Let’s take a look at some of the major retailers that are shutting the lights on certain locations.
It seems like every other day we are receiving news about yet another major retailer that’s closing up shop in certain areas. Some of these closings are caused by larger corporate-level problems, while others are simply the product of ramped up efforts to improve the bottom line. Let’s take a look at some of the major retailers that are shutting the lights on certain locations, why they are doing it, and what’s the ultimate end game for the company as a whole.
Over the past three years, the department store giant has closed 80 of its underperforming locations. Times have changed for the former retail bell weather, and the store closures are just one of the cost-cutting measures it has implemented. Department stores as a whole have faced some serious challenges by the changing consumer landscape, and the entire concept of department stores as anchor is being challenged in certain markets.
Sears Holdings has been hit even harder than JCPenney, and the beleaguered parent company of both Sears and Kmart has reacted by closing numerous locations. Both brands are viewed as behind the times by today’s consumer, and a reputation for less than stellar customer service has not helped matters. The future for Sears could include smaller stores, and a refocus on the brands and products that the company is most well-known for.
Yet another of the standard bearers of mall anchor tenants, Macy’s has shuttered close to 100 stores over the past six years. As always, shareholder concerns on the company’s overall profitability are helping to influence decisions, and there are schools of thought that suggest that the real value in Macy’s lies within its real estate holdings. The company has not been shy about shaking things up to shake out of the doldrums, and has introduced prototype stores that just may do the trick.
Even this retail behemoth is not immune to calls to close up shop where its simply not working. Walmart will be closing over 100 of its failed small-store concept known as Express, and will refocus new store openings on the Neighborhood Markets and Supercenter concepts. The retailer continues to feel the squeeze from internet rival Amazon, and has recently announced free two-day shipping in a bit match the internet shopping powerhouse.
In addition to giants listed above, dozens of smaller retailers have been forced to refocus their efforts. In some cases, the best course of action has been to close up shop altogether, while others have been able to use it as a learning experience to reinvent themselves to better resonate with today’s shoppers.
One thing is for certain, the retail landscape is constantly evolving. The ease of point-and-click shopping has forever changed the retail dynamic, and consumers need to have a pretty good reason to actually leave their homes to visit a retailer in person. Ahead of the curve retailers and property owners are responding by offering more experience-type events to draw people in, and that appears to be the wisest course of action to resonate with today’s consumers.