Bankruptcies Push Up Store Closures
Another day and one more retail store data point.
There are now 5,185 announced store closures, versus 4,810 store openings in the U.S., according to data from Coresight Research. The tally last month for store closures versus store openings were 4,548 and 4,426, respectively.
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Coresight’s data analyst Aaron Mark Dsouza found that some of the store closings include those previously disclosed, such as the 55 Macy’s stores—four just closed—that are slated to shutter by the end of the current fiscal year. Specialty apparel chain The Buckle opened two locations in the second quarter, but also shut down two stores. Home furnishings retailer Williams-Sonoma opened six stores in the second quarter, and closed two.
J.C. Penney closed one store last month in Eden Prairie, Minn., leaving the mass merchant with a total store count of 659.
But it’s still the Chapter 11 bankruptcy filings—consumer companies are leading corporate bankruptcies—that have contributed the most to store closings this year. More recent names on the Chapter 11 front include Conn’s, Rue 21, and Bob’s Stores. And then there’s bankrupt Eastern Mountain Sports, which will be acquired by U.K. retailer Mountain Warehouse in a $10 million deal. While the deal includes keeping the seven core, profitable stores open, that also means about 17 locations are going away. Just today, Big Lots entered bankruptcy court protection as part of a sale process that will see 315 stores shutter.
While retailers are reviewing their store networks all year long, many of the decisions on which doors should close often come close to the end of the fiscal year, with the retail fiscal year ending usually at the end of January or early February. That’s because retailers count holiday and post-holiday sales in hopes of making their fourth quarter and full-year target goals.
Still, other retailers are opening stores.
Academy Sports + Outdoors plans to open nine new stores this fall. The stores are located in Beckley, West Vir.; Kingsport, Tenn.; Bloomington, Ind.; Selma, North Carolina; Ft. Myers, Fla.; Birmingham, Ala.; Springfield, Ohio; Bradenton, Fla., and Bulverde, Tex. The outdoor retailer opened three earlier this year, bringing the total to 12 once these locations are opened. The retailer has plans to open a total of 15 to 17 new stores in fiscal year 2024.
“Academy Sports + Outdoors is excited to continue our company growth with nine new stores this fall, making shopping with us more convenient than ever in existing markets and providing new customers with the best localized assortment of sports apparel, footwear, equipment and outdoor gear,” the retailer’s senior vice president of retail operations Eric Friederich said.