It appears that no business, big or small, has been able to avoid the trend of massive store closures in recent years.
Walmart, Bed Bath & Beyond, Sears, CVS, H&M, you name it, have likely had to shut down at least a few (if not hundreds) of locations. But don't assume you're safe just because your local retailer has been spared so far. A well-known retail chain is preparing to close even more stores next month after cutting several other stores this year.
Keep reading to find out which company will continue with its closures next month. When Kroger closed two Ralphs and one Food 4 Less in Los Angeles, the company said it was due to underperformance rather than a hazard benefit. However, not everyone was convinced, and two board members filed a motion to investigate precisely why they closed in April last year. Two stores in Illinois and three in Arkansas also closed due to poor performance.
In New Jersey, closures include stores in Paramus, Manalapan and Flanders. While 25 stores will close, the remaining 33 are expected to stay open as the beauty supply store reorganizes. Due to the pandemic, most retailers manage liquidation or closing sales differently. Like other clothing retailers with a strong commitment to shopping malls, the company and its brands were dealing with declining foot traffic long before the coronavirus pandemic, leading to an increase in the number of retailers filing for bankruptcy.
Modern retail is at a tipping point, as retailers face struggling physical storefronts, massive debt, and inefficient operations, among other issues. The retailer liquidated its assets and sold its intellectual property, retail store leases and the lease of its corporate office and distribution center to help pay off debts. Employees at stores that will soon close are being offered comparable features at other CVS locations, and prescriptions are being transferred to nearby CVS pharmacies to ensure that patients continue to have uninterrupted access to pharmaceutical care, the spokeswoman said. Reportedly, domestic retail chains with discounted prices, such as TJ Maxx and Ross, which have a much larger retail presence, have experienced growth during the pandemic, even though the industry relies on physical sales. Formerly known as Dress Barn, the company was heavily dependent on retail sales in shopping malls, but its revenues plummeted in recent years with increasing competition from online retailers and D2C brands. The retail industry is facing an uncertain future as more companies are forced to close their doors due to the pandemic.
It's important for consumers to stay informed about which companies are closing stores so they can make informed decisions about where they shop.