It seems that no company, big or small, has been able to escape the trend of massive store closures in recent years. Walmart, Bed Bath %26 Beyond, Sears, CVS, H%26M, you name it, have probably had to close at least a handful (if not hundreds) of locations. But don't assume you're safe just because your local retailer has been saved so far. A popular retail chain is preparing to close even more stores next month after taking the axe to several other locations this year.
Read on 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 because they were underperforming rather than a hazard benefit. However, not everyone was convinced, and two board members filed a motion to investigate exactly 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 remain 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, causing 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 problems. 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 reduced prices, such as TJ Maxx and Ross, which have a much larger retail presence, have experienced growth amid the pandemic, even though the industry depends 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.