Weekly Store Openings and Closures Tracker #15: Sears Closing 43 More Stores
KEY POINTS
Fung Global Retail & Technology tracks store openings and closures for a select group of US retailers.
- We forecast that announced store closures will total 9,452 by the end of 2017, exceeding the 6,164 stores closed in 2008. The 5,381 announced store closures year-to-date is tracking at 57% of our full-year forecast. The forecast for 2017 also represents a year-over-year increase of 361%.
- This week, department store Sears Holdings has announced the closure of an additional 43 stores.
- Children’s retailer Gymboree has finalized the number of stores it will close at 350 amid its Chapter 11 filing.
- Apparel retailer Abercrombie & Fitch has ended all talks with potential buyers.
- Year-to-date 2017, the number of store closure announcements has increased 162% year over year, bringing the total number of stores to be closed to 5,381, with more to surely follow.
2017 Store Openings and Closures
What Is Happening This Week?
Sears announced a new round of closures, with 43 additional stores affected. This brings the total number of Sears stores to be closed in 2017 to 289. Meanwhile, Gymboree has finalized the number of stores it will close at 350, after filing for bankruptcy in an attempt to restructure its business. Finally, troubled apparel retailer Abercrombie & Fitch has given up on talks with several parties over a possible acquisition, raising questions about the company’s future.
Sears Closing 43 More Stores
This week, Sears Holdings announced the closure of an additional 43 stores. A total of eight Sears and 35 Kmart stores are set to be closed by early October, on top of the previous 246 stores closures announced earlier in the year. The additional closures now bring the closure total to 289 stores, mirroring the difficulties Sears is having in turning around its business. These closed locations mostly belong to large-format and less competitive stores. The company expects to focus on small-format stores and specialized concept stores going forward.
Gymboree Finalizes Store Closures at 350
Gymboree has now finalized the number of stores it will close in relation to its bankruptcy filing. The company will close 350 stores—mainly across the Gymboree and Crazy 8 brands—under the restructuring plan to rationalize its retail footprint. The company initially planned to close 450 stores under its Chapter 11 filing. The retailer currently operates a total of 1,232 stores in the US under the Gymboree, Crazy 8 and Janie and Jack brands.
Abercrombie & Fitch Halts Sale Talks
Abercrombie & Fitch has now called off its attempt to seek a sale of itself. The company said its board of directors has ended talks with several parties over a possible acquisition, amid an urgent need to turn around its business. The failure to find a buyer has raised questions about the future of the apparel retailer. We first reported that Abercrombie intended to seek a potential suitor in our Weekly Store Openings and Closures Tracker #7 dated May 12.
2016 Store Openings and Closures
