What’s the deal with all these retail closures?
This year was a rough one for some major stores. The reasons for this year’s more than 4,600 retail closures are varied, ranging from some operators closing underperforming locations to the bankruptcy of a major retail chain.
Merchants sometimes blamed rising theft for their rationale in closing some locations. But the sad reality is that several trends are weighing on brick-and-mortar businesses against the backdrop of the retail closures. Americans continue to shift towards online shopping.
Pharmacy chains have struggled with lower reimbursement rates and competition from Amazon and Walmart.
At the same time, dollar stores have fared better as inflation-weary consumers seek discounts or are cutting back on some purchases, such as electronics and jewelry. So, is your favorite store going out of business? Continue reading to find out!
Gap
According to Forbes, consumers are less interested in Gap’s apparel. They now consider it plain and overpriced compared to fast fashion brands like Zara.
Gap Inc. announced that it would shutter 30% of its namesake and Banana Republic stores in North America by the end of the year to have a healthier fleet of stores. The retail closure will move most of the stores out of malls.
President and CEO Mark Breitbard said in a statement that Gap has been overly reliant on low-productivity, high-rent stores. He said they were focusing on addressing the real estate problems and accelerating their shift to a true Omni-model.
The clothing conglomerate plans to open up to 40 more Old Navy stores and 100 more Athleta stores in the coming years.
Godiva Chocolatier
Unfortunately, there’s a bittersweet end for this Belgian chocolate maker, which closed all its brick-and-mortar stores across North America recently. Godiva had announced grand plans in 2019 to open up 2,000 new cafes worldwide, including over 400 in North America.
But COVID-19 completely destroyed its in-store foot traffic. And sadly, even after the pandemic, demand for the in-person shopping experience offered through Godiva’s locations has waned due to its acceleration of changes in consumers’ shopping behavior.
Don’t worry about this retail closure, though. You’ll still be able to grab your favorite truffles. The company still maintains its online presence and markets its products through retailers like Costco and Target.
The Children’s Place
The Children’s Place has been selling clothing for kids for more than 50 years. But parents stopped buying the latest fun fashions when so many were learning remotely.
The company cut down its “mall-based, brick-and-mortar portfolio” in North America after first-quarter financial results revealed net sales had dropped almost 40%. The situation hasn’t gotten better since the pandemic ended, either. It may lead to even more retail closures.
Best Buy
Despite a growth in online sales, Best Buy doesn’t seem to want to use that money to finance its brick-and-mortar stores. In fact, it has been gradually facing some serious retail closures.
In an earnings call in February 2021, Best Buy explained that it closed 20 locations in each of the previous two years and expected to close a higher number in the coming years. It also planned to add 2,000 part-time positions and laid off 5,000 employees.
The company said it’s trying to stay nimble by reducing the length of its lease terms, meaning that any future cuts could be abrupt.
JC Penney
This respected department store chain has been around for nearly 120 years but has suffered plenty of humiliations.
The company filed for bankruptcy in the early part of 2020, having endured years of declining sales before the lockdowns even started, and planned to close almost 30% of its locations.
That’s when mall owners Brookfield Asset Management Inc. and Simon Property Group pounced and bought JC Penney, saving it from financial ruin. Yet, a lot of retail closure are still happening at full speed ahead.
GameStop
A few years back, a legion of investing pranksters made headlines worldwide by sending GameStop’s stock to the moon.
But they didn’t stop there. The world’s largest gaming retailer has been shutting down hundreds of stores over the last couple of years, and recent hijinks haven’t changed their plans. The company was on track to close 1,000 locations by April 2021.
The company hasn’t made any significant announcements since then. But observers have reported more and more clearance sales nationwide, so the end isn’t near yet.
And even though the gaming industry was booming during COVID-19 due to people avoiding public spaces, the convenience of digital downloads has been a success, meaning GameStop is facing many retail closures.
Michaels
Crafty shoppers who kept an eye on the headlines could catch some heavily marked-down scrapbooking and art supplies in recent years.
And even though the arts-and-crafts retailer didn’t make any formal announcements, news outlets have reported many other retail closures nationwide, including in South Carolina and New York.
Then, in a turn of events after its stock price had bounced back from the worst of the COVID crash, Michaels retreated from the public markets, getting bought in a $3.3 billion deal with Apollo Global Management.
It’s the company’s second time to go private after being acquired by another firm in 2006 before going public again in 2014.
Fossil
Fossil Group, a watch and handbag designer known for brands like its namesake Fossil and Zodiac Watches, reported significant annual losses in recent years. And the truth is that it’s tough to keep acting like it’s business as usual after you lose $96 million.
The good news, though, is that the company plans to take advantage of lease expirations and up its store count by 15% to 20%.
That’ll allow it to strengthen its supply chain, improve inventory management, and “make Fossil a more agile, nimble and profitable company, avoiding retail closures.
At the same time, Fossil anticipates digital sales will make up most of its sales in the long run and is accelerating its online shift.
Are any of your favorite stores on this list of retail closures? Please feel free to share your thoughts with us in the comments section below. And if you liked this article, we highly recommend you also read: Top 10 Most Budget-Friendly Supermarkets in the US
65 Responses
I am so sorry that Penney’s is closing. I have shopped there since I was in high school in 1964. Maybe they won’t close the ones in Delaware so quick. JC Penney is a staple in my house (Delaware) and would be a terrible thing if any of them closed up here. I love Penney’s.
Thank you and what an unfortunate situation, are any of these stores closing in Columbus, Ga? Thank you.
So sad…..
I miss going shopping and being able to check quality of products
Amazon Is Taking All The Business From Retailers And All The Money Is Going To China.
We have purchased $500 Gift Certificates from Best Buy, a Fossil purse, etc., matte frames for Photo Club photos at Michaels and very few purchases from the other aforementioned stores.
Some of these stores should be closed, they offered nothing but high prices.
pandemic ended foot traffic stores;
Do not want Best Buy to close. It is needed.
GIVE ME A STORE TO RUN AND I WILL KNOCK YOUR SOCKS OFF. THIS IS NOT HYPERBOLE!
With all the store closures and people laid off, how come it doesn’t reflect in the unemployment stats?
I haven’t shopped in any of these stores in years
. I’m an online bloke. A lot of them are so backwards that I can’t believe they survived this long.
Hear, hear!
Amen!
Didn’t know about acquisition JCP but did see the lack of service and adherence to their own values.
SEES? GADIVA at TARGET is just a
problem of TARGET not marketing properly by putting items at the bottom of the shelves and drying out!
Shoppers have to think quality!
It’s sad that we are losing so many brick and mortar stores. Have you tried to buy a pair of shoes online? I have and have had to send back almost every pair I’ve ordered for lack of a proper fit. Besides this, shopping used to be a fun event! I’d take my daughters to shop and we’d be gone all day, stop for lunch and go back to continue our shopping. I hate online shopping, you can’t see or feel the quality of the garment online nor can you try it on and see what you’re getting. I buy much less now that I’m getting forced to buy online. The good days of shopping are gone. I’m not joining the online revolution. It’s no wonder our Country is wearing junk clothing all made overseas, tight yoga pants, pajama bottoms on men in public and generally very poor looking. Look back at some old photos of your family and see how nicely they dressed! The days of shopping for quality goods are gone. It’s sad.
This is so depressing. Soon we will be
Left with nothing but cheap junk
from China and Third world countries
to choose from.. Gone will be the days
of shopping in really lovely stores and
having a nice lunch with friend. It will
be the Dollar Store and Drive thru at
Taco Bell. Sad
JC Penney SHOULD Stay OPEN !!!!!!!!!!!!!!!!!!!!!!!
I miss Abraham & Strauss most of all. I also miss Lord & Taylor…….Please tell me NO regarding Macys!
Do not close Gap, & Children’s Place…there will be no where left to shop for kids clothes…not everyone likes to shop online….its a darn shame!!!
There is no money for Shopping because we are shopping for other peoples or dogmas food. My sundries were passed out also. Roomies haven’t shopped for their own food. The fridge is always empty stick and bone to eat the neighbors grocery lifting at 1:20 A.M. Is your front door pickable.
lOVE jc pENNIES PLEASE KEEP THEM OPEN
I’m not a big on line shopper. I PREFER Togo onto a store to make my purchases. The hands to check quality and how it is made are a big part of my shopping experience.
It also gets me out of the house and it gives the freedom to make new friends and spent time talking as well as doing something we both in joy.
If I were the POTUS, I would set up a commission to study the negative effects of technology on shopping, learning, AI, and so on. As I see it, technology is destroying us, and in one or two generations…good night.
When will this go into effect
I will miss Best Buy and Michaels.
I will miss Michaels as I buy all my art supplies there. Where are artists suppose to shop for supplies? I’m not an on line buyer.
We all have our favorite “go to” retailers. Many people fail to support them through regular purchases, instead looking around for bargains. I’ve often been disappointed in the flimsy quality of bargain items. Then we wonder why the “good” stores are gone!
It will be disappointing to see Best Buy close their stores. I like to see, touch, feel and have demos of their products. I have never bought a television or iPad online.
As I see it Amazon is going to be the only place to buy most things in the near future and their rules will change drastically when that day comes. I truly hope the discount stores, like the fast food restaurants during the covid shutdown, will survive. I also hope owners will have more sense when big companies come along to buy the discount stores, owners will have enough sense not to sell. This country is in a mess.
Never even heard of some of these stores.
Please don^t close
Will the government turn those abandoned buildings into homes for the homeless and save some money and avoid more land developments?
This is so sad for stores that have been around for 30-40 years and now have to close . And part of the problem is The Biden Administration inflation is so bad a majority of people don’t have extra to shop it takes everything we make to get by on I for one can’t even buy extra at the grocery store like I use too I have to get exactly what I NEED sometimes that’s a challenge. Everyone needs to vote Trump
JCPenny is a great family store. It would be sad to see them go.
Thanks to president Joe Biden and vice president pamla harries and rest of Democrats that came up lies to win their election. I hope for the rest election the Republicans she win. Because they are for the people of USA. Democrats is for them self to make more money for self not for people of USA. Please if you like to live and save money, get rid of inflation vote Republican not Democrats. The elephant save money. Donkeys (jackass’s) gets money for their self.
The closing of K-Mart stores affected me the most. I loved K-Mart.
S
SAD NEWS.
Lot of my favorites.
These were good stores to shop.
Always a lot of customers inside.
Good stores to work for.
JCPennys has been n our Family for Decades,and we Absolutely Love them.
My Father n Law Retired from there year’s ago.
And Fossil. They’re the “ONLY PURSE” I choose to carry. Thier Quality it’s unmatched n my opinion,and I Love the Key Emblem.
As time change either u change with the times or get left behind.
We All must learn to adapt for what’s best for us All.
I’m Grateful for what your Businesses have provided for our Families over all these year’s.
We Love coming to Shop.
But if online is what fits the change best.
You’ve gotta do what you gotta do.
Much Love Light’n Harmony Always ❣️❣️❣️
So many stores that I use to,shop at are closing. This is not good
This is sad. It seems like the marketplace has moved to almost online.
Sad. Penneys is one of my favorite stores for the prices and rewards though I am not a heavy shopper. Would very much hate to see them go. I like Best Buy too, especially for their geek squad. They have been very helpful. What would we do if we could not get the technical assistance for our phones and laptops?
Sad Sam Ash closed too
I don’t shop at any of those. I m 73 and rarely shop any more except for medications and food!
SOME OF MY FAVES ARE ON THE LIST FOR CLOSING. I AM HURT & WILL LOOK FAST & HARD FOR REPLACEMENTS.
shop lifting is a very serious problem, a shop lifter should be fined { big } plud jail ,no matter who is the hell he is ,they should use guards ,cameras,prices goes up because of those shop lifters .
NOT JC PENNEY!!!!
So very sad but not unexpected. It was wonderful while it lasted. Especially at Christmas with all the window displays and the decorations in the store itself. Just to wander on the mall or walk down the street to look in windows and to see and touch the merchandise. Yes, I’m a fifties gal
Is this due to no money around or shopping on’line,?
I do not shop at any of these stores.
I am so sorry that so many retailers are having to close down. i am from the greatest generation, and prefer in-store shopping. I am not fond of technology controlling everything. I like to see and feel what I am buying. On-line shopping most frequently requires exorbitant shipping costs, time and effort to return items if needed and maybe re-shop. Not to mention the disappointment often experienced and the added costs.
I certainly understand the culture change etc. but it makes me very sad.
Many of the ones named have been favorites of mine throughout the years. I’m deeply saddened to learn of the closing.
In light of all that is going on in the world, its sad to think of all these wonderful places shutting down. It is so sad! Buy on line has not helped this situation. The United States is going through a lot. It’s sad to go by and see the closed business’s. We are already feeling the affects. I feel for our grandchildren and their grandchildren. Those are the people that will really feel it. I am praying for America and all of the people this Nation represents. Pray, pray, pray!!! Only Jesus! Please, if we don’t pray for America we can hardly ask God for a miracle, can we??? It is our job to touch heaven for all that is going on right now. Please, pray that God will hear and answer our prayers for America. She needs it bad. Please Heavenly Father hear our prayers for American and her people.
The digital age is hear for the long run…hope the best for all the retailers… and that they put there trust in G-d doing the right thing in terms of mark-up pricing to benefit consumers .
It is sad to see so many stores closing. I don’t like to buy on line, I perfer going into the store and shop. Michele, JC Pennys break my heart. Sear is gone and what they on offer on line is not the same. Tha is really sad.
I am NOT happy about Best Buy, Michael’s and JC Pennys
Men die. Well managed companies live forever
I don’t go shopping. I buy online . Not Amazon . My usual retailers, but online . It’s easier and faster and cheaper. Seems it’s the way to go.
Kenney is always my first choice for bath and kitchen towels and other
supplies
They are good quality, ample choices and reasonably priced.
Hope they stay around.
Illie
Hard to make accurate color choices online.
.
Personally, I like to shop in stores. Touching and feeling the quality of the merchandise is a necessity.
I have gone back to making everything, clothes/home decorations/ paintings/bedding/drapes/ shower curtains,…etc. The problem now is that they are closing most of the fabric stores. They closed Hancock Fabric stores, and they had one of the best fabric selections around. Now I see that they are closing Joann’s. They are more into crafts than fabrics. I am not into buying fabric online.
As for clothes, a lot of items you buy are based on Asian sizes. When you are 5′ 10” tall, that leaves a lot to be desired.
I will miss going to shop at the stores it’s nice to buy it and bring it home the same day
I see everyone sad and complaining but it’s the consumers fault for being lazy and relying on the online shopping. The only way to support is to stop shopping online and physically go to the stores as we have done so many years. Doesn’t have to be the above mentioned stores but if we continue to shop only online they will all be gone. That my friend is sad. There are millions of people involved in these closings and that means they will be unemployed hence creating more problems. I personally go shop at stores and local businesses as I am not a fan of online shopping. I only do online when the store i want something from no longer has a physical building anymore.
Sad about Bed Bath & Beyond, JC Penney, Michaels & Best Buy.
Where are these peoples employed , Quite SAD . AND OUR PRESIDENT is NOT HELPING……
Its a real shame how we are in a recesión and peo pile will not see it coming when in truth
It’s here all ready so stick to the basics shelter food transportation livestock