Macy’s, Aeropostale, Others Closing Doors Amid Rough and Changing Retail Environment
The company currently has 675 stores and will shutter 100 of them by year’s end. According to Macy’s, the company, which focuses on an array of retail products from sporting goods to specialty apparel, is experiencing falling profits for various reasons.
What are some of the other businesses that are affected by this fast-changing retail environment?
Aeropostale has also filed for Chapter 11 bankruptcy protection and said 113 of its U.S. stores and 41 Canadian stores would close, citing the lack of generating profits. The company said these stores were responsible for the $17 million it lost in 2015. Aeropostale is faced with stiff competition for the teen market with companies like Forever 21 and H&M.
Ralph Lauren announced in June that it would close 50 stores and lay off 1,000 employees to reduce its costs and set up a leaner business. The RL stores have struggled to attain sales among the latest style choices and the changing retail trends.
In April, Sears Holdings said it would close 10 Sears stores and 68 Kmart stores to get rid of the unsuccessful locations. The announcement in April came shortly after the company has announced in January that it would speed up the closure of 50 stores.
Sears/Kmart is facing a number of challenges, such as Home Depot and Lowe’s that hinder its appliance sales, and Target and other companies that hinder its apparel. The closings may also be the result of Amazon.com. According to critics, these stores are following a dated, uninspired design and needs something more to stay competitive.
Sports Authority will close every one of the 460 stores. In March, the company had filed for Chapter 11 bankruptcy and announced it would close just 140 stores. However, the attempt to restructure its debt failed, and no offers were presented during an auction that would keep the stores open.
Sports Authority began a huge going-out-of-business sale, which is said to be complete by month’s end. Dick’s Sporting Goods purchase the company’s intellectual property and several leases for $15 million. According to Sports Authority, Internet competition was the big reason for its demise.
The Bentonville-Ar.-based company said 269 stores throughout the world (154 locations in the U.S.) would close its doors. The company is putting its attention on the e-commerce business as well as its supercenters. Closures are being decided on financial performance and how well stores will fit into the company’s broader strategy. Wal-Mart has roughly 11,600 stores around the world and will open over 300 stores in the next fiscal year.
The company is aggressively going after the e-commerce market, competing for the market share with Amazon.com. Wal-Mart recently said it was purchasing Jet.com, a commerce start-up company, for $3 billion.