Home » Posts tagged 'retail apocalypse'

Tag Archives: retail apocalypse

Olduvai
Click on image to purchase

Olduvai III: Catacylsm
Click on image to purchase

Post categories

Post Archives by Category

‘Retail Apocalypse’ Continues: Forever 21 Files For Bankruptcy, 30,000 Jobs At Risk

September 30, 2019

‘Retail Apocalypse’ Continues: Forever 21 Files For Bankruptcy, 30,000 Jobs At Risk

Following reports earlier this month that a bankruptcy for the fast-fashion pioneer was imminent, Forever 21 filed for Chapter 11 protection in Delaware Sunday night, becoming the latest brick-and-mortar retailer to succumb to the Amazon-driven ‘retail apocalypse’, Bloomberg reports.

In addition to the competition from e-commerce retailers, BBG said Forever 21 struggled with high rents and heavy competition from other fast-fashion rivals (like H&M and Zara).

Court papers show Forever 21 has estimated liabilities (on a consolidated basis) of between $1 billion and $10 billion. Thanks to Chapter 11 protection, Forever 21 will continue operating as it works out a plan to pay back all of its creditors. 

Part of that plan, again, according to the filings, will likely involve closing as many as 350 of its more than 800 stores around the world. Most of the closures will focus on Asia and Europe: The company has earlier announced plans to shutter all 14 of its Japanese stores. Meanwhile, its operations in Mexico and Latin America will continue, according to Reuters.

This means that nearly half of the chain’s 30,000 employees could lose their jobs. 

Even before the Forever 21 bankruptcy, the ~11,000 announced and completed store closures in the US were already on track to exceed to the totals from the past few years. One research shop projects annual closures in 2019 to hit 12,000 by year end.

Analysts at Goldman Sachs estimate that $7.5 billion of ‘sales opportunity’ will arise from store closures in 2019 as liquidation sales pull some demand forward.

Meanwhile, Goldman believes the shift to e-commerce will continue: “We believe e-commerce growth will likely accelerate over the course of the second half as a record number of retail store closures, initiatives around fulfillment such as Amazon’s $800 million investment in same-day delivery and Etsy’s move to free shipping…will drive more consumers to shift purchases online.”

 …click on the above link to read the rest of the article…

Retail Apocalypse Claims Latest Victim: Barney’s Files For Bankruptcy; Blames Rising Rents, Fewer Customers

August 6, 2019

Retail Apocalypse Claims Latest Victim: Barney’s Files For Bankruptcy; Blames Rising Rents, Fewer Customers

Ultra luxury department store chain Barney’s probably did not use a plush, Louis Vuitton letter pouch in which to submit its Chapter 11 filing at Bowling Green yesterday, but the result is the same: the iconic Madison Avenue store officially filed for bankruptcy protection and laid out its plans to shut down most of its stores, according to Bloomberg. The company cited rising rents and fewer visitors to its stores as the reasons for its restructuring.

In its bankruptcy filing, the company listed assets of between $100 million and $500 million and liabilities of between $100 million and $500 million. This will be its second bankruptcy after going bankrupt in 1996 after it fell out with a Japanese partner.

The Chapter 11 filing will allow Barney’s to stay open while it finds a buyer for its slimmed-down business and negotiates with landlords. The company is owned by billionaire Richard Perry and has secured $75 million in new capital to help with its financial commitments.

Chief Executive Officer Daniella Vitale said: “Like many in our industry, Barneys New York’s financial position has been dramatically impacted by the challenging retail environment and rent structures that are excessively high relative to market demand.”

Many of the company’s most famous stores, including the ones on Madison Avenue and in downtown New York City, are going to remain open. Stores in flagship locations like Beverly Hills, San Francisco and Boston will also stay open, as willl two of the company’s warehouse locations, while its online operations will also continue to operate. Stores in Chicago, Las Vegas and Seattle will close, as well as five smaller concept stores and seven of the company’s warehouse locations.

 …click on the above link to read the rest of the article…

Retail Apocalypse: 12,000 Stores Are Forecasted To Close This Year

July 13, 2019

Retail Apocalypse: 12,000 Stores Are Forecasted To Close This Year 

As the economy cycles down through summer, there is new, alarming data that shows retail store closings are accelerating.

Coresight Research says there have already been 20% more store closings announced in the first six months of 2019 than in all of 2018.

The research firm examined figures and retailers’ earnings reports, found that more than 7,000 are expected to close this year with many locations already shut down.

Bankrupted Payless ShoeSource closed its remaining stores last week, accounts for 37% of the closing this year.

Coresight estimates closures could hit at least 12,000 stores by the end of 4Q19. The firm already tracked 5,864 closings in 2018, which included all Toys R Us, Kmart and Sears.

The retail apocalypse reared its ugly head in 2017 when a record 8,139 store closures were reported.

In a separate reported, noted by USA Today, UBS said 25% tariffs on $250 billion worth of Chinese products could jeopardize $40 billion of retail sales and puts 12,000 stores at risk of closing.

“The market does not realize 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 the 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.”

It’ll take several months for the new round of tariffs to filter through the economy, raise retail prices, force consumers to shop online or not at all, and then lead to a new wave of closings in 1H20. As for the economy, growth rates are indeed declining as an industrial slowdown is spread to other sectors.

Here is Coresight’s complete list of store closures so far for this year:

 …click on the above link to read the rest of the article…

The Retail Apocalypse Picks Up Speed As Sears, JCPenney, Brookstone And Mattress Firm Spiral Toward Bankruptcy

October 3, 2018

The Retail Apocalypse Picks Up Speed As Sears, JCPenney, Brookstone And Mattress Firm Spiral Toward Bankruptcy

Over 20 major retailers have filed for bankruptcy since the beginning of last year, and in 2018 we may break the all-time record for annual store closings that was established just last year.  We are in the midst of the worst retail apocalypse in American history, and it appears to be picking up speed as retail giants such as Sears, JCPenney, Brookstone and Mattress Firm spiral toward bankruptcy.  We live at a time when the middle class is being systematically destroyed, and so the truth is that U.S. consumers simply do not have as much discretionary income as they once did.  Many large retailers believed that things would eventually turn around, and they have been fighting very hard to survive, but now time has run out for quite a few of them.

Mattress Firm

Everyone knew that Mattress Firm was in deep trouble, but it still surprised many of us when it was announced that they are officially planning to file for bankruptcy.  The following comes from Reuters…

Mattress Firm Inc, the largest U.S. mattress retailer, is preparing to file for bankruptcy protection as soon as this week, as it seeks to exit costly store leases and shore up its business, people familiar with the matter said on Tuesday.

At this moment Mattress Firm has approximately 3,000 brick-and-mortar locations, and as those stores close down those abandoned buildings are going to be giant eyesores on street corners all over America.

Brookstone

When I was a kid back in the 1980s, it seemed like Brookstone had an outlet in every mall I visited.  But now Brookstone has filed for bankruptcy, and all remaining mall stores will be shut down…

…click on the above link to read the rest of the article…

77 Million Square Feet Of Retail Space And Counting – America’s Retail Apocalypse Is Spiraling Out Of Control In 2018

May 22, 2018

77 Million Square Feet Of Retail Space And Counting – America’s Retail Apocalypse Is Spiraling Out Of Control In 2018

In 2017 we absolutely shattered the all-time record for retail store closings in a single year, and this year it looks like we are going to shatter the record once again.  In fact, there are some that are projecting that up to 9,000 retail storescould close by the time that we get to the end of this calendar year.  Already, the amount of retail space that has shut down is simply jaw-dropping.  If you total up all of the retail store closings that have been announced so far in 2018, it accounts for 77 million square feet of retail space.  Let that number sink in for a bit.  Many shopping centers and strip malls around the country already have a post-apocalyptic feel to them, and more “space available” signs are going up with each passing day.  And in case you are tempted to think that I am making this figure up, here it is straight from Bloomberg…

At last count, U.S. store closures announced this year reached a staggering 77 million square feet, according to data on national and regional chains compiled by CoStar Group Inc. That means retailers are well on their way to surpassing the record 105 million square feet announced for closure in all of 2017.

In the end, we could shatter the all-time record that was established just last year by 20 or 30 million square feet.

At moments such as this, the phrase “retail apocalypse” doesn’t really seem to fit the gravity of what is actually taking place.

And unfortunately for the retail industry, it doesn’t appear that this crisis is going to end any time soon.  Here is more from Bloomberg…

…click on the above link to read the rest of the article…

Thousands More Stores Are on the 2018 Retail Apocalypse DEATH LIST: Are your local stores on the list?

March 4, 2018

Thousands More Stores Are on the 2018 Retail Apocalypse DEATH LIST: Are your local stores on the list?

Every year, it seems like more and more retail outlets are going out of business, resulting in the loss of jobs and local supplies. Last year, hundreds of stores closed, and this year, even more shops are scheduled to shut their doors for good.

The 2018 Death List

This year, in an effort to save their businesses, the following retailers will close hundreds of their stores, according to Fox Business.

  • Abercrombie & Fitch: 60 more stores are charted to close
  • Aerosoles: Only 4 of their 88 stores are definitely remaining open
  • American Apparel: They’ve filed for bankruptcy and all their stores have closed (or will soon)
  • BCBG: 118 stores have closed
  • Bebe: Bebe is history and all 168 stores have closed
  • Bon-Ton: They’ve filed for Chapter 11 and will be closing 48 stores.
  • The Children’s Place: They plan to close hundreds of stores by 2020 and are going digital.
  • CVS: They closed 70 stores but thousands still remain viable.
  • Foot Locker: They’re closing 110 underperforming stores shortly.
  • Guess: 60 stores will bite the dust this year.
  • Gymboree: A whopping 350 stores will close their doors for good this year
  • HHGregg: All 220 stores will be closed this year after the company filed for bankruptcy.
  • J. Crew: They’ll be closing 50 stores instead of the original 20 they had announced.
  • J.C. Penney: They’ve closed 138 stores and plan to turn all the remaining ones into toy stores.
  • The Limited: All 250 retail locations have been closed and they’ve gone digital in an effort to remain in business.
  • Macy’s: 7 more stores will soon close and more than 5000 employees will be laid off.
  • Michael Kors: They’ll close 125 stores this year.
  • Payless: They’ll be closing a whopping 800 stores this year after recently filing for bankruptcy.
  • Radio Shack: More than 1000 stores have been shut down this year, leaving them with only 70 stores nationwide.
  • Rue 21: They’ll be closing 400 stores this year.

…click on the above link to read the rest of the article…

.

It’s A Retail Apocalypse: Sears, Macy’s And The Limited Are All Closing Stores

January 11, 2017

It’s A Retail Apocalypse: Sears, Macy’s And The Limited Are All Closing Stores

retail-apocalypse-public-domainIt has only been two weeks since Christmas, and already we are witnessing a stunning bloodbath of store closings.  Macy’s shocked the retail industry by announcing that they will be closing about 100 stores.  The downward spiral of Sears hit another landmark when it was announced that another 150 Sears and Kmart stores would be shutting down.  And we have just learned that The Limited is immediately closing all stores nationwide.  If the U.S. economy is doing just fine, then why are we experiencing such a retail apocalypse?  All over America, vast shopping malls that were once buzzing with eager consumers now resemble mausoleums.  We have never seen anything quite like this in our entire history, and nobody is quite sure what is going to happen next.

Not too long ago I walked into a Macy’s, and it was eerily quiet.  I stumbled around the men’s department looking for something to buy, but I was deeply disappointed in what was being offered.  After some time had passed, an employee finally noticed me and came over to help, but they didn’t have anything that I was looking for.

And it is a sad thing, because over the past several years when I have gone into Macy’s looking to spend money, most of the time I have come out of there without spending a penny.  Macy’s has made some very bad decisions recently, and I am hoping that they can still turn things around.  But for the moment, they are closing stores and cutting jobs.  The following comes from the New York Times…

…click on the above link to read the rest of the article…

Retail Apocalypse: 2016 Brings Empty Shelves And Store Closings All Across America

February 2, 2016

Retail Apocalypse: 2016 Brings Empty Shelves And Store Closings All Across America

Closed - Public DomainMajor retailers in the United States are shutting down hundreds of stores, and shoppers are reporting alarmingly bare shelves in many retail locations that are still open all over the country.  It appears that the retail apocalypse that made so many headlines in 2015 has gone to an entirely new level as we enter 2016.  As economic activity slows down and Internet retailers capture more of the market, brick and mortar retailers are cutting their losses.  This is especially true in areas that are on the lower portion of the income scale.  In impoverished urban centers all over the nation, it is not uncommon to find entire malls that have now been completely abandoned.  It has been estimated that there is about a billion square feet of retail space sitting empty in this country, and this crisis is only going to get worse as the retail apocalypse accelerates.

We always get a wave of store closings after the holiday shopping season, but this year has been particularly active.  The following are just a few of the big retailers that have already made major announcements…

-Wal-Mart is closing 269 stores, including 154 inside the United States.

-K-Mart is closing down more than two dozen stores over the next several months.

-J.C. Penney will be permanently shutting down 47 more stores after closing a total of 40 stores in 2015.

-Macy’s has decided that it needs to shutter 36 stores and lay off approximately 2,500 employees.

-The Gap is in the process of closing 175 stores in North America.

-Aeropostale is in the process of closing 84 stores all across America.

-Finish Line has announced that 150 stores will be shutting down over the next few years.

…click on the above link to read the rest of the article…

Major Chain Stores Shutting Down as America Faces “Birth Pangs of Retail Apocalypse”

July 15, 2015

Major Chain Stores Shutting Down as America Faces “Birth Pangs of Retail Apocalypse”

Store-Closed-Until-Further-Notice-Photo-by-Gryllida-425x565

Reduced consumer spending is heralding a looming economic downturn, if not collapse, with an unprecedented shutdown of major box stores, restaurants and grocers underway.

It doesn’t bode well for the millions of Americans who are already seriously struggling, and will only accelerate the death of the middle class.

Along with this massive shrinkage of the retail sectors will go thousands of jobs.Natural News reports:

There is chatter across the web about dozens of major retail chains that are expected to permanently shutter a large number of their store locations this year. Popular names like Abercrombie & Fitch, Barnes & Noble, Chico’s, Children’s Place, Coach, Fresh & Easy, Gymboree, JCPenney, Macy’s, Office Depot, Pier One, Pep Boys, and many others are named as soon-to-be casualties in what some news sources are now referring to as the coming “retail apocalypse.”

The Economic Collapse Blog pins 2015 as a significant “turning point” for the U.S. economy, ominously warning that at least 6,000 retail store locations are expected to close this year based on company announcements. Many American consumers are already witnessing the birth pangs of this retail apocalypse as brick-and-mortar department, specialty, and even food shops close their doors for good.

The list of store closures (see here) is truly massive, and in no way accounts for everything that’s coming.

But Americans are still buying one major retail category — technological gadgets like iPhones, wearables, smart devices and computers. As technology purchases soar, shopping malls that have long specialized in clothing and fashion retail are falling in on themselves.

Business Insider calls it a slow and painful death, noting the collapse not only of thousands of stores from dozens of chains, but even the fall of giants like Gap:

Gap once ruled the retail world. But today America’s largest apparel retailer is closing a quarter of its stores and laying off hundreds of workers after disappointing sales.

Gap’s closures are indicative of a larger trend in American retail.

…click on the above link to read the rest of the article…

 

 

Olduvai IV: Courage
Click on image to read excerpts

Olduvai II: Exodus
Click on image to purchase

Click on image to purchase @ FriesenPress