26 Large Retailers Besides J.C. Penney Are Closing Waves of Stores

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.

As TheStreet reported in January, Ellison said at a real estate conference the company would move to close more stores -- after shuttering seven last year -- following a lackluster holiday season. "We have certain locations that we readily admit we have to downsize," Ellison said, adding, "There are some smaller market locations where we have to decide, does the mall or our store meet our brand standards?"
 
Here are several other retailers continuing to rightsize their store fleet amid the shift to digital shopping or other external pressures.
 

Struggling Sears just said it will close even more stores.
Struggling Sears just said it will close even more stores.

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.

Watch More: A Look Back at Troubled, and Beloved, Retailer Sears

Macy's is closing 68 stores (as part of a plan to slash 100 more) by early spring in an effort to save money amid weak store traffic.
Macy's is closing 68 stores (as part of a plan to slash 100 more) by early spring in an effort to save money amid weak store traffic.

Macy's (M) reported weak first quarter results, and hinted it may close more stores than it has outlined. 

 

Foot Locker plans to close 100 stores in 2017.
Foot Locker plans to close 100 stores in 2017.

Foot Locker (FL) pre-announced a mixed first quarter due to delayed tax refunds. 

Kohl's closed 16 stores in 2016.
Kohl's closed 16 stores in 2016.

Kohl's (KSS) said earlier this year that it would operate 500 of its roughly 1,150 stores with much lower square footage and try to lease out the leftover space to other retailers.

CVS Health is in the process of closing 70 stores due to uncertainty around the Affordable Care Act.
CVS Health is in the process of closing 70 stores due to uncertainty around the Affordable Care Act.

Meanwhile, CVS Health's (CVS) profits are also under pressure.

Office Depot closed 123 stores in 2016 and expects to shutter 75 more in 2017.
Office Depot closed 123 stores in 2016 and expects to shutter 75 more in 2017.

Can't blame office supplies retailer Office Depot (ODP) for closing stores, it's really struggling.

Abercrombie & Fitch closed 54 stores in 2016, mostly in the U.S.
Abercrombie & Fitch closed 54 stores in 2016, mostly in the U.S.

Amid continued sales declines, teen apparel retailer Abercrombie & Fitch (ANF)   said that it will close 60 stores in 2017, mostly in the United States. The company is now exploring a sale.

BCBG has gone bust, and will close stores as a result.
BCBG has gone bust, and will close stores as a result.

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.

HHGregg has died.
HHGregg has died.

The end has arrived for HHGregg (HGG)  .

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 wants to save money, so is closing a ton of stores.
Pier One Imports wants to save money, so is closing a ton of stores.

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.

Staples will continue to be a store closing machine.
Staples will continue to be a store closing machine.

Staples (SPLS) closed 48 stores in North America last year. Following another rough year, the office supplies giant will shutter 70 stores in North America this year.

Even Tiffany & Co. isn't immune from retail's struggles.
Even Tiffany & Co. isn't immune from retail's struggles.

After another challenging year of sales that caused it to close five stores, Tiffany & Co. (TIF) plans to keep pruning its store base in 2017. The high-end jeweler will close six stores this year.

The company currently operates 313 stores around the world. 

Bebe will vanish.
Bebe will vanish.

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. 

Wave goodbye to your local Payless, possibly.
Wave goodbye to your local Payless, possibly.

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 has gone bust.
Gander Mountain has gone bust.

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.

The company, which touts itself as being "America's Firearms Supercenter," blamed its filing on slowing foot traffic. The company will shutter 32 stores. 

GameStop is under siege.
GameStop is under siege.

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.

Bob's Stores is vanishing.
Bob's Stores is vanishing.

As part of its bankruptcy filing, Eastern Outfitters plans to close 48 Bob's Stores.

Rue21 is crippled by debt.
Rue21 is crippled by debt.

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. 

Gordmans says goodbye.
Gordmans says goodbye.

As part of its recent bankruptcy, the off-price retailer will close 48 stores.

Subway retrenches.
Subway retrenches.

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.

Michael Kors isn't looking sexy.
Michael Kors isn't looking sexy.

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.

Lululemon is focusing on its core brand.
Lululemon is focusing on its core brand.

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.

Gymboree is on the brink of ruin.
Gymboree is on the brink of ruin.

The struggling children's apparel retailer recently filed for chapter 11 bankruptcy protection. It has confirmed it will close 350 stores.

Bed Bath & Beyond is putting some stores to sleep.
Bed Bath & Beyond is putting some stores to sleep.

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.

True Religion hits the skids.
True Religion hits the skids.

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.

Children's Place slims down.
Children's Place slims down.

Children's Place (PLCE) CEO Jane Elfers recently told TheStreet the company will close 300 stores by 2020 in a bid to operate more profitably. 

Editors' pick: Originally published June 23.

Don't miss these retail videos on TheStreet:

Advertisement

More from Stocks

Dow Futures Tank as Trade War Fears Grip Wall Street

Dow Futures Tank as Trade War Fears Grip Wall Street

Why GE's Stock Has Fallen 9% in the Last 30 Days

Why GE's Stock Has Fallen 9% in the Last 30 Days

5 Stock Picks Under $10 for Millennials

5 Stock Picks Under $10 for Millennials

3 Complicated Investing Strategies Millennials Love

3 Complicated Investing Strategies Millennials Love

Tyson Foods CEO: We Aren't Done Making Deals

Tyson Foods CEO: We Aren't Done Making Deals