Online shopping companies like Amazon have changed the way the world shops, making the process quick and easy for everyone. While there are many benefits to online shopping, there’s a negative side to filling your virtual cart: it often causes brick-and-mortar stores to close. In 2019, plenty of popular retailers have announced massive closures. See which ones will have a small space at your local mall…
Lingerie company Victoria’s Secret is struggling this year. Unfortunately, the brand’s sales dropped nearly ten percent last year, making them reconsider planned sales and releases. While the company has been closing about 15 stores per year recently, in 2019, the number will rise to 53.
Moreover, Victoria Secret isn’t keeping anything, including more store closures, off the table. “There are no constraints. We are not financially constrained, and we’ve got a lot of different things that we have and can consider,” company executives told shareholders. It’s hard to believe such a shopping staple is heading the way of the dodo!
Clothing company Gap will shut down a shocking 230 stores this year, significantly more than last year. Recently, the CEO of Gap Inc. stated that the stores do not bring in enough profit will shut down. Simple as that. However, that’s not the end of the company’s plan to become profitable. The business will also be split: Old Navy will separate from brands Gap, Banana Republic, Intermix, Athleta and Hill City, which will remain together. We’ll see if this change works out!
Sometimes, a company will shut down specific locations to make others look more attractive. That’s the case with Dollar Tree, which will shut down close to 390 Family Dollar stores to renovate many of their other locations. The renovations will include rebranding, alcohol selling points, expanded freezer and cooler sections, and even Family Dollar merchandise. “We are confident we are taking the appropriate steps to reposition our Family Dollar brand for increasing profitability as business initiatives gain traction in the back half of fiscal 2019,” said the CEO of the company, Gary Philbin, after they lost $2.31 billion last year.
Viral, electric cars designed by internet legend and tech CEO Elon Musk should be selling like mad right now. Well, while Tesla has no problem selling cars online, they just don’t see many profits coming from their brick-and-mortar stores. So, this year, Tesla will close most of their stores, except for “a small number of stores in high-traffic locations remaining as galleries, showcases and Tesla information centers.” From here on out, if you want a Tesla, you’ll need to head online!
In February of this year, Payless ShoeSource filed for bankruptcy and started closing many locations all around the country. 2018 was the worst year in the company‘s history, with it losing $68 million. In fact, Payless will experience the most extreme closing, with 2,500 stores shuttering. The only stores not closing are company locations in Latin America, where the brand remains profitable, and any franchised locations. However, these locations will continue to face increased competition from reinvigorated competitors. So, it’s entirely likely that some of these locations will also fall in the future.
With so many closures or rebranding, there’s no guarantee other brands won’t come to the same fate. Keep an eye on FinanceChatter for updates!