Whether it’s because of dwindling foot traffic, rising competition or ever-changing consumer habits, some of American’s favourite brick-and-mortar stores are forced to either all closed, Favorite Big Stores or announce plans to close large numbers of locations in favor of online sales this year.
Each year, as online shopping becomes more common and discount retailers continue to offer unbeatable prices, it’s getting harder and harder for traditional department stores to compete with. Analysts have predicted that the number of store closure this year could exceed a record-breaking number than over the past decades.
From clothing to home goods and chain restaurants, here we’ll take a look at the most popular retailer stores that are closing or have already closed this year.
1. Neiman Marcus
Luxury department store Neiman Marcus has been operating since 1907, with numerous locations in the world’s most prestigious shopping malls. Due to dwindling sales and mounting debt, it has filed for bankruptcy, taking more than 22 of its 58 locations shut down with it. Today the chain has fewer than 40 stores left in the world, and is still working to recuperate its debts.
2. Office Depot
Office supply retailer Office Depot was one of the brick-and-mortar companies that fall victim to growing online sales as well. Having endured years of declining sales, it was reported to have already shuttered hundreds more locations and laid off over 13,000 workers this year, as part of a restructuring plan to curb costs. At the same time, the company is finding more profits in online options like Amazon. Nowadays, many of its stores are full of bare shelves due to the large amount of goods being sold.
3. Tuesday Morning
Unfortunately, off-price home-goods retailer Tuesday Morning didn’t attract more customers despite its deep-discount advantages. The company reported that it was filing for Chapter 11 bankruptcy and eliminated over 200 unprofitable locations, nearly a third of its 700 stores. Following the alterations to the executive team, it is still uncertain if the company will still be able to make profits in the years to come.
4. Kohl’s
Though department store chain has been doing a lot to revamp their image in recent years, they are not immune to the woes of the retail apocalypse, such as Kohl’s. With more shoppers increasingly turning to e-commerce and now facing climbing inflation, Kohl’s has endured a prolonged period of sagging sales, resulting in a loss of over half a billion dollars in revenue. To combat losses, Kohl’s announced plans to close underperformed stores.
5. Stein Mart
Established in 1908, the beloved discount chain Stein Mart has filed for Chapter 11 bankruptcy. Only one day following the bankruptcy filing, it announced plans to give up all 279 of its physical locations.
Stein Mart CEO Hunt Hawkins said the company was ultimately pushed to the brink by the challenging retail environment combined with the impact of the coronavirus pandemic. As part of the liquidation process, everything in the Stein Mart Locations including merchandise, store fixtures, furniture, and equipment was quickly sold out at deeply discounted prices. Besides terminating physical stores, the company is also considering the possibility of divesting its online retail division and its intellectual property.
6. Guitar Center
Established in 1959, America’s largest retailer of musical instruments and gear Guitar Center had its first store in Hollywood. After that, it opened 293 more locations around the world. However, their growth was hindered by the huge debt of $1 billion and just couldn’t hold on any longer. Despite their financial hiccups, the company is still going strong. In 2020, they declared Chapter 11 bankruptcy protection and had $800 million of debt waived following restructuring. Meanwhile, it expects to receive an asset-based facility worth a maximum of $375 million, along with $165 million in fresh equity investments.
7. Macy’s
Macy’s is one of the most globally-recognized department stores that has been in existence since 1858. It is most well-known for its annual Macy’s Thanksgiving Day Parade, which has taken place since 1924. Despite having hundreds of branches worldwide, the company has had to close some of its mall locations in the recent, with a total of 125 shops being shut down.
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8. Bath & Body Works
It’s disappointing to hear that you can’t stock up on scented lotions and hand sanitizers at Bath & Body Works anymore. Bath and Body Works noted a 37% drop in sales from the same period last year. As a result, we are now seeing the closing of 51 Bath and Body Works physical locations across America, which were all inside large mall-based stores. It is important to note, however, its goodies’ online sales have seen significant increases this year.
9. Gap
It looks like Gap, one of the most popular clothing retailers in the ‘90s, is going to shut down a lot of store locations because their sales dropped 5% during the holiday season. The company declared its plan to close down approximately 230 Gap stores by the end of 2023, as well as downsizing the remaining locations. Instead, it is taking steps to end its presence in shopping centers and instead focus on having stores located in downtown areas and outlet retail centers.