Weekly Store Openings and Closures Tracker #2
KEY POINTS
The Fung Global Retail & Technology team tracks store openings and closures for a select group of US retailers
- In the past week, none of the retailers we track announced store openings. Overall, retailers that are expanding their store footprint are: value concepts such as fast fashion, discount and off-price, and the beauty and sportswear (athleisure) specialty retailers.
- In the past week, Payless filed for bankruptcy and announced it will close 400 stores. Separately, Rue21 is reportedly preparing to file for bankruptcy. Overall, those retailers that have announced store closures are primarily department stores and specialty retailers. Both segments are under tremendous pressure due to slower foot traffic and competition from e-commerce.
- Overall, store closing activity exceeds that of store openings, reflecting a worsening retail environment.
Store Openings
Among the retailers we track, no store opening announcements were made during the past week.
Value-driven retail concepts such as discount and fast fashion have been aggressive in expanding their store footprint, despite the difficult retail environment. Categories such as beauty and athleisure are outperforming the market, which is evident in their footprint expansion over the past 15 months.
Store Closings
Among the retailers we track, Payless ShoeSource filed for bankruptcy this week and will close 400 stores. We have adjusted our 500-store closure estimate to reflect the official announcement. Separately, Rue21 is reported to be preparing for a bankruptcy filing, according to Bloomberg.
The majority of retailers that have been closing stores fall within the department store and specialty retail categories. Primary reasons include: 1) declining mall traffic; 2) reconfiguration of store networks as retailers shift online; and 3) cutting losses from unprofitable stores.
