Fung Global Retail & Technology tracks store openings and closures for a select group of US retailers.
Among the retailers we track, hhgregg and Eastern Outfitters made announcements last week regarding store closings. Hhgregg is now preparing to close all 220 of its stores, after failing to find a buyer under bankruptcy proceedings. We previously reported that hhgregg would close 88 stores. Eastern Outfitters is closing 48 stores, or 56% of its total store fleet, subject to bankruptcy court approval. The company filed for Chapter 11 back in February, and is reportedly working closely with Sports Direct International plc, a UK sporting goods retailer, on a possible deal.
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.
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.