The Great Restructuring in retail continues.
In the wake of a disappointing holiday season, J.C. Penney (JCP) said recently that it will close 138 stores stores by the end of the summer. The store closures represent 13% to 14% of the company's current store base and less than 5% of annual sales. They have a negligible impact on net income. J.C. Penney said same-store sales at the locations were "significantly below" the remaining store base and operate at a much higher expense rate due to poor productivity.
The company expects $200 million in annual costs savings from the efforts.
"We believe closing stores will also allow us to adjust our business to effectively compete against the growing threat of online retailers," J.C Penney Chairman and CEO Marvin Ellison conceded.
The news shouldn't come as a shock.
The company was already in the process of closing 150 under-performing Sears and Kmart stores to preserve cash. But, Sears recently announced the closure of an additional eight Sears and 35 Kmart unprofitable stores.
But given how rough a shape Sears is in, the latest decision is hardly a shock.
The female fashion apparel chain is closing 118 locations across the country under the BCBGMaxAzria, BCBGeneration, BCBG Factory and Herve Leger banners in the wake of a Chapter 11 filing. More than 300 stores will remain open during the company's reorganization.
The struggling electronics and appliance retailer began liquidating its assets recently after failing to find a buyer following an early March Chapter 11 bankruptcy filing. The company closed all of its 220 stores in May, resulting in roughly 5,000 layoffs across the U.S.
Pier One Imports (PIR) said that it will close 100 stores through 2019 in order to cut costs. The home goods retailer closed 16 stores last year, and plans to shutter 17 this year.
The company currently operates 313 stores around the world.
Amid years of plunging sales and pressured profits, women's apparel retailer Bebe (BEBE) has thrown in the towel. The company said on Apr. 21 that it will close all 175 of its stores.
Struggling discount shoe retailer Payless filed for Chapter 11 bankruptcy protection recently. As part of the filing, Payless closed about 400 stores as it tries to improve its balance sheet and restructure its debt burden. The company said it may close another 408 stores.
Payless is owned by private equity firms Golden Gate Capital and Blum Capital Partners. The group took over the Payless chain in 2012 as part of the dismantling of Collective Brands.
Gander Mountain, one of the largest outdoor retailers in the U.S., filed for bankruptcy protection under Chapter 11 in April, listing $500 million to $1 billion in assets and liabilities.
After a tough fourth quarter that saw same-store sales crash 16.3% due mostly to tepid mall traffic and people downloading digital games, GameStop (GME) will ax a ton of stores this year. The video-game retailer expects to close as many as 225 stores from around the globe in 2017.
A GameStop spokesman said the store closures are part of a multi-year strategy the company announced in 2011, where it said it would right-size its global store presence by closing between 2% - 3% of its global store base each year.
The company does, however, anticipate opening about 35 new collectibles stores globally, and another 65 new tech focused stores.
It operated 7,400 stores globally at the end of 2016.
As part of its bankruptcy filing, Eastern Outfitters plans to close 48 Bob's Stores.
Struggling private equity-backed youth clothing retailer Rue21 is shuttering nearly 400 stores, which will leave it more than 700 stores in 48 states. On May 15, the company filed for Chapter 11.
As part of its recent bankruptcy, the off-price retailer will close 48 stores.
Struggling fast-food chain Subway closed 359 locations in 2016, marking its first ever net reduction in the number of restaurants. The company's total restaurant count fell 1.3% to 26,744.
Updated from Apr. 17 with new details.
With its handbags no longer super popular, Michael Kors (KORS) is trying to clean up its distribution. The company will close 100 to 125 wholesale locations -- mostly spots inside of department stores -- over the next year.
The yoga apparel maker said it will close 40 of its 55 Ivivva children's stores this year. Nearly half of the sites will be converted to Lululemon (LULU) stores.
The struggling children's apparel retailer recently filed for chapter 11 bankruptcy protection. It has confirmed it will close 350 stores.
Bed Bath & Beyond's (BBBY) CEO Steven Temares said the retailer is considering closing 80 to 100 stores after seeing its profits sink 33% in its recent first quarter. Speaking to analysts, Temares acknowledged that the company has come under fire for not trimming its 1,548-store fleet like other retailers have.
The denim-focused retailer said on July 5 that it filed Chapter 11 bankruptcy. It is unclear how many stores will be closed as part of the reorganization. The company closed 18 stores in 2016.
Editors' pick: Originally published June 23.