2017 is a rough year in retail, and many stores are downsizing or closing up for good.
The rise of retail giants like Amazon and Walmart has made it tough for many retailers to survive.
Several companies which once enjoyed stability and growth are collapsing.
To keep up with current competition or stave off insurmountable debt, many are expanding online availability while closing up brick and mortar stores across the country. Others have no other choice but to close their doors for good.
Mounting debt is crushing most retailers struggling for business in a world with supposedly quick and easy Walmart or Amazon purchases.
Just this week, Toys R Us had to file for bankruptcy. 1,600 Toys R Us stores remain, and, for now, the company says it isn’t making any changes. Other companies, meanwhile, have made announcements that they can no longer avoid closures.
These are companies that brought jobs to communities throughout the country. Customer service, shipping, warehouse and stock, cashiers, and other positions will be hurt by the closings, in a country where too many people are already out of work.
These businesses boosted community markets, filled in holes left by failed industries, and brought service to people who wanted to actually touch their purchases before buying and talk to a real person about the goods.
Unfortunately, many customers have left them behind.
A list by Fox Business outlines 20 companies that are either going under, or closing up several stores as a future of bigger-box and cyber-retail takes over.
The full list is posted below, from Fox Business:
Abercrombie & Fitch
Facing declining sales, the once-prominent fashion brand announced last March that it would close 60 of its U.S. stores with expiring leases during its 2017 fiscal year. The chain has closed hundreds of store locations over the last few years while placing an increased emphasis on online sales.
The New Jersey-based women’s footwear company filed for bankruptcy earlier this month and announced plans to move forward with a “significant reduction” of its retail locations. While it’s unclear how many of Aerosoles’ 88 locations will be affected, the chain said it plans to keep four flagship stores in New York and New Jersey operational, NJ.com Opens a New Window.reported.
A fashion brand known for its edgy offerings, American Apparel shuttered all of its 110 U.S. locations earlier this year after filing for bankruptcy. The brand has since been acquired by Canada-based Gildan Activewear, which acquired its intellectual property in an $88 million deal.
The Los Angeles-based brand listed liabilities of more than $500 million when it filed for bankruptcy last February. The chain closed 118 store locations nationwide this year, though more than 300 remained in operation under a company-wide reorganization.
The women’s apparel chain closed all of its remaining 168 stores by last May, days after it said it was exploring “strategic alternatives for the company” amid plunging sales.
The Children’s Place
A fixture at shopping malls, the children’s clothing retail said it will close hundreds of store locations by 2020 as part of a shift toward digital commerce.
The pharmacy retailer said it would close 70 store locations in 2017 as part of a bid to cut costs and streamline its business. CVS still operates thousands of stores nationwide.
Guess announced plans to close 60 of its struggling U.S. store locations in 2017 as part of a plan to refocus on international markets.
The kids clothing retailer confirmed last July that it would close 350 of its more than 1,200 store locations to streamline its business and achieve “greater financial flexibility,” according to CEO Daniel Griesemer.
The electronics retailer said it would close all of its 220 stores and lay off thousands of employees when it failed to find a buyer after bankruptcy proceedings.
The department store chain is closing 138 stores this year while restructuring its business to meet shifting consumer tastes. The retailer also announced plans to open toy shops in all of its remaining brick-and-mortar locations.
After a brutal holiday season in 2016, the clothing chain closed all 250 of its physical stores last January as part of a bid to focus on ecommerce. The closures reportedly resulted in the loss of about 4,000 jobs.
Facing declining foot traffic at its store locations, Macy’s said earlier this year that it would close 68 outlets and reduce its workforce by several thousand employees. The chain is focusing on its high-performing stores and digital platform.
With same-store sales plunging, the upscale fashion retailer said it would close as many as 125 stores to adapt to a difficult, promotional sales environment.
The discount shoe retailer filed for bankruptcy last April and has moved to close about 800 stores this year.
The once-prominent electronics outlet shut down more than 1,000 store locations earlier this year. The brand now operates just 70 stores nationwide, down from a peak of several thousand.
The specialty teen clothing retailer confirmed last April that it would close up to 400 of its more than 1,100 locations and later filed for bankruptcy in May.
Sears Holdings is one of the most prominent traditional retailers to suffer in a challenged sales environment. The brand shuttered 35 Kmart locations and eight Sears stores last July and has closed more than 300 locations this year amid pressure from ecommerce outlets, USA Today Opens a New Window.reported.
The teen fashion brand shuttered its 171 stores earlier this year after previously filing for bankruptcy in 2015. Declining foot traffic at malls and pressure from competitors like Zara and H&M contributed to Wet Seal’s demise.
Which of these can you find in your community?
Hopefully, the downward trend in the retail market for the vast majority of chain stores will plateau before it’s too late.
But let us know what you think, and leave a comment in the section below.