Online Competition on Price, Choice and Convenience
Retailers are closing thousands of stores — but there could be a bigger problem hiding in the distance
Fast food giant McDonald's Corporation (NYSE: MCD
) plans to downsize rather than supersize in order to cut losses and increase profits. The move will offset a 0.2% decline in U.S. sales and a 3.2% decline across some of its international locations. McDonald's went public with its plans to close a net total of 59 U.S. restaurants in June 2015, which still leaves the company with more than 14,000 locations across the country and more than 36,000 worldwide.
The restaurant chain also announced plans to close approximately 700 locations in various countries in order to restructure its operations.
The closures mark the first time that McDonald’s has closed locations in four decades.
Earlier this week, the fast-food giant announced that—for the first time in more than 40 years—their number of U.S. restaurants is shrinking. Though the burger baron shuts down stores every year, closures have always been offset by new location openings.
McDonald's declined to provide a specific figure, but their spokesman said that the reduction would be "minimal" compared with its total 14,300 American locations. Company officials declined to say which locations are expected to close.
Subway Restaurants closed hundreds of domestic locations last year, marking the biggest retrenchment in the history of a chain that spent decades saturating America with restaurants.
The company lost 359 U.S. locations in 2016, the first time that Subway had a net reduction. The store count dropped 1.3 percent to 26,744 from 27,103 in 2015, but Subway remains the nation’s most ubiquitous eatery. (McDonald’s Corp. is No. 1 by sales.)
Another store, it seems, has bit the dust.
Massive gourmet coffee chain recently announced that it plans to close all 379 of its Teavana retail stores, closures that will affect a staggering 3,300 employees.
A recently released third-quarter report from the brand indicates that many of the company's mall-based Teavana retail stores have been "persistently underperforming." Starbucks says that, despite its efforts to drive traffic through creative merchandising and new store designs, it's not optimistic that the troubling trend will reverse itself.
Starbucks says it will close all of its 300+ Teavana stores over the coming year. The majority should be closed by spring 2018.
It's been a rough few months for some Canadian companies, with leather staple Danier closing its retail locations and struggling coffee chain Second Cup latching onto one last lifeline in the form of a sizeable loan.
As most of you probably know by now, Canadian leather retailer Danier is liquidating and closing down all of its retail stores.
If you're a loyal BCBG Max Azria shopper, we have some sad news for you—the upscale women's fashion brand is shuttering all of its standalone stores in Canada.
Shipping giant FedEx is closing its FedEx Office stores in Canada after 32 years in the country, according to a report by The Canadian Press, which notes FedEx Office will close its 24 stores, a manufacturing plant in Markham, Ontario, and its head office in Toronto.
FedEx Office stores provide a range of business services like copying and printing, sign making, office supplies sales and packaging services. They also serve stores as pick-up and drop-off sites for FedEx shipping.
The move will result in the loss of 214 jobs, but will not affect FedEx’s shipping business in Canada, according to FedEx Spokeswoman Stacey Sullivan. Eighteen of the stores are in Ontario, five in B.C. and one in Nova Scotia. The closings are to begin in August.
As I mentioned last month, Gymboree is closing approximately 350 stores mainly across the Gymboree and Crazy 8 brand as part of their Chapter 11 Bankruptcy. To see if you live near a store that will indeed be closing, head here and select your state from the drop-down menu.
As Americans do more and more of their shopping on their devices instead of at the store, traditional retailers are reeling. Some are being forced to shrink — or go out of business altogether. Already 2017 has been a year of massive store closings, led by these chains.
Hudson’s Bay Outlet Stores
The iconic Canadian department store opened its first outlet location in 2013 at the Toronto premium outlets. The outlet store instantly became a success and a second location in Montreal opened later the next year. After two years of business, Hudson’s Bay announced that both stores would close and be replaced with Saks Fifth Avenue’s outlet
The UK-based retailer, best known for their ‘fcuk’ emblazoned sweaters, has been quietly closing stores since 2013. The retailer currently only has two locations left in Canada: one in Toronto and one in Montreal.
At the beginning of 2016, American skincare brand H2O Plus announced closed their last standing Canadian store. The company decided to pull out of the Canadian market completely, halting online orders and shipments to Canada
In August 2016, Ben Moss Jewellers announced they would shutter all 54 locations, citing a weak Canadian dollar and the soft western economy as the reason for closure. Prior to the announcement, the Canadian jeweler had been operating for 100+ years. Unfortunately, the store will no longer honor any warranties previously purchased.
Last year, the Los Angeles-based retailer closed 50 of their 488 North American Guess stores. The year prior, the retailer closed 19 locations. The closures came after struggling sales and as an attempt to create a true omnichannel shopping experience and adapt to the new normal of retail
The Montreal-based retailer, whose denim line gained major popularity in the 90s, closed all seven of their locations early 2015. The brand is still available to shop online.
At the end of 2014, Reitmans Canada Limited announced they would be shutting down all 107 Smart Set locations. 76 of those locations will be converted into other Reitmans Canada Limited operated stores – Penningtons, Addition-Elle, Thyme Maternity, RW & Co or Hyba.
In the past couple of years, Chapters/Indigo have closed multiple locations across Canada. They closed their Toronto Runnymede location in February 2014, the World’s Biggest Bookstore in March 2014 and their downtown Toronto Richmond & John location in April 2015. They also closed their Montreal flagship and their Vancouver flagship but it’s all for the better. Since the closures, the company has been in steady growth mode. In May 2016, Indigo opened a 30,000 sq. foot location at CF Sherway Gardens. They are currently seeking out real estate for new store locations and are renovating current stores, coast-to-coast.
Trouble for Sears began in 2013 when they announced they would be laying off a large portion of their employees and selling the leases to 8 of their locations across Canada. They’ve since sold 27 store leases in Quebec and sales continue to slip.
The Montreal-based retailer declared bankruptcy the summer of 2014. After getting a second chance to obtain financing, restructure and redeem themselves, the womenswear retailer announced their official closure in the fall of 2014.
There was tons of excitement around the launch of Target Canada in 2013 however, Canadian shoppers were quickly disappointed. Complaints about the lack of products in-store, poor customer service, and high prices led Target to their demise in early 2015. They are set to close all Canadian locations by the end of spring 2015.
Grand and Toy
Grand and Toy announced they would be closing all 19 of their retail stores late spring 2014. The decision to their brick-and-mortar, after 132 years of business, was due to a huge growth in online sales – only about 3% of sales came from in-store walk-ins.
In the spring of 2014, Staples announced they would close 225 North American locations. The office-supply store closed 140 North American stores by the end of 2014. In similar fashion to Grand & Toy, closures of the Massachusetts-based retailer came after a surge in online sales – more than 50% of Staples’ sales are generated online.
The Japanese-based electronics retailer announced they would be closing all 14 of their Canadian locations at the beginning of 2015. The closures came after poor television and mobile sales. Sony will continue to sell electronics online and through their Canadian retail partners.
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The second part of the story of Sony is here! Sony has been one of the greatest companies of our time but has recently started declining, what's happening? And Why?
The Dutch retailer declared bankruptcy at the end of 2015. Issues with steep promotional pricing in Canada was cited as one of the reasons for Mexx’s demise. They will be closing 315 stores worldwide – 95 of them in Canada.
The Canadian womenswear retailer opened their first store in 1995 and closed all of their locations in the summer of 2014. The retailer made no official announcement as to why they were closing but hosted a storewide closing sale in May 2014.
With retailers like Saks and Nordstrom headed into Canada, Holt Renfrew is getting ready to tackle the competition. The Canadian luxury retailer shut down stores in Ottawa and Quebec City in 2015 as part of a strategy to focus and expand their larger flagship locations.
Future Shop abruptly shut down all of their locations in the Spring of 2015. There were 131 locations in total: 66 of them were closed permanently and 65 of them were converted into Best Buy locations.
Cleo, Ricki’s & Bootlegger
In the Spring of 2015, Comark Inc. was granted an initial order for creditor protection. The Mississauga-based company owns Cleo, Ricki’s and Bootlegger and have been open since 1976. They closed a number of underperforming stores but have since been acquired by Pacific West Commercial Corporation.
In June 2015, Telus announced they would be closing down all 59 Blacks Photography locations. The photography and photo supply store was unable to keep up with the digital age. All stores closed in August 2015.
Here are 26 stores and restaurants that are closing (or have already closed) locations in 2017:
- Abercrombie & Fitch - Closing 60 locations.
- American Apparel - Closing down all 110 stores
- BCBG - Closing 120 stores, but keeping the mini-stores inside Macy’s open. You can also shop this brand at retailers like Bloomingdale’s, Lord and Taylor.
- Bebe - Closing all 168 retail locations, will still sell merchandise online.
- Chico’s - Closing 150 locations.
- Crocs - Closing 160 stores.
- CVS - Closing 70 locations although there are still more than 9,500 locations in operation, with more opening in the future.
- Family Christian Stores - Closing all 240 stores and shutting down shop after 85 years in business.
- GameStop - Closing 150 stores.
- Gander Mountain - Closing 32 stores.
- Gordmans - Closing about 100 stores.
- Guess - Closing 60 stores.
- HHGregg - Closing 88 stores
- JC Penney - Closed 138 stores. See the full list here.
- Kmart and Sears - Closed 108 Kmart stores and 42 Sears stores in 2017. Check out the full list here. Keep an eye on this one: Sears and Kmart have closed about 60 percent of their locations since 2011, it's not looking good for them.
- Macy’s - Closed about 100 stores. See the full list here. They are also making more changes in many locations to better compete with discount outlets. So, you may be able to get your own shoes and makeup without waiting for a sales associate.
- Outback Steakhouse, Bonefish Grill, and Carraba’s Restaurants - Closing 43 locations.
- Payless Shoe Source - Closing 400 stores, check out the full list here.
- Radio Shack - Closed about 200 stores, just 1,300 remain open.
- Rue21 - Closing 400 stores.
- Staples - Closing 70 stores.
- The Children’s Place - Planning to close 300 locations by 2020.
- The Limited - Filed for Chapter 11 bankruptcy and closed all of its 250 stores. They have also closed their online site.
- Vanity - Closing all stores.
- Wet Seal - Closing all stores.
- Whole Foods - Closing nine stores (but opening six).
2. It is being reported that Sports Authority will file for bankruptcy in March. Some news reports have indicated that around 200 stores may close, but at this point, it is not known how many of their 450 stores will be able to stay open.
3. For decades, Kohl's has been growing aggressively, but now it plans to shutter 18 stores in 2016.
4. Target has just finished closing 13 stores in the United States.
5. Best Buy closed 30 stores last year, and it says that more store closings are likely in the months to come.
6. Office Depot plans to close a total of 400 stores by the end of 2016.
The next seven examples come from one of my previous articles ...
8. K-Mart is closing down more than two dozen stores over the next several months.
11. The Gap is in the process of closing 175 stores in North America.
12. Aeropostale is in the process of closing 84 stores all across America.
13. Finish Line has announced that 150 stores will be shutting down over the next few years.
20 Stores with Closures in 2016-2017
- Office Depot – has closed 400 locations in recent years and is in the process of closing 300 more 
- Sports Authority – folding all 460 stores; Dick’s Sporting Goods will buy out some leases 
- Abercrombie & Fitch – up to 370 closures 
- The Children’s Place – Closed 125 in 2016 and plans to close 200 in 2017 
- Walmart – 269 stores will close, but it also plans to open some 400 stores 
- Hancock Fabrics – closing all 255 stores 
- Tailored Brands (Men’s Wearhouse/Jos. A. Bank) – 250 store closures 
- The Limited – closing all 250 stores 
- The Finish Line – closing 150 stores 
- American Eagle – in 2014 they launched a 3-year initiative to close up to 150 stores 
- Wolverine Worldwide (Stride Rite) – unveiled plans in 2014 to close 140 stores in the next few years 
- Chico’s (Chico’s, White House Black Market, and Soma) – will close 120 stores in 2017 
- Aéropostale – closing 113 U.S. stores and 41 Canadian stores 
- Macy’s – 3 closures in 2016, 65 in 2017, 30 expected in the next few years 
- CVS – planning to shut down 70 locations 
- Kmart – 68 closures 
- Ralph Lauren – 50 closures 
- Kohl’s – 18 closures 
- Sears – 10 closures 
- JC Penney – 7 closures in 2016, with “a few” being evaluated for future closings 
Sad news for employees and shoppers of Family Dollar, which announced today that hundreds of stores will close. It seems that the 323 Family Dollar locations--which are owned by a small Charlotte-based chain Dollar Express, and not involved in a 2015 merger with Dollar Tree--will be closing this spring. Layoff notices began going out on this week.
Up to 2,700 part-time and full-time store employees around the country may be losing their jobs, according to the Charlotte Observer. Multiple Dollar Express employees told the Observer they were informed that their last day of employment would be on or around June 2. Stores will begin their liquidation processes soon, said the employees, who asked not to be named for fear of retribution.
More than two years ago, suppliers forgave Family Christian Stores $127 million in debt so that it could remain open. Today, the chain—which bills itself as “the world’s largest retailer of Christian-themed merchandise”—announced it is closing all of its stores after 85 years in business.
Family Christian, which employed more than 3,000 people in more than 240 stores across 36 states, blamed “changing consumer behavior and declining sales.”
“We had two very difficult years post-bankruptcy,” stated president Chuck Bengochea. “Despite improvements in product assortment and the store experience, sales continued to decline. In addition, we were not able to get the pricing and terms we needed from our vendors to successfully compete in the market.
A beloved Toronto gourmet food store has closed its doors after its owners could not keep pace with rising costs.
All the Best Fine Foods, a 32-year-old store selling prepared foods, bread and cheeses, declared bankruptcy on Tuesday. The company had a flagship location in Summerhill in addition to a store near Church and Wellesley, and a commercial kitchen in Leaside.
"The food business is very challenging and the last few years for All the Best have been very challenging," said co-owner Jane Rodmell. "We used our ingenuity, our creativity. We worked hard but we were not able to … keep pace with the rising costs of operation."
Speaking at its analyst day event Thursday, CVS Health executives outlined their long-term strategy for growth, which includes closing 70 stores in the coming months.
The drugstore retailer's overall cost-cutting plans aim for $3 billion in savings from 2017 to 2021.
In addition to store closures, CVS Health CFO Dave Denton said the company is finding efficiencies in corporate shared services that promise to drive down labor costs by 15% to 20%. For retail, that might include instructing overnight pharmacists to provide data entry during the slow hours, he said.
In another blow to a beleaguered region, 47 jobs will be lost on Opaskwayak Cree Nation near The Pas, Man., when the IGA store there closes in the coming weeks.
The area is already bracing for the closure of the Tolko paper mill in early December, while leaders from OCN is also still mulling whether to move the band's casino to Winnipeg because of a lack of business.
Macy’s (M) is slated to close 68 stores and cut 10,000 jobs across the U.S. after holiday sales disappointed and the retailer slashed earnings forecasts. So is your local outlet set to close its doors?
Most of the stores that are closing are in urban locations, with the largest in downtown Minneapolis. The 1.25 million-square-foot facility opened more than a century ago as a Dayton’s department store. Macy’s purchased it in 2005, but has recently been using only about half of the space, the Star-Tribune reported.
Texas is losing eight stores; Florida, five. Three of the stores included in the announcement have already closed, including locations in Honolulu, Hawaii, and North Hollywood, California. This map shows the stores that are being shuttered, color-coded to highlight newly announced closings.
Brampton-based Loblaw Companies Ltd. has announced it will close 52 unprofitable stores over the next year.
The announcement came Thursday (July 21) morning when the company released its second-quarter earnings. It is unclear which stores will be shuttered, but locations will be targeted across the range of company banners and formats.
Loblaw corporate-owned store banners include Loblaws, Extra Foods, Maxi, Maxi & Cie, Provigo, Real Canadian Superstore, Loblaw Superstore, T&T Supermarket and Zehrs.
The once-popular retailer Gap is struggling to keep up with fast-fashion retailers and the decline of mid-priced brands. Gap Inc. announced they would be closing 175 North American locations by the end of 2016.
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John Pilger - The New Rulers of the World
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Bessie Love My wife's niece worked in one of these factories in Honduras. They gave her 3 minutes to eat her lunch. She had to eat it standing up.
milky55way2012"Globalization" is the biggest scam in human history.
ALL the world's problems stem from money, nothing else.
The have's and have-nots.....since money is not a natural resource, debt creates inflation which creates poverty.
This amazing documentary reveals how rich and greedy people created political and economic instability in Indonesia in the 1960s and afterward ruled and exploited the poor human beings for decades. I am shocked to see the cruel face of a handful of so-called human beings.
The Great Crash Is Coming Prepare For The Imminent Financial Crisis 2017
The Great Crash Is Coming Prepare For The Imminent Financial Crisis
Current stock market valuations are not sustainable. In 1929, 2000 and 2008, stock prices soared to absolutely absurd levels just before horrible stock market crashes with economic collapse.
What goes up must eventually come down, and the stock market bubble of today will be no exception and economic collapse 2017 is possible. FAIR USE NOTICE: This video contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.
We are making such material available in our issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law http://copyright.gov/ In fact, virtually everyone in the financial community acknowledges that stock prices are irrationally high right now.
Some are suggesting that there is still time to jump in and make money before the financial crash comes, while others are recommending a much more cautious approach and preparing for the imminent economic collapse.
But what almost everyone agrees on is the fact that stocks cannot go up like this forever. On Tuesday, the Dow, the S&P 500 and the Nasdaq all set brand new record highs once again.
Overall, U.S. stocks are now up more than 10 percent since the election, and this is probably the greatest post-election stock market rally in our entire history. But stocks were already tremendously overvalued before the election, and at this point stock prices have reached a level of ridiculousness only matched a couple of times before in the past 100 years.
Only the most extreme optimists will try to tell you that stock prices can stay this disconnected from economic reality indefinitely. We are in the midst of one of the most outrageous stock market bubbles of all time, and as MarketWatch has noted, all stock market bubbles eventually burst and global economic collapse imminent…
“The U.S. stock market at this level reflects a combination of great demand, great complacency, and great greed. Stocks are clearly in a bubble, and like all bubbles, this one is about to burst.”