An estimated 12,000 shops could close by the end of 2019

[bostonangler]

The retail apocalypse isn't showing any signs of slowing down.

Nine months into 2019, there have already been 40% more store closings announced than in all of 2018, according to a new report from global marketing research firm Coresight Research.

Based on Coresight Research's figures, retailers' earnings reports, bankruptcy filings and other records, more than 8,200 stores are slated to shutter this year and thousands of locations already gone.

Bankrupt footwear company Payless ShoeSource, which closed its remaining U.S. stores in late June, accounts for about 37% of the closings.

The "going-out-of-business" sales and liquidation of other brands is expected to continue. Coresight estimates closures could reach 12,000 by the end of the year, the report said. 

Coresight, which has offices in Manhattan, London and Hong Kong, tracked the 5,864 closings in 2018, which included all Toys R Us stores and hundreds of Kmart and Sears locations. 

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The record year for closings was 2017, with 8,139 shuttered stores, Coresight found. This included an earlier round of Payless closings, the entire HHGregg electronics and appliance chain, and hundreds of Sears and Kmart stores.

The pain is expected to continue into future years, according to an April report from UBS Securities. UBS analysts said 75,000 more stores would need to be shuttered by 2026 if e-commerce penetration rises to 25% from its current level of 16%.

A separate analysis by UBS said tariffs on Chinese imports could put $40 billion of sales and 12,000 stores at risk.

“The market is not realizing how much brick & mortar retail is incrementally struggling and how new 25% tariffs could force widespread store closures,” UBS analyst Jay Sole wrote in the May report. "We think potential 25% tariffs on Chinese imports could accelerate pressure on these company’s profit margins to the point where major store closures become a real possibility.”

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Closing all locations

Thousands of locations have already closed this year with the final Payless stores finishing their liquidation sales in June. All Charlotte Russe stores closed in April but the company's new owner has started to open new stores.

Payless ShoeSource: 2,589 (includes 248 Canada locations and 114 smaller-format stores in Shopko Hometown locations).

Gymboree/Crazy 8: 749

Dressbarn: 649. Here are the locations closing in July and August.

Fred's: 568; the final approximately 80 stores are now set to close after several rounds of closings this year, the company announced Sept. 9. The last round of closing of 129 stores was announced in July.

Charlotte Russe: 494; but the company's new owner is opening new stores.

Shopko: 371

Charming Charlie: 261

Avenue: 222

LifeWay Christian Resources: 170

A'Gaci: 54

Henri Bendel: 23

E.L.F. Beauty: 22

Topshop: All 11 U.S. stores

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More closings

Some of the announced closures may carryover into 2020, which was the case with several closings announced in late 2018 such as Lowe's, Sears and Kmart. Gap Inc. announced Feb. 28 it would close roughly 230 stores over two years. Some retailers also are opening new stores while closing locations including Bath & Body Works and Abercrombie & Fitch. 

GNC: 192 stores closed in first six months of year; up to 900 over the next three years.

Family Dollar: As many as 390 stores

Chico's: 74, but 250 over the next three years.

Gap: Roughly 230 in next two years

Walgreens: 200

GameStop: 180 to 200 globally

Foot Locker: 165, total includes closings outside of the U.S.

Signet Jewelers: The parent company of Kay, Zales and Jared said it would close another 150 stores.

 

Pier 1 Imports: 57, but up to 145 could close.

Ascena Retail: 120

Destination Maternity: 117

Sears: 21 more stores will close in October; 72 stores closed earlier this year. More stores will close in December.

Party City: 55

Victoria's Secret: 53

Vera Bradley: 50

Office Depot: 50

Kmart: Five more stores will close in October; 48 stores closed earlier this year. More stores will close in December

CVS: 46

Sears Hometown and Outlet Stores: 45

The Children's Place: Up to 45

Z Gallerie: 44

DKNY: 41

Stage Stores: 40 to 60

Bed Bath & Beyond: 40

Abercrombie & Fitch: 40

Francesca's: At least 30 stores

Build-A-Bear: Up to 30 over two years

Williams-Sonoma: 30

J.C. Penney: 27

Bath & Body Works: 24

Southeastern Grocers: 22

Saks Off 5th: 20

Lowe's: 20

J. Crew: 20

Barneys New York: 15

Macy's: 8

Nordstrom: 7

Target: 6

J.Crew: 5

Kohl's: 4

Whole Foods: 1

Calvin Klein: 1

Pottery Barn: 1

Source: Coresight Research; staff research

Pier 1 Imports store closings: Retailer plans to close 57 stores, and more closures could be coming, interim CEO says

https://finance.yahoo.com/news/more-store-closings-coming-estimated-100014142.html

 

 

 

B/A

[adhoc10]

13 minutes ago, bostonangler said:

The market is not realizing how much brick & mortar retail is incrementally struggling and how new 25% tariffs could force widespread store closures,” UBS analyst Jay Sole wrote in the May report. "We think potential 25% tariffs on Chinese imports could accelerate pressure on these company’s profit margins to the point where major store closures become a real possibility.”

An important piece of the US economy mosaic

[bostonangler]

That's a lot of jobs...

 

B/A

[coorslite21]

To this point tariffs have nothing to do with these closings....on line sales operations are part of it....(think Amazon).....but even then Sears was the first with that concept....The Sears Catalog....

 

Clothes and Shoe store closings makes little sense......in my world I want to be sure things fit......

 

Could be time to invest in second hand stores.....auto repair shops....etc......big/new money just isn't as plentiful as it once was....

 

CL

[Pitcher]

I’ve run and owned retail clothing stores.  Retail is tricky even in good times.  Today you have the behemoths Amazon, Wal Mart, Costco, and Target, waging all out Armageddon on the Retail Sector.  They are cutting margins to the point that brick and mortar stores just cannot compete.  It’s too bad because retail stores run by locals are good community ambassadors.  They provide jobs and care for their workers and their families.  Go to any small town and you can see first hand what Walmart did to the small stores.  

 

A lot of jobs have been lost BA but a lot of new jobs have sprung up in the Distribution centers of the big boys mentioned above.  Retail was overbuilt in the suburbs with a lot of overlap.  Just like any business there are good years and lean years. The strong survive and the weak who had a bad business plan will and should fail.  I saw the writing on the wall and sold my business 6 years ago.  I saw Amazon taking more and more share and I had a choice, to go specialty (or niche which is tough)  or sell.  The person that bought my business had a number of good years and switched to specialty high end last year.  The trade war is definitely hitting mom and pops and even some good sized stores but that may only be a few more months or year at the most.  If a store can’t plan and have reserves for a downturn they probably are too weak for such a tough competitive business.  

Edited September 30, 2019 by Pitcher

[bostonangler]

3 hours ago, Pitcher said:

I’ve run and owned retail clothing stores.  Retail is tricky even in good times.  Today you have the behemoths Amazon, Wal Mart, Costco, and Target, waging all out Armageddon on the Retail Sector.  They are cutting margins to the point that brick and mortar stores just cannot compete.  It’s too bad because retail stores run by locals are good community ambassadors.  They provide jobs and care for their workers and their families.  Go to any small town and you can see first hand what Walmart did to the small stores.  

 

A lot of jobs have been lost BA but a lot of new jobs have sprung up in the Distribution centers of the big boys mentioned above.  Retail was overbuilt in the suburbs with a lot of overlap.  Just like any business there are good years and lean years. The strong survive and the weak who had a bad business plan will and should fail.  I saw the writing on the wall and sold my business 6 years ago.  I saw Amazon taking more and more share and I had a choice, to go specialty (or niche which is tough)  or sell.  The person that bought my business had a number of good years and switched to specialty high end last year.  The trade war is definitely hitting mom and pops and even some good sized stores but that may only be a few more months or year at the most.  If a store can’t plan and have reserves for a downturn they probably are too weak for such a tough competitive business.  

 

I totally agree... But if you go to aa Amazon warehouse, there are more robots than people... That's the scary part... Automation is taking over on a large scale. And it's only just beginning...

 

UPS has been quietly delivering cargo using self-driving trucks

 

https://www.theverge.com/2019/8/15/20805994/ups-self-driving-trucks-autonomous-delivery-tusimple

 

B/A

[bostonangler]

4 hours ago, coorslite21 said:

To this point tariffs have nothing to do with these closings....on line sales operations are part of it....(think Amazon).....but even then Sears was the first with that concept....The Sears Catalog....

 

Clothes and Shoe store closings makes little sense......in my world I want to be sure things fit......

 

Could be time to invest in second hand stores.....auto repair shops....etc......big/new money just isn't as plentiful as it once was....

 

CL

 

I'm with you CL, but I guess we are old school. I asked a younger friend about the hassle of sending stuff back, and they see less hassle in returning stuff than going to a store... Go figure.

 

B/A