recently noted that he expected Sears Holdings to close an additional 500 stores as well.