Thump In The Morning

Thump In The Morning

Thump In The Morning

As the retail apocalypse drags on, more stores have announced that they will close their doors. Each year, as malls die out and consumers continue to buy more online, the number of retailers closing stores continues to climb. And in fact, some experts estimate that the number of store closings this year could exceed the record-breaking number of closures that we’ve already seen in recent years.

With the pandemic rise, It was  only natural that the number of online shoppers increased worldwide  along with it. As it stands in 2021, the number of digital buyers is at 2.14 billion. That makes 27.6 percent of the 7.74 billion people in the world. In other words, more than one out of every four people you see around you is an online shopper.

The number of online shoppers has been growing over the past few years. In 2021, there were 900 million more digital buyers than there were in 2020—a 4.4 percent year-over-year increase.

The increase should come as no surprise, as internet connectivity penetrates the world and online shopping becomes increasingly convenient.

Exclusive online shopping events offering huge discounts such as Singles’ Day in China, Amazon Prime Day, Black Friday, and Cyber Monday have also played their part in spurring shoppers to hop on the online shopping bandwagon.

Given the rising trend, the potential for an ecommerce store is huge. A deeper look into these ecommerce statistics would go a long way in helping ecommerce store owners better understand the direction of online shopping.

To do that, ecommerce entrepreneurs need to look beyond general questions such as how many people shop online or the number of online shoppers in their target markets and dive into specifics. You’d be shocked at what stores are closing there doors for good.

Here is a list of some of the stores expected to close, or that have already closed.

  • Neiman Marcus

    neiman marcus

    Luxury department store Neiman Marcus was one of the first retailers from this list that filed for Chapter 11 bankruptcy protection at the beginning of last year. While it did recover and emerge from the bankruptcy filing, business isn’t rebounding as expected.

    Additionally, Neiman Marcus was already at the top of Moody’s list of vulnerable retailers. Their financial situation before and even after bankruptcy doesn’t look too promising. And with dwindling foot traffic in malls, it’s unclear what can be done for the department store.

  • Lane Bryant

    lane Bryant Store

    Lane Bryant and Ann Taylor, which belong to the Ascena Retail Group, were listed on USA Today’s list of struggling retailers. And rightfully so, seeing as the group filed for Chapter 11 bankruptcy protection last summer.

    At the time of filing, the New Jersey-based company said it had plans to “reduce their store fleet from approximately 2,800 stores to approximately 1,200 stores” — that’s a 56 percent reduction in total stores. The company has already shut down all of its Catherines plus-size stores.

  • Party City

    Party City Store

    Party City has definitely seen a decline in sales in recent years. Among other reasons, DIY trends, a lack of foot traffic, and a sharp increase in online sales have left the specialty store in trouble for some time now. The party supply store has seen huge losses over the last couple of years.

    Although Party City still does plenty of business through online sales, they have been closing brick and mortar locations. The company already identified approximately 55 locations to be closed, and added an additional 21 stores last year, as well.

  • Office Depot

    Office Depot Store

    As it turns out, brick and mortar stores that specialize in office supplies aren’t all that profitable. Finding more success and profit in business-to-business services, Office Depot announced it plans to close another 90 locations. This is in addition to the 55 store closures that already occurred last year.

  • Rite Aid

    Rite Aid Store

    According to Moody’s Investor Service, Rite Aid is a “very high credit risk” with nowhere to go. Unfortunately, it’s neither large enough to compete with Walgreens and CVS nor rich enough to rebrand itself to gain a marketing edge.

    While Rite Aid tried to merge with a grocery chain, Albertsons, to alleviate some of the pressure, the deal ended up falling apart. The drug store also tried to work out a merger with Walgreens that fell apart, too. Instead, Rite Aid ended up selling a whopping 1,932 stores and three distribution centers to competitor Walgreens in a diminished deal.

  • Kohl's

    Kohls Store

    Kohl’s has historically performed much better than some of the country’s higher-end retail clothing stores, thanks in part to the store’s lower prices and constant discounts. Like all other brick and mortar stores, however, Kohl’s is not immune to the woes of the retail apocalypse.

    Kohl’s was already experiencing stagnant sales in previous years — we’re talking losing well over half a billion dollars in revenue. To combat losses, Kohl’s decided to take a proactive role. They decided to close “low performing” stores, which were by and large mall-based stores.

  • Stein Mart

    Stein Mart Store

    At first, discount department store Stein Mart announced that it had filed for Chapter 11 bankruptcy protection, and would be closing “a significant portion, if not all” of its brick and mortar stores across 30 different states. The store had been in business since 1908.

    However, it was only one day later that Stein Mart decided to close up all 279 of its store locations for good. They hired five firms to help with the going-out-of-business process and liquidated everything — including merchandise, store fixtures, furniture, and equipment.

  • Guitar Center

    Guitar Centar Store

    This is so sad for my fellow musicians and DJ’s. Even with online sales up, Guitar Center as a whole hasn’t been faring so well. During the first half of last year, total sales fell by nearly 20 percent. But for years, the instrument retailer has struggled against its debt load, apparently left from a couple of private equity takeovers.

    Although they narrowly avoided bankruptcy for the first part of the year, they did wind up filing for Chapter 11 bankruptcy protection by the end of last year. They have embarked on a reorganization plan to help shed more than $800 million in debt, but it’s worth noting that the company still remains under a huge amount of debt.

  • Bath & Body Works

    Bath & Body Works Store

    Parent company L Brands revealed that several of their Bath & Body Works locations in the United States would close last year — plus one location in Canada. The company has not yet confirmed which locations are on the chopping block, though.

    All in all, L Brands announced that they will close a total of 250 of their stores, including at least 50 Bath & Body Works locations.

  • McDonald's

    Mc Donalds Restaurant

    Times must be tough if America’s favorite fast-food joint, McDonald’s, is closing up shop. Of course, not all of them are closing, but the fast-food giant did announce that it is permanently closing 200 of its 14,000 U.S. locations this year.

    Locations with lower sales volumes, usually found inside of Walmart stores, make up over half of the restaurants on the chopping block. According to the company, the location closings were already planned for future years, but are now being accelerated.

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