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*[[Max Azria|BCBGMAXAZRIA]] announced in January 2017 that it may have plans to close 120 stores.
*[[Max Azria|BCBGMAXAZRIA]] announced in January 2017 that it may have plans to close 120 stores.
*[[Bebe Stores|Bebe]] announced plans to close all stores and focusing online only. At its peak, Bebe operated a total of 312 stores, but by March 2017, this was down to 172.
*[[Bebe Stores|Bebe]] announced plans to close all stores and focusing online only. At its peak, Bebe operated a total of 312 stores, but by March 2017, this was down to 172.
*[[The Limited]] filed for bankruptcy, went of business and closed its remaining 250 stores.<ref name="whioohioimpact" />
*[[The Limited]] filed for bankruptcy, went out of business and closed its remaining 250 stores.<ref name="whioohioimpact" />
*[[Family Christian Stores]], going out of business entirely, is closing 240 stores.<ref name="whioohioimpact" />
*[[Family Christian Stores]], going out of business entirely, is closing 240 stores.<ref name="whioohioimpact" />
*[[Sears|Sears, Roebuck & Company]], which is the parent company of [[Kmart]] announced plans to close approximately 150 Sears/Kmart stores total.<ref name="sombernotice">{{Cite news|url=http://www.daytondailynews.com/business/are-sears-and-kmart-closing-near-you-company-issues-somber-notice/JXqhRLgzdEnfpoAQcBx9qJ/|title=Are Sears and Kmart closing near you? Company issues somber notice|first=Kara|last=Driscoll|date=March 22, 2017|accessdate=April 10, 2017|publisher=''[[Dayton Daily News]]''}}</ref> The retailer, as part of required reporting, stated to the [[Securities and Exchange Commission]] that it had substantial doubt that any of its retailers could continue to survive. Such a report is typically considered damaging to a company, as it affects their supply line.<ref name="pullingback">{{Cite news|url=http://www.reuters.com/article/us-sears-restructuring-vendors-idUSKBN16T31S|title=With Sears' future in doubt, vendors begin pulling back|author=Nandita Bose and Richa Naidu|date=March 23, 2017|accessdate=April 10, 2017|publisher=[[Reuters]]}}</ref> On April 20, 2017, [[Business Insider]] reported that the company was "quietly closing" more stores than it had initially announced and compiled a list of ten additional Sears and Kmart locations that were closing.<ref name="searsquietly">{{Cite news|url=http://www.businessinsider.com/list-of-sears-and-kmart-stores-closing-2017-4|title=Sears has been quietly closing more stores than it said it would — here's the list|first=Hayley|last=Peterson|date=April 20, 2017|accessdate=April 22, 2017|publisher=[[Business Insider]]}}</ref> On April 22, Sears also announced plans to close 50 of its auto centers and 92 pharmacies within Kmart locations.<ref name="autopharmacies">{{Cite news|url=http://www.chicagotribune.com/business/ct-sears-closing-auto-centers-0422-biz-20170421-story.html|title=Sears to close 50 auto centers, 92 Kmart pharmacies to cut costs|first=Ally|last=Marotti|date=April 22, 2017|accessdate=April 22, 2017|publisher=''[[Chicago Tribune]]''}}</ref>
*[[Sears|Sears, Roebuck & Company]], which is the parent company of [[Kmart]] announced plans to close approximately 150 Sears/Kmart stores total.<ref name="sombernotice">{{Cite news|url=http://www.daytondailynews.com/business/are-sears-and-kmart-closing-near-you-company-issues-somber-notice/JXqhRLgzdEnfpoAQcBx9qJ/|title=Are Sears and Kmart closing near you? Company issues somber notice|first=Kara|last=Driscoll|date=March 22, 2017|accessdate=April 10, 2017|publisher=''[[Dayton Daily News]]''}}</ref> The retailer, as part of required reporting, stated to the [[Securities and Exchange Commission]] that it had substantial doubt that any of its retailers could continue to survive. Such a report is typically considered damaging to a company, as it affects their supply line.<ref name="pullingback">{{Cite news|url=http://www.reuters.com/article/us-sears-restructuring-vendors-idUSKBN16T31S|title=With Sears' future in doubt, vendors begin pulling back|author=Nandita Bose and Richa Naidu|date=March 23, 2017|accessdate=April 10, 2017|publisher=[[Reuters]]}}</ref> On April 20, 2017, [[Business Insider]] reported that the company was "quietly closing" more stores than it had initially announced and compiled a list of ten additional Sears and Kmart locations that were closing.<ref name="searsquietly">{{Cite news|url=http://www.businessinsider.com/list-of-sears-and-kmart-stores-closing-2017-4|title=Sears has been quietly closing more stores than it said it would — here's the list|first=Hayley|last=Peterson|date=April 20, 2017|accessdate=April 22, 2017|publisher=[[Business Insider]]}}</ref> On April 22, Sears also announced plans to close 50 of its auto centers and 92 pharmacies within Kmart locations.<ref name="autopharmacies">{{Cite news|url=http://www.chicagotribune.com/business/ct-sears-closing-auto-centers-0422-biz-20170421-story.html|title=Sears to close 50 auto centers, 92 Kmart pharmacies to cut costs|first=Ally|last=Marotti|date=April 22, 2017|accessdate=April 22, 2017|publisher=''[[Chicago Tribune]]''}}</ref>

Revision as of 16:30, 2 May 2017

The retail apocalypse is a term used referring the late 2016 and continuing into 2017 closing of a large number of American retail stores. Overall, over 4,000 physical stores are affected as American consumers shift their purchasing habits due to various factors.

History

A Kmart in Lancaster, OH closed in 2016, store empty and signage removed

Since at least 2010, various economic factors have resulted in the closing of a large number of American retailers, particularly in the department store industry. Sears, which had 3,555 stores in 2010, was down to just 1,503 as of 2016, with more closures scheduled.[1] Sears also owns the retail chain Kmart Corporation, which operated 2,171 stores at its peak in 2000,[2] a number that has since dwindled to less than 750 with further closures planned.[3][4]

The term "retail apocalypse" began gaining widespread usage in 2017 following multiple announcements from many major retailers of plans to either discontinue or greatly scale back a retail presence, including companies such as H.H. Gregg, Family Christian Stores and The Limited all going out of business entirely.[5] The Atlantic describes the phenomenon as "The Great Retail Apocalypse of 2017," reporting nine retail bankruptcies and several apparel companies having their stock hit new lows, including that of Lululemon, Urban Outfitters, American Eagle.[6]

Affected retailers

The following retailers have all either closed or announced plans to close large numbers of retail locations during the time period known as the retail apocalypse and in some cases gone out of business entirely.

  • Payless ShoeSource plans to close 500 to 1,000 stores and may file for bankruptcy.[5]
  • RadioShack filed for bankruptcy in March 2017 and plans to close 552 stores. This is the second time in two years that the company has filed for bankruptcy.[5] Radioshack has also began secretly closing stores beyond the original 552 stores originally slated to close.
  • rue21, in April 2017, announced plans to close around 400 stores.[7]
  • BCBGMAXAZRIA announced in January 2017 that it may have plans to close 120 stores.
  • Bebe announced plans to close all stores and focusing online only. At its peak, Bebe operated a total of 312 stores, but by March 2017, this was down to 172.
  • The Limited filed for bankruptcy, went out of business and closed its remaining 250 stores.[5]
  • Family Christian Stores, going out of business entirely, is closing 240 stores.[5]
  • Sears, Roebuck & Company, which is the parent company of Kmart announced plans to close approximately 150 Sears/Kmart stores total.[8] The retailer, as part of required reporting, stated to the Securities and Exchange Commission that it had substantial doubt that any of its retailers could continue to survive. Such a report is typically considered damaging to a company, as it affects their supply line.[9] On April 20, 2017, Business Insider reported that the company was "quietly closing" more stores than it had initially announced and compiled a list of ten additional Sears and Kmart locations that were closing.[10] On April 22, Sears also announced plans to close 50 of its auto centers and 92 pharmacies within Kmart locations.[11]
  • hhgregg, which filed for bankruptcy in March 2017, announced that it would close all 226 of its remaining locations in April 2017 after having previously announced plans to close 88 in March.[5]
  • GameStop has announced plans to close at least 150 stores following reports of weak earnings and a grim prediction of sales for 2017.[5] GameStop has been affected by a shift in consumer purchasing habits of games as makers have made it easier to purchase titles online for download, often through consoles, requiring no physical disc.[12]
  • Macy's plans to close at least 68 stores and also will eliminate more than 10,000 jobs.[5]
  • Wet Seal filed for its second bankruptcy in January 2017 and announced plans to close all its stores, which numbered 171 at the time.[13]
  • American Apparel will close all of its stores, a total of 110, in April 2017 after being acquired by Gildan Activewear. 2,400 workers were laid off.[14]
  • JCPenney announced on February 24, 2017 that it will close 138 stores in 2017. However, on April 13, 2017, Penney reported plans to delay these closures due to strong sales that were apparently a result of better-than-expected sales and traffic due to customers coming in and supporting the stores following the announced closures. Liquidation sales will now start May 22, and stores will close July 31. That’s about six weeks later than the initial closure date scheduled.[15]
  • MC Sports closed all stores in 2017 as a result of bankruptcy.

Factors

...several trends—including the rise of e-commerce, the over-supply of malls, and the surprising effects of a restaurant renaissance—have conspired to change the face of American shopping.

The Atlantic[6]

The main factor cited in the closing of retail stores in the retail apocalypse is the shift in consumer habits towards online commerce. Holiday sales for e-commerce were reported as increasing by 11% for 2016 compared with 2015 by Adobe Digital Insights, with Slice Intelligence reporting an even more generous 20% increase. Comparatively, brick-and-mortar stores saw an overall increase of only 1.6%, with physical department stores experiencing a 4.8% decline.[16] Another factor is an over-supply of malls, as the growth rate of malls between 1970 and 2015 was over twice the growth rate of the population. Despite this, mall visits declined by 50% between 2010-2013 with further declines reported in each successive year. A third major reported factor is the "restaurant renaissance," a shift in consumer spending habits for their disposable cash from material purchases such as clothing towards dining out and travel.[6]

See also

References

  1. ^ Snyder, Michael (January 8, 2017). "It's A Retail Apocalypse: Sears, Macy's And The Limited Are All Closing Store". The Economic Collapse. Retrieved April 10, 2017.
  2. ^ "KMART CORP Annual Report - Fiscal Year Ending January 29th, 2000". Retrieved April 10, 2017. {{cite web}}: Cite has empty unknown parameter: |dead-url= (help)
  3. ^ "SEARS HOLDINGS CORPORATION Annual Report - Fiscal Year Ending January 28th, 2017". March 21, 2017. {{cite web}}: Cite has empty unknown parameter: |dead-url= (help)
  4. ^ "Kmart - Warren, OH 44484". Used phone number to confirm: 330-544-2098. March 21, 2017. {{cite web}}: Cite has empty unknown parameter: |dead-url= (help)
  5. ^ a b c d e f g h Driscoll, Kara (March 27, 2017). "RETAIL APOCALYPSE: 3,500 stores or more to close this year". WHIO-TV. Retrieved April 8, 2017.
  6. ^ a b c Thompson, Derek (April 10, 2017). "What in the World Is Causing the Retail Meltdown of 2017?". The Atlantic. Retrieved April 10, 2017. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  7. ^ Driscoll, Kate (April 17, 2017). "LOCAL IMPACT: Another teen clothing retailer to close 400 stores". WHIO-TV. Retrieved April 17, 2017.
  8. ^ Driscoll, Kara (March 22, 2017). "Are Sears and Kmart closing near you? Company issues somber notice". Dayton Daily News. Retrieved April 10, 2017. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  9. ^ Nandita Bose and Richa Naidu (March 23, 2017). "With Sears' future in doubt, vendors begin pulling back". Reuters. Retrieved April 10, 2017.
  10. ^ Peterson, Hayley (April 20, 2017). "Sears has been quietly closing more stores than it said it would — here's the list". Business Insider. Retrieved April 22, 2017.
  11. ^ Marotti, Ally (April 22, 2017). "Sears to close 50 auto centers, 92 Kmart pharmacies to cut costs". Chicago Tribune. Retrieved April 22, 2017. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  12. ^ Rosen, Ben (March 26, 2017). "GameStop closures: Is this the end of brick-and-mortar video game shops?". Christian Science Monitor. Retrieved April 11, 2017.
  13. ^ "Teen retailer Wet Seal is suddenly closing all of its stores". January 27, 2017. Retrieved April 17, 2017.
  14. ^ Shan, Li (January 16, 2017). "American Apparel starts mass layoffs as company winds down operations". Los Angeles Times. Retrieved April 17, 2017.
  15. ^ Driscoll, Kara (April 13, 2017). "JC Penney postponing store closures". WHIO-TV. Retrieved April 13, 2017.
  16. ^ Kaplan, Marcia (January 12, 2017). "2016 Holiday Ecommerce Wrap-up". PracticalEcommerce. Retrieved April 8, 2017.
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