The American retail business is currently going through a massive restructuring. What used to be huge retail businesses and household names once, is now struggling, with many of them even filing for bankruptcy.
After a disappointing holiday season, J.C. Penney (NYSE:JCP) said recently they will be closing down 138 stores within the second quarter, which is about 14% of their present store base. It will have a small impact on their net income, though, as the stores that are going to be sold account for less than 5% of their annual sales. By closing down these stores, J.C. Penney expects to save $200 million every year.
But J.C. Penney is not alone. Many other retailers are forced to go the same route, as they are losing out to the shift towards online shopping.
Retailers That Are Closing Down
– Struggling Sears is presently in the process of closing down 150 Sears and Kmart stores that are underperforming.
– Macy’s have decided to close 68 stores within early spring. In the medium-term, they want to close 100 others.
– Last Friday, Foot Locker announced they have closed down 51 stores in the fourth quarter. They want to close another 50 stores this year.
– Kohl’s closed 16 of their stores in 2016. They have about 1,150 stores at this time, but last Thursday, Kohl’s said they will run only about 500 of them, and that too with lower square footage. The leftover space will be leased out.
– CVS Health is closing down 70 stores because of uncertainty around the Affordable Care Act.
– Last year, Office Depot closed 123 stores. This year, they want to shutter 75 others.
– The female fashion apparel chain, BCBG, has filed for Chapter 11 bankruptcy. They are closing 118 stores across the country under the BCBGeneration, BCBGMaxAzria, Herve Leger, and the BCBG Factory banners.
– Another women’s apparel retailer, Bebe, wants to be just an online retailer. They are trying to close down their 170 stores without filing for bankruptcy. They have already hired B. Riley & Co. for exploring strategic alternatives.
– Even Tiffany & Co. is struggling. They have closed down 5 stores already and wants to prune their store base, even more, this year by closing another 6. Presently, they have 313 stores around the world.
– The discount shoe retailer Payless has also filed for Chapter 11 bankruptcy. They are closing down 400 stores to improve the balance sheet and reduce debt.