With a new year comes change. New retail trends. New consumer behavior and demands. New tools and technologies to incorporate. New opportunities.
And with all that is new, retailers are forced to adapt to meet demand and stay ahead of the competition. That sometimes means downsizing to stay competitive and some retailers simply have too many stores.
There’s a total of 14 major retail chains have announced that they will close at least 100 stores by the end of 2020. Others will reach that total by the end of 2017. In some cases, these numbers appear to be on the low side, given the difficulties some retailers are encountering.
Aeropostale. The chain filed for bankruptcy in May 2016 and said it would close 154 stores. Now it appears that the chain will close all but about 230 of its 800 or so stores.
American Eagle Outfitters Inc. (NYSE: AEO). The company plans to close 150 stores over three years.
Chicos FAS Inc. (NYSE: CHS). Planned to close 120 stores between fiscal 2015 and 2017.
The Children's Place Inc. (NASDAQ: PLCE). Planned to close 200 stores between fiscal 2015 and 2017.
CVS Health Corp. (NYSE: CVS) CVS Health executives outlined their long-term strategy for growth, which includes closing 70 stores in 2017.. The drugstore retailer's overall cost-cutting plans aim for $3 billion in savings from 2017 to 2021.
Finish Line Inc. (NASDAQ: FINL). Has said it will close 150 stores by 2020.
Hancock Fabrics. The company filed for bankruptcy in February 2016 and will close all 255 of its stores.
J.C. Penney -- CEO Marvin Ellison made headlines in March that when he told Fortune he wouldn’t undertake “any wholesale closings of stores in its 1,020-location fleet,” though it did shutter seven locations. The Plano, Texas-based retailer operates almost as many stores as it did in 2006, but its annual sales were roughly $7 billion higher back then than they were last year. Ellison told the magazine that Penney’s future lies in e-commerce and physical stores working together.
Kohl’s. After a rocky start to 2016 when it announced 18 store closures, the Wisconsin-based no-frills retailer rebounded and reported better-than-expected results in its most recent quarter. Kohl’s, though, continues to struggle. Comparable-store sales in its latest period fell 1.7 percent, the third straight decline in this closely watched retail metric of sales at stores open a year or more, a worrisome sign for Wall Street.
Macy's Inc. (NYSE: M). Plans to close 100 stores. The country’s largest department store chain announced plans in August to shutter 100 underperforming locations in 2017, about 15 percent of its brick-and-mortar footprint. Macy’s shed 41 locations last year and axed thousands of employees. Terry Lundgren, who had led the retailer for more than a decade, will step down next year from the CEO spot and become executive chairman.
Men's Wearhouse Inc./Jos. A. Banks. Parent Tailored Brands Inc. (NYSE: TLRD) plans to close 250 stores, primarily outlet stores.
Office Depot Inc. (NYSE: ODP). At the time of its merger with OfficeMax, the chain said it would close 400 stores by the end of this year, and that appears to be the case.
Sears Holdings Corp. (NASDAQ: SHLD). Between Sears and Kmart stores, the company plans 142 store closings, with more likely. The Hoffman Estates, Illinois-based company has been floundering for years under the control of hedge fund tycoon Edward Lampert, who arranged the merger of Sears and Kmart that created the current company more than a decade ago.
Sports Authority. Another bankruptcy, with 140 stores closing.
Walgreen Boots Alliance Inc. (NYSE: WBA). The company planned to close 154 stores. Last week the company announced the sale of 865 Rite Aid Inc. (NYSE: RAD) stores to Fred's Inc. (NASDAQ: FRED) in an effort to win approval for the Walgreens-Rite Aid merger.
Walmart Stores Inc. (NYSE: WMT). With cost pressures in mind, Walmart said in January that it would close 269 stores around the world, including its small-format Express locations that were designed to compete against the dollar stores that have taken market share from the giant in recent years. Rising expenses are weighing on the world’s largest retailer, which raised the salaries of thousands of hourly employees last year and unveiled a plan to spend billions on expanding its e-commerce operations.
The good news for U.S. retailers this holiday season is that revenues are expected to rise by about 4% and same-store sales are figured to increase by 1%. The less-good news however is that profits for the fourth quarter (ending in January) are expected to fall 1.8%.