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Forums - General Discussion - TOYS 'R' US is considering closing all of it's U.S. stores

Nymeria on 16 March 2018
FiveOVER said:
Blame Star Wars for this.

I think this has been building for a good decade now, but it doesn't help when a big bet falls flat.  The clearance section at mine still has Star Wars toys from Force Awakens and Rogue One, so Last Jedi stuff is just piling one.  I think the high end figures can still do well, but if the goal is to move volume the price points seem to be too high.  That, and my guess is many people own the characters or ships they want.  Don't need a third or forth Millennium Falcon for example.



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Raistline on 16 March 2018
konnichiwa said:
Ka-pi96 said:

Will never happen. They'll always be people that like going to actual shops and they'll also be occasions where people are too impatient to wait for an online order to be delivered.

They'll be less demand for actual stores, but that will just mean rent prices will be forced down meaning the remaining ones won't need to sell as much to remain profitable and so it will be easier for them to stick around. Plus, some stores (coffee shops) will keep appearing rather than disappearing

Well all is ofcourse hypberbole but it seems to going fast.   When the economy is doing well but you still lose 30K retailjobs in December (that's basically the Prime time for retailers to hire people) you know retailers is hurting.

So many people own amazon prime and even hase same deal dlivery so the wait isn't that long especially if the number of retailers around you are closing and you only option is a 45 minute drive to a shop and back.

Just a small list of some of the biggest one who are closing down some stores:

Abercrombie & Fitch

The once-prominent fashion retailer said during its fourth quarter earnings call that it would close as many as 60 U.S. stores in 2018 through expiring leases, while also adding 11 U.S.-based full price store locations. Abercromie has placed an increased emphasis on its direct-to-consumer efforts, with CEO Fran Horowitz called the brand's "biggest storefront."

Abercromie & Fitch shuttered about 40 store locations in 2017.

Aerosoles

The New Jersey-based women’s footwear company filed for bankruptcy last year and announced plans to move forward with a “significant reduction” of its retail locations. While it’s unclear how many of Aerosoles’ 88 locations will be affected, the chain said it plans to keep four flagship stores in New York and New Jersey operational, NJ.com reported.

American Apparel

A fashion brand known for its edgy offerings, American Apparel shuttered all of its 110 U.S. locations last year after filing for bankruptcy. The brand has since been acquired by Canada-based Gildan Activewear, which acquired its intellectual property in an $88 million deal.

BCBG

The Los Angeles-based brand listed liabilities of more than $500 million when it filed for bankruptcy last February. The chain closed 118 store locations nationwide last year, though more than 300 remained in operation under a company-wide reorganization.

Bebe

The women’s apparel chain closed all of its remaining 168 stores by last May, days after it said it was exploring “strategic alternatives for the company” amid plunging sales.

Bon-Ton Stores Inc.

The struggling department store filed for Chapter 11 bankruptcy, according to court papers filed in February. The chain, which operates 256 stores in 23 states, also announced it plans to close 42 stores in 2018 as part of a restructuring plan.

The Children’s Place

A fixture at shopping malls, the children’s clothing retail said it will close hundreds of store locations by 2020 as part of a shift toward digital commerce.

CVS

The pharmacy retailer said it would close 70 store locations in 2017 as part of a bid to cut costs and streamline its business. CVS still operates thousands of stores nationwide.

Foot Locker

The sports retailer told investors on March 1 that it would shutter about 110 stores in a push to focus on higher-performing store locations while also opening about 40 new stores. Foot Locker closed more than 140 stores globally last year.

"We continue to prune the fleet of under-productive stores and open a few select, high-profile stores," CFO Lauren Peters said in a call with investors.

Guess

Guess announced plans to close 60 of its struggling U.S. store locations in 2017 as part of a plan to refocus on international markets.

Gymboree

The kids clothing retailer confirmed last July that it would close 350  of its more than 1,200 store locations to streamline its business and achieve “greater financial flexibility,” according to CEO Daniel Griesemer.

Hhgregg

The electronics retailer said it would close all of its 220 stores and lay off thousands of employees when it failed to find a buyer after bankruptcy proceedings.

J. Crew

The preppy icon, which once thrived under the direction of retail guru Mickey Drexler, is thriving no more. During a November conference call, COO and CFO Mike Nicholson said the number of planned store closings will move to 50 up from the 20-30 originally announced. "We are committed to driving outsize growth with strong e-commerce capabilities complemented with a more appropriately sized real estate footprint” said Nicholson as reported by Fashionista.com.

J.C. Penney

The department store chain closed 138 stores last year while restructuring its business to meet shifting consumer tastes. The retailer also announced plans to open toy shops in all of its remaining brick-and-mortar locations.

The Limited

After a brutal holiday season in 2016, the clothing chain closed all 250 of its physical stores last January as part of a bid to focus on ecommerce. The closures reportedly resulted in the loss of about 4,000 jobs.

Macy’s

The major retailer said this month it would shutter an additional seven stores that were previously undisclosed and lay off some 5,000 workers as part of an ongoing effort to streamline its business and adjust to a difficult sales environment.

Macy's says it has now revealed 81 of the 100 store closures it first revealed in an August 2016 announcement.

Michael Kors

With same-store sales plunging, the upscale fashion retailer said it would close as many as 125 stores  to adapt to a difficult, promotional sales environment.

Payless

The discount shoe retailer filed for bankruptcy last April and has moved to close about 800 stores this year.

RadioShack

The once-prominent electronics outlet shut down more than 1,000 store locations earlier this year. The brand now operates just 70 stores nationwide, down from a peak of several thousand.

Rue21

The specialty teen clothing retailer confirmed last April that it would close up to 400 of its more than 1,100 locations and later filed for bankruptcy last May.

Sears/Kmart

Sears Holdings is one of the most prominent traditional retailers to suffer in a challenged sales environment. The brand shuttered 35 Kmart locations and eight Sears stores last July and has closed more than 300 locations last year amid pressure from ecommerce outlets, USA Today reported.

Toys R Us

Toys 'R' Us informed employees that it would sell or close all of its more than 700 U.S. stores -- a move that could cost as many as 33,000 Americans their jobs, according to the Wall Street Journal. The venerable toy outlet filed for bankruptcy last September amid mounting debt and pressure from wary suppliers. Sources within the company told Bloomberg earlier this month that a liquidation of Toys R Us's U.S. operations is seen as "increasingly likely" after weak holiday sales and a lack of interest from potential buyers. The company has already closed nearly 200 U.S. stores, according to reports.

Wet Seal

The teen fashion brand shuttered its 171 stores last year after previously filing for bankruptcy in 2015. Declining foot traffic at malls and pressure from competitors like Zara and H&M contributed to Wet Seal’s demise.

The closing of these stores are certainly a sign of the times type of thing. 

About 10-15 or so years ago in the US we saw the decline of major/high end department stores. Nobody wanted the 1-stop shop for all homegoods anymore. Why would they when they can go to a specialty store and get better products or just go online. Then in the last 10 years online shopping has become more prolific and accepted by pretty much everyone. As a result stores most stores have become even more specialized while more general goods have moved to online shopping or to discount department stores like Wal-Mart/Target. 

Now we are seeing the final steps towards a mostly online nature of purchasing. Chain stores are dieing as specialty shops are booming. Fewer and fewer people want to go to a chain store and get the same clothes/items that everyone else has. They want to be unique and the way to do this is a specialty/boutique shop. For everything else the direction is online, or once again, discount department stores.

Until you can try on clothing and test goods in a virtual environment I think the retail model in the US will continue on the trend of specialization. Another factor in this is also population density. The denser the population in an area, the fewer chain stores and restaurants you will see. So with growing population all around the country these retail chains become less and less relevant. Chain stores are being attacked at both ends and will slowly go by the wayside.