In 2017, retail bankruptcies were at about 15 percent of all business bankruptcies filed. Unfortunately, it doesn’t appear that businesses across the nation are out of the woods yet. The trend of major retail stores going out of business 2018 is expected to increase.
Out of the total number of business bankruptcy filings in 2017, Florida ranked at number four. Well-known retailers that have been in business for years are being hammered by competition from giants like Amazon and Walmart. Here’s a roundup of the stores going out of business 2018.
Stores going out of business 2018 include the shocking Toys R Us announcement revealing its intent to file for bankruptcy. The iconic, New Jersey-based corporation began liquidation sales at Toys R Us and Babies R Us in stores nationwide this past month. Once the stores have completed total liquidation, the corporation will close its doors for forever.
Macy’s has plans to close up to 30 stores in 2018 as leases expire or when liquidation sales are finished. This is in addition to the 70 locations closed in 2017. In a press release, the company announced positive comparable sales in November/December 2017. The corporation continues to focus on strong digital and mobile growth in an effort to stabilize its physical locations.
In January, liquidation sales began after it was announced 39 Sears and 64 Kmart locations would be shut down in early 2018. More than 350 locations were shut down in 2017.
Over the next three years, Gap Inc. will be closing 200 Gap and Banana Republic stores throughout the nation. However, the corporation plans to open 270 new locations for Old Navy and Athleta, the brands experiencing steady growth.
This retail giant operates women’s clothing lines such as Ann Taylor, Lane Bryant, Loft, Justice, and Dress Bar, will be closing at least 268 stores by July 2019. The company plans to attempt negotiations involving the rent for the remaining 399 locations, which will be closed if an agreement cannot be settled.
Southeastern Grocers, the parent company, plans to close about 100 stores between Winn-Dixie, Harveys, and Bi-Lo across the U.S. in 2018. It officially filed for Chapter 11 bankruptcy in March 2018. The store closings are an attempt to restructure the company.
Having been around since 1961 and known best for its ear piercing, Claire’s has been struggling financially due to a lack of foot traffic in the local malls. It officially filed for bankruptcy in March 2018. After already closing 166 stores in 2016, the teen jewelry and accessories store will be closing another 92 stores in 2018.
In 2017, J. Crew Group announced the closing of 50 stores. In March, it announced that it would be shutting an additional 20 stores in 2018. The company’s sales are continuing to spiral downward, making the risk of bankruptcy higher.
With sales down as a result of shoppers purchasing their clothes online, Abercrombie & Fitch have been forced to prepare to shut down several stores as leases approach expiration. The store has been closing its mall locations to restructure for the expansion of online shoppers. It will continue to close at least 60 U.S. stores in 2018.
After seeing a decline in profits from 2016 to 2017, the notable luxury fashion brand announced its plan to improve profits. It also has plans to close anywhere from 100 to 125 of its retail brick-and-mortar locations as a part of its plan to make room for future financial improvements.
Best Buy will be closing down about 250 cell phone stores in mall locations across the U.S. Even though it is shutting these down, it will still sell mobile phones at its larger locations.
In 2017, J.C. Penney closed over 140 stores. It has recently announced it will be closing a distribution center and an additional eight stores in the U.S. This will leave the retailer with about 875 stores across the nation as it tries to restructure its corporation’s debt.
With more than 40 years of operating in 28 countries worldwide, the athletic footwear retail store plans to close 110 underperforming stores across the nation. Foot Locker will continue closing down additional stores as it sees fit in the coming year.
Even though the Guitar Center is the world’s biggest major retailer of guitars and other instruments, it’s not immune to the change of the times. After 50 years of business, the financially distressed company has about a year left to refinance nearly $900 million in debt. Although the company has not officially filed bankruptcy, if it can’t successfully restructure its debt then it will be forced to start closing its doors in the near future.
In 2017, Starbucks announced the closing of all Teavana locations in the nation. However, a court ruling is currently preventing the coffee chain from closing Teavana locations in all Simon-owned malls. This doesn’t mean sales are improving but it does mean the company will continue taking the hit from underperforming stores until the company can permanently close Teavana’s doors.
The popular Walmart-owned warehouse club already abruptly shut down 63 clubs. At least 12 of them will be converted into e-commerce fulfillment centers to keep pace with the rising demand from online shoppers. Future Sam’s Club closings have not been announced as of yet but it would come as no surprise if additional stores were suddenly shut down.
If you’re in possession of gift cards for any of the stores listed above, it would be a wise move to go ahead and spend them while you still have time. Once the stores have permanently closed, they’re worthless. The year isn’t over yet, and this may just be the beginning of stores going out of business 2018.