Many retailers have followed up their holiday 2014 sales results with announcements of store closings. Analysts believe these announcements are just the beginning of a “retail earthquake hitting America”. “Because of the changes in buying habits of U.S. consumers, as a result of the continuing hesitancy to spend, the 2014 holiday season was not sufficiently successful for many retailers that have either over expanded, fell out of favor or had insufficient capital and merchandise.”, said bankruptcy expert Chuck Tatelbaum. Online sales account for 13% of all retail sales.
J.C. Penney is closing 39 of its stores, laying off 2,250 workers. Macy’s is closing 14 of its 790 stores across the country. “Our business is rapidly evolving in response to changes in the way customers are shopping across stores, desktops, tablets and smartphones,” explained Terry Lundren, Macy’s chief executive officer. “We must continue to invest in our business to focus on where the customer is headed – to prepare for what’s next.”
Sears Holdings, which has over 1,830 Sears and Kmart stores, closed 200 stores in 2014 and will close 235 underperforming stores, explaining that they “expect to migrate the shopping activity of highly engaged members who previously shopped closed stores to alternative channels”.
- Wet Seal closing 338 retail sotres, laying off 3,700 employees.
- Aeropostale closed 175 stores in 2014 and have asked investors to apporove closing 1,100 stores in 2015.
- RadioShack closed175 stores in 2014 and have asked investors to apporve closing 1,100 stores in 2015.
Source: WND.com
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