Sears is closing 63 more stores

November 10, 2017 in Latest News

 

Sears Holdings is shuttering another round of stores, the retailer’s employees learned on Thursday. But those doors won’t be closed until after the holidays.

The latest list of store closures includes 45 Kmart locations and 18 Sears boxes. Closings are expected to begin in late January of next year. Meantime, liquidation sales will begin as early as Nov. 9.

“Sears Holdings continues its strategic assessment of the productivity of our Kmart and Sears store base and will continue to right size our store footprint in number and size,” a memo reads on the company’s website.

“In the process, as previously announced we will continue to close some unprofitable stores as we transform our business model so that our physical store footprint and our digital capabilities match the needs and preferences of our members,” Sears said.

The embattled department store chain has been looking for ways to keep its core businesses afloat. Those initiatives include selling off in-house brands, seeking loans from Sears’ CEO, Eddie Lampert, and recently teaming up with Amazon to market Sears’ Kenmore appliances.

Assets sales, for Sears, could be another source of operating cash.

In Sears’ latest quarter, same-store sales tumbled more than 11 percent, as total revenue fell to $4.37 billion, from $5.66 billion, and was driven lower because of recent store closures, according to the company.

In turn, Sears is testing smaller store formats across the U.S., and in some cases moving to occupy a pint-sized portion of a bigger box, as mall operators look to redevelop their properties.

Sears shares were falling about 3 percent Friday morning, and are down more than 40 percent in 2017.

Find out if your local Sears or Kmart store is one of those being closed.

Source: CNBC

Shares of this sports retailer are crashing, dragging Foot Locker, Nike down with it

July 26, 2017 in Latest News

 Sporting goods retailer Hibbett Sports issued a profit warning Monday that sent its shares spiraling down more than 25 percent and delivered a blow to some of the company’s peers.

Hibbett said it expects its comparable-store sales — a metric closely watched by Wall Street for retail stocks — to fall about 10 percent during the fiscal second quarter on account of “very challenging sales trends.”

The drop in sales combined with “significant pressure on gross margins” is expected to result in the company reporting a loss of 19 cents to 22 cents per diluted share for the second quarter, Hibbett said.

The retailer’s forecast sent shock waves across the entire sporting goods sector, with shares of Foot Locker falling 3.9 percent, Dick’s Sporting Goods dropping about 2.4 percent, and Finish Line was down about 4.8 percent. Sporting apparel brands also took a hit, with Nikeshares sliding 1.2 percent, and Under Armour‘s stock dropped about 2.9 percent Monday morning.

The downward pressure from these stocks was weighing on the S&P Retail ETF (XRT), which was recently down about 1.1 percent.

“Hibbett’s results suggest that the sports market is still in a state of flux following the recent spate of bankruptcies,” Neil Saunders, managing director at GlobalData Retail, told CNBC.

“This, combined with the fact that consumed interest in sports has waned slightly, has been unhelpful to sales and especially to margins.”

Hibbett also said it launched a new e-commerce platform that is integrated with its stores, so shoppers can view available in-store inventory and also fulfill online orders from stores.

“Despite the difficult retail environment, the Company remains focused on improving its business for the long term,” Hibbett CEO Jeff Rosenthal said in a statement. “Launching an e-commerce site has been a key strategic goal for Hibbett, and we took time to invest in our omnichannel infrastructure to do it the right way.”

Hibbett is in a particularly weak position compared with its rivals and doesn’t have as much “financial muscle,” GlobalData Retail’s Saunders said. Thus, the retailer has made “lackluster efforts” in investing in digital and won’t reap as many benefits, he added.

“Hibbett used to point out that the local nature of its store locations made it defensible against larger players and online. That logic no longer applies, and Hibbett is feeling the pain of not investing in new channels fast enough,” Saunders said.

With Monday’s declines, shares of Hibbett Sports have tanked more than 60 percent over the past 12 months, and the stock is down about 62 percent for the year so far.

Source: CNBC

 

RIP Retail: These 19 retailers are closing hundreds of stores in 2017

July 20, 2017 in Latest News

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.

Gymboree

Gymboree is scaling back its playground. It’s closing more than a quarter of its kids’ clothing stores as it tries to adapt to an “evolving retail landscape.”

The company filed for Chapter 11 bankruptcy protection on June 11; exactly one month later, it announced it was shutting down 350 of its Gymboree and Crazy 8 locations, out of a total of nearly 1,300.

Payless

Payless ShoeSource filed for Chapter 11 bankruptcy protection in April and said it would shut down around 400 of its weaker stores. In May, the company indicated it could close 408 additional locations.

The discount footwear chain — founded more than 60 years ago in Topeka, Kansas — has found itself running behind online competitors.

RadioShack

RadioShack used to be everywhere, but now the electronics chain has largely vanished from the retail map. The company that once operated 7,300 stores says it closed more than 1,000 of its remaining locations over Memorial Day weekend — leaving just 70 stores still operating.

The retailer that began in Boston in 1921 says the closings continue a move from brick-and-mortar stores to RadioShack.com.

More on this

J.C. Penney

Mall mainstay J.C. Penney says it’s shutting down as many as 140 of its department stores — up to 14 percent of the total — by mid-2017. The company is offering 6,000 employees early retirement.

Closing stores will allow Penney to “effectively compete against the growing threat of online retailers,” chairman and CEO Marvin Ellison said in a news release.

Macy’s

After shuttering dozens of stores in 2016, department store giant Macy’s began 2017 by announcing plans to close 68 more of its locations, including a store in downtown Minneapolis that opened in 1902. The company estimates that 3,900 jobs will be lost as a result of the closures.

“We continue to experience declining traffic in our stores,” Macy’s CEO Terry Lundgren said in a news release.

Sears and Kmart

Struggling Sears Holdings Corp. began the year saying it would shut down 42 of its Sears stores.  In May it moved to close a dozen more, in June another 20 locations were added to the closure list, and in July eight more were targeted.

Where will it end? Here’s one possible clue: In a March 21 filing with regulators, the retailer warned that there’s “substantial doubt” about the company’s ability to continue.

At the start of 2017, Sears’ parent company said it also was closing 108 of its Kmart discount stores. In the spring, the company quietly started winding down business at 18 additional Kmart locations. And in July, 35 more made a closings list.

The stores going out of business in 2017 have included the very first Kmart, which opened in 1962 in Garden City, Michigan.

The Limited

In early 2017, women’s clothing retailer The Limited announced it was turning out the lights at all 250 of its stores.

The company showed signs of doom during its major holidays sales (with a no-returns policy) and ultimately filed for bankruptcy. Some 4,000 workers were laid off, according to Business Insider.

Abercrombie & Fitch

Abercrombie & Fitch — whose torn jeans and ripped models epitomized cool in the 1990s and early 2000s — says it will shut down 60 of its U.S. stores in 2017 as their leases expire. That’s out of approximately 285 stores worldwide.

Research group Fitch Ratings predicts Abercrombie will continue to struggle.

Michael Kors

Luxury fashion brand Michael Kors announced in May it would be closing up to 125 of its more than 800 retail stores over the course of two years.

The company is in “a difficult retail environment” and under pressure from price-cutting rivals, Kors chairman and CEO John Idol says.

More from Bankrate

Guess

Contemporary apparel, footwear and accessory brand Guess says it’s closing 60 of its stores by the end of the year. The company says in a statement that it’s shrinking its footprint because its business in the Americas has been “soft.”

As of April 2017, Guess operated about 950 stores worldwide.

American Apparel

The hip U.S.-made clothing retailer American Apparel filed for bankruptcy early in 2017 and has since closed all of its more than 100 U.S. stores. Canada’s Gildan Activewear acquired the American Apparel brand but passed on taking over the retail stores.

hhgregg

Electronics and appliance chain hhgregg filed for Chapter 11 bankruptcy protection in early 2017 and announced plans to close 88 of its 220 stores. The retailer says it expects to emerge from bankruptcy as a stronger and more agile company. The closings will eliminate approximately 1,500 jobs.

BCBG

Another chain going to bankruptcy court in 2017 is the women’s apparel retailer BCBG Max Azria. It filed for Chapter 11 in March after announcing it would shutter 120 of its locations, more than a quarter of the total.

Acting Interim CEO Marty Staff says BCBG is trying to address “the shift in customer shopping patterns and the growth of online shopping.”

CVS

Pharmacy giant CVS says it will close 70 stores in 2017, out of its total of more than 9,600.

The company says the effort is part of streamlining initiative to improve efficiency, lower overall costs and remain nimble in an ever-changing health care environment.

The Children’s Place

The Children’s Place, a clothing chain for kids, announced in March 2015 that it would close approximately 200 stores through 2017.

The retailer had originally said it would shut down 125 stores through 2016, but it expanded that plan because of a weak outlook. As of January, The Children’s Place operated about 1,040 stores.

Wet Seal

Early in 2017, teen fashion retailer Wet Seal closed its remaining 171 stores. The company had been shrinking since filing for bankruptcy protection in January 2015. The Wall Street Journal reports Wet Seal’s sales dwindled because of fading foot traffic at shopping malls.

rue21

Teen apparel chain rue21 began shuttering some 400 stores of its nearly 1,200 stores in April and announced a bankruptcy filing the following month. In a news release, CEO Melanie Cox says even in a tough business climate, the company continues to enjoy “an enthusiastic and loyal customer base, and hundreds of highly performing stores.”

Bebe

Women’s clothing seller Bebe closed all 175 of its brick-and-mortar stores this spring and said it would explore new strategies for its business. The company had previously said it would shut down just 21 locations.

Sears, Kmart to close 43 more stores as retail crisis continues

July 10, 2017 in Latest News

Sears Holdings continued its steady drip of store closures Friday with the announcement that it would close 35 more Kmart locations and eight Sears stores.

The department-store chain’s troubles have included several rounds of store closures this year, now totaling more than 300.

Although the iconic American department store chain still has more than 1,000 locations, Sears has buckled under pressure from online competitors, having failed to reinvent its traditional store experience.

“We have fought hard for many years to return unprofitable stores to a competitive position and to preserve jobs and, as a result, we had to absorb corresponding losses in the process,” Sears CEO Eddie Lampert said in a blog post.

“It is obvious that we don’t make decisions to close stores lightly. Our efforts have been, and will continue to be, fact-based, thoughtful and disciplined, with the goal of making Sears Holdings more relevant and more competitive for our members and other constituents.”

The new closures include four Kmarts in Florida and three in Ohio, and three Sears locations in Indiana. (See the full list.)

Sears is one of many retail giants struggling to find its footing, or simply survive, amid a landscape dramatically transformed by a shift to online shopping and rise of Amazon.

J.C. Penney has said it will shutter 138 locations, roughly 14% of its stores, and give buyouts to 6,000 employees. Macy’s plans to shut 68 stores. Radio Shack, which has sought bankruptcy protection twice in two years, has closed more than 1,000 locations since Memorial Day weekend. And one-time mall favorites Bebe, The Limited, and Wet Seal have closed or are in the process of shuttering all of their storefronts.

Sears’ latest round of cuts comes less than a month after the most recent round, in which the company quietly announced plans to close 20 locations.

 Sears acknowledged in March that there was “substantial doubt” it would survive on its own, though the company said its cost-cutting maneuvers and other retail strategies would greatly improve its chances of carrying on. Lampert has blasted critics for treating Sears like it’s dead.

Lampert said Friday in a blog post that the company would add small-format locations, though he did not provide specifics on the plan.

The company is close to meeting its previous target of $1.25 billion in cost cuts for the year, which includes the store closures and corporate layoffs. And it said Friday that it had gotten an agreement that would allow it to borrow up to $500 million more from a current loan, as well as finalized the sale of more than $200 million in properties which allowed it to pay off part of its debt.

“We expect additional real estate sales to pay down even more of our debt and to generate liquidity for the company,” Lampert said in the blog post.

Sears has also raised about $900 million by selling its Craftsman brand.

 

Source: USA TODAY