Seven Big-Box Stores Closing Multiple Locations Nationwide And You Likely Shop At All Of Them
Party City, Bed, Bath, & Beyond, Tuesday Morning, Gap, Macy’s, JC Penny, and Amazon Go will all experience closures.
With many retail stores struggling since the COVID-19 pandemic, some of America’s favorite big-box store closings are happening. As the harsh economic times continue, hundreds of small and multi-national stores have closed for good. Many companies are reconsidering physical stores and opting for warehouses and internet-based retail shops instead.
One of the retail stores that is in financial trouble, and is among those who will suffer big-box store closings, is Gap. The Gap company, which owns several retail brands, including Old Navy and Banana Republic, has decided to close fifty stores nationwide as they have experienced a reduced number of sales for a prolonged period. For its most recent quarter, it reported a significant loss of over $200 million.
Along with Gap, Tuesday Morning has also been struggling. It is trying to focus on its core markets and profitable stores to improve operations and regain profits. They have announced the closures of 263 stores and are set to auction off 250 retail store leases. They are remaining in places where their most loyal customers are and leaving retail areas that have been proven to be unprofitable.
Their struggle to correct stock levels over the pandemic has resulted in a dwindling number of customers. Stores that have been underperforming for a long time have been closed to regain some profits. These are all circumstances that lead to big-box store closings.
Party City is another retail brand that has succumbed to the big box store closure trend. It declared bankruptcy two months ago and plans to shut the doors of at least twenty stores. It is closing ten stores and auctioning off twelve leases like Tuesday Morning.
As many social gatherings were canceled during the pandemic, Party City’s profits rapidly declined. Along with inflation, it was just too hard for the retail store to recover. Like many others, the combination of a global pandemic and soaring inflation proved to be too much.
One that will upset many people is the big box store closure of 87 Bed, Bath, and Beyond stores this year. They have already closed many stores, so this new announcement is a blow to its loyal customers. They have also faced dwindling sales and the pressure of finding their niche in the e-commerce world.
The iconic store, Macy’s, has also announced that they will be closing over 120 stores this year, in which over two thousand employees will lose their jobs. Also, JC Penney, which announced bankruptcy three years ago, has announced an even bigger store closure. Over 800 of their branches will close as they have racked up an eye-watering $4.5 billion in debt over the last thirteen years.
The grocery store, Amazon Go, is the last big box store closures customers can expect to happen in the coming months. They have released that six of their stores will close from April this year. Two of its Seattle stores have already closed this year.
Amazon continuously reviews, as all companies should, the progress of each of its Amazon Go branches. The six branches soon closing are not profitable enough to move forward. They have also laid off over 18,000 employees this year, so it seems they are in a period of optimization.
As the economy continues to increase the price of everything, retailers will continue to fall short of profit lines. This prolonged period of inflation is forcing retailers to close their doors as consumers do not have the money to continue propping up the economy. So big box store closures will continue to happen.