Another day, another store closure — that seems to describe the retail climate in the U.S. in recent years.
It seems Payless ShoeSource is the latest to join a growing list of retailers with impending store closures. Amid declining sales, the discount footwear chain plans to file for bankruptcy and close 500 stores nationwide, according to PressConnects.com.
Retailers including Sears, Kmart and The Limited have already shuttered hundreds of stores so far in 2017. CNN Money reports that Texas-based gaming retailer GameStop recently announced that as many as 190 stores could be shuttered in its effort to close 2 to 3 percent of its stores.
And that’s just the beginning. With more consumers shopping online and avoiding shopping malls, many familiar store brands are struggling. According to The Street:
Just in the past few weeks, Wall Street saw bankruptcy filings from sporting goods retailer Gander Mountain, RadioShack successor General Wireless Operations, everyday value price department store operator Gordmans Stores and appliances, electronics and furniture retailer HHGregg. Last Wednesday, children’s apparel retailer Gymboree cautioned that it was low on cash and may not survive.
The Street says the future also looks pretty grim for these three retailers:
- J. Crew: The women’s apparel retailer says first quarter same-store sales fell 11 percent this year as its foot traffic is dwindling.
- Claire’s: The girls accessory store has suffered three straight years of losses, says The Street. The retailer is also struggling with long-term debt.
- Ascena: The parent company of apparel retailers Ann Taylor, Ann Taylor Loft and Justice, among others, has experienced a 67 percent drop in its stock in the past year, says The Street.
There are countless reasons for a store or a brand to fail. Check out “10 Iconic Brands That Died and 9 More That May Soon Follow.”
What do you think of the steady stream of store closures over the past few years? Share your thoughts below or on Facebook.