With fewer individuals procuring brick-and-mortar shops amid the pandemic, the retail trade is having a tough time rebounding. However, it’s not simply mom-and-pop outlets which have needed to shutter attributable to monetary stress caused by the pandemic—quite a few main chains have been pressured to make robust choices to remain afloat. Now, beloved kids’s retailer The Children’s Place has announced plans to close 122 stores in 2021 amid gross sales losses. And for some procuring experiences you’ll by no means have once more, This Beloved Chain Is Closing All Its Stores.
In a March 9 assertion, Children’s Place President and CEO Jane Elfers introduced that, whereas the shop’s fourth quarter gross sales “exceeded our expectations in both our digital and store channels,” gross sales had dipped considerably between 2020 and 2021. The retailer’s internet gross sales have been down 7.8 p.c year-over-year, a change the model attributed particularly to the pandemic.
The Children’s Place’s gross sales lower was “primarily driven by the impact of permanent and temporary store closures and the negative impact of reduced operating hours in our mall stores, as mandated by the mall owners,” the model mentioned in a press release.
As a way of preserving The Children’s Place afloat, “the Company is planning to close a total of 122 stores in fiscal 2021, with approximately 25 stores closing in the first quarter, and approximately 97 closures planned by the end of fiscal 2021,” the model introduced. The closures observe the 178 brick-and-mortar shops shuttered in 2020.
The Children’s Place is much from the one model that’s suffered critical losses amid COVID, nevertheless. Read on to find which different shops are having to shut up store. And for extra shops that aren’t lengthy for this world, This Popular Department Store Just Filed for Bankruptcy.
A complete of 100 Gap and Banana Republic shops around the globe will shutter within the close to future amid falling gross sales. While Old Navy and Athleta, each owned by Gap Inc., noticed gross sales rise by 7 and 26 p.c, respectively, Gap’s same-store gross sales fell 6 p.c year-over-year, whereas Banana Republic’s fell 22 p.c, prompting the model to pursue closures. However, since each Old Navy and Athleta have carried out so nicely over the previous year, Gap Inc. is opening up to 40 new Old Navy stores and as much as 30 new (*122*). And for the newest retailer closure information delivered straight to your inbox, join our day by day e-newsletter.
Even the happiest procuring expertise on earth couldn’t stand up to the monetary turmoil caused by the pandemic. In early March, the Disney Store introduced that it could be closing up a minimum of 20 p.c of its retail shops, focusing as an alternative on its e-commerce business.
“Over the past few years, we’ve been focused on meeting consumers where they are already spending their time, such as the expansion of Disney store shop-in-shops around the world. We now plan to create a more flexible, interconnected e-commerce experience that gives consumers easy access to unique, high-quality products across all our franchises,” mentioned Stephanie Young, Disney’s president of client merchandise, video games, and publishing, in a statement. And for extra corporations closing up store, This Popular Beauty Brand Is Shutting Down for Good.
Popular present and card retailer Paper Source introduced its submitting for Chapter 11 chapter on March 2. The model, which has been in business for 37 years, will likely be shuttering 11 of its shops within the close to future. “As with many other retail brands, [Paper Source has] sustained deep damage to their finances and operations as a result of the ongoing COVID-19 pandemic,” mentioned Paper Source CFO Ronald Kruczynski, in response to court documents obtained by Retail Dive. He added that the company could be present process a “comprehensive restructuring” to enhance profitability.
On Feb. 18, sun shades retailer Solstice introduced that it had filed for Chapter 11 chapter safety after gross sales had fallen greater than 50 p.c between 2019 and 2020. However, regardless of the model’s monetary woes, CEO Mikey Rosenberg mentioned he was hopeful about Solstice’s recovery. “We are optimistic about reorganization as we continue to see increasing business in our stores as COVID restrictions are lifted and in the new fashions that our vendors are providing,” Rosenberg mentioned in a press release. And for extra shops faltering amid the pandemic, This Iconic Chain Is Closing Up to 50 Stores.