Danielle’s Blog

Retail’s Changing Face

Over the past six months, there has been a flurry of announcements from retailers that they are closing stores, slowing expansion plans or ceasing operations altogether. In my opinion, it is due to the convience of the internet. Why go to a store, when you can use the internet to “shop” the best prices? I do most of my shopping while I am sitting on my couch watchng tv while the kids are in bed. As a mom with 2 young kids, it is impossible to get anything accomplished when shopping at a store.

Another big surge is in Direct Sales. Consumers like the personal service they receive from Independent Consultants. Such companies such as Taste of Home Entertaining, Tastefully Simple, GemStyle Jewerly, Arbonne International and Dove Chocolate at Home as a few of home-part companies that are growing while retail chains are closing.

Linens ‘n Things

Stores Closing: 120

Why? The bedding- and home-furnishing retailer said it plans to close 120 underperforming stores in its chain of 589 locations as it filed for chapter 11 bankruptcy protection in May.

 

 

Disney Stores

Stores Closing: 98

Why? The Mouse wants control. Disney is taking back its stores from a subsidiary of Children’s Place and is scaling back as it restructures because sales have been dropping over the last year.

 

 

Foot Locker

Stores Closing: 140

Why? With income down 78 percent in 2007, the shoe retailer is running for the hills. It’s putting 140 more of its 3,785 stores on the chopping block in addition to the 274 it closed last year.

 

 

Home Depot

Stores Closing: 15

Why? In December, Home Depot said it would cut 950 jobs and close three call centers that handle orders for home installation. The next month, is said it would cut 500 jobs at its headquarters. Now, amid a slumping U.S. economy and housing market, it announced in May it will close 15 underperforming U.S. stores.

 

 

Ann Taylor

Stores Closing: 117

Why? Times are tough for luxury clothes brands and Ann Taylor is finding it hard to compete. Last December sales were down 9.4 percent, leading to the closing of 16 percent of the company’s store count by 2010.

 

 

PacSun ‘Demo’ Stores

Stores Closing: 154 Demo Stores

Why? In Jan. 2008, Pacific Sunwear of California, Inc. said it will close its 154 Demo stores as a result of a a review of strategic alternatives for the urban-apparel brand. This follows the closure of 74 underperforming Demo stores last May.

 

 

Zales

Stores Closing: 105

Why? Diamonds may be forever, but maybe not so Zales. The poor economy is taking its toll on luxury vendors and so the jeweler is closing 50 kiosks and 55 full-size stores — leaving it with 2,145 locations — by the end of July and trimming its headquarters staff by 20 percent to weather the economic storm.

 

 

Pier 1 Imports

Stores Closing: 25

Why? After shedding 79 stores in 2007, sales are still declining. So the furniture and home accessory specialist is planning another cut back – this time closing just 25 more stores and selling its corporate headquarters.

 

 

Dell

Stores Closing: 140

Why? Dell keeps losing market share to As Hewlett-Packard — it has slipped into second place in PC sales behind HP — so the company that pioneered direct sales is turning away from the strategy and refocusing its efforts on sales in big box stores, so the mall kiosks had to go.

 

 

Sharper Image

Stores Closing: 90

Why? Things are not looking good for the 31-year-old company, which just filed for bankruptcy protection. The New York Times reported that the retailer will still operate 94 stores to pay off debts, but about half of all its outlets are performing poorly and should be closed “as soon as possible.”

 

 

Pep Boys

Stores Closing: 31

Why? The auto parts company laid off 550 employees as it shut down stores in November as part of a five-year strategic plan that will include a change in its mix of automotive products and adding “smaller neighborhood service shops.”

 

 

Rite Aid

Stores Closing: 28

Why? The drugstore chain announced in January that it was exiting the Las Vegas, Nev. market because the stores there had not been contributing to overall results. The company hasn’t opened a new store in the Las Vegas area since 1999.

 

 

Sprint Nextel Corp.

Stores Closing: 125

Why? As the nation’s third-largest wireless carrier struggles to compete with AT&T and Verizon Wireless it has announced that it will reduce stores and cut 4,000 jobs.

 

 

Macy’s

Stores Closing: 9

Why? According to a Dec. 28 2007 press release, Macy’s is closing 9 locations due to declining sales. However, it expects to open 5 new stores in 2008 and 6 to 8 new locations are currently planned for 2009.

 

 

Fashion Bug, Lane Bryant & Catherine’s

Stores Closing: 150

Why? CoStar.com reports that Charming Shoppes, Inc. is closing 150 underperforming stores, laying off 150 employees and reducing the amount of stores it will open in 2009. The closures will leave Charming Shoppes with approximately 900 Fashion Bug stores, 923 Lane Bryant stores and 471 Catherine’s stores.