The Post-Apocalyptic Retail Landscape

While news of retail store closures has seemingly slowed since last year’s “retail apocalypse,” there has still been a steady stream of chains reporting multiple location shutdowns in 2018. Just last week, for example, Lord & Taylor announced it would shutter 10 stores, including its Fifth Avenue flagship.

In fact, the pace is not far behind last year. Analysts, including CoreSight Research and others, have tracked nearly 3,000 announced store closures in the first half of 2018. Approximately 7,000 closures were announced in 2017, with 5,000 locations actually going out of business during the year.

Other 2018 closure announcements of interest to companies selling licensed products:

• Sears Holdings reported at the end of May that it would shut down 63 more locations, following 103 stores terminated in April and 63 in January. It closed 350 sites in 2017.
• Bon Ton Stores is liquidating, shuttering 256 department stores in 23 states in the process. Hilco Streambank is fielding acquisition offers for the chain’s IP.
• Toys ‘R’ Us ceased operations of 735 U.S. stores earlier this year, after its high-profile bankruptcy declaration.
• Foot Locker announced it would put 110 locations out of business due to slower mall traffic and a refocus on e-commerce.
• JCPenney said it would shutter eight of its department stores, along with a distribution center, following 140 closings in 2017.
• Macy’s ended the life of 11 stores in the first half of the year, part of a multi-year mission to shut down 100 locations over time. Another 19 are expected to close as their leases expire later in 2018.
• Ascena Retail Group is winding up operations in at least 268 stores, including under its Lane Bryant and Justice nameplates, both of which are involved in licensed collaborations, as well as Ann Taylor, Loft, Dress Barn, and others.
• Claire’s shut down 92 stores after declaring Chapter 11 bankruptcy this spring, marking the latest round of closures for the chain.

Other stores going out of business in 2018 include 250 Best Buy small-format electronics shops, 200 GNC nutrition stores, 20 J. Crew locations, 60 Abercrombie & Fitch stores, 63 Sam’s Clubs, 379 Teavana stores, and up to 125 Michael Kors shops.

Of course, some of this news is balanced by announcements of store openings. Gap Inc., for example, said in 2017 that it would close 200 Gap and Banana Republic stores through 2020, but it also plans to add 270 locations to its Old Navy and Athleta chains. Target, Dollar General, Dick’s Sporting Goods, Ross Stores, and Aldi are among the other retailers that have announced store openings in 2018.