Though many of the below-listed companies are permanently shuttering stores for reasons publicly stated as “strategic,” underperforming locations are only part of the story.
This article is based on corporate postings and accredited media reports. Linked information within this article is attributed to the following outlets: Investors.RiteAid.com, Fortune.com and Forbes.com.
I spend several hours weekly writing about the retail industry for NewsBreak. At times, I will report on the truth behind widespread internet-spawned rumors of business closures. At other times, I will explore — with substantial attributions from expert analysts — the truth behind individual location shutterings.
For example, Rite Aid has experienced a stellar fiscal 2022 according to Investors.RiteAid.com, exhibiting increased numbers in financial metrics across-the-board. However, according to a June, 2022 article from Fortune.com, “Rite Aid Managed to Lose More Than $600 million During the Pandemic While its Pharmacy Rivals Boomed. Inside the CEO’s High-Stakes Turnaround Plan,” the company’s business challenges have been far deeper than previously reported.
From the article: Rite Aid’s financial difficulties are far deeper and more perilous than simply looking puny compared with its competitors. The company is also dragging around $3 billion in debt—one reason that an April Deutsche Bankresearch note warned that the company was in danger of hitting a “dramatic negative inflection point” where it no longer has the funds to invest in the business. What happens if it reaches that point? A downward spiral that could potentially end in bankruptcy, taking shares from their current $6 or so all the way down to zero.
Such is typically the case with such closings, as behind-the-scenes issues that receive little public note are often drivers of key business decisions. For the record, Rite Aid is in the midst of closing 145 locations within the current calendar year.
Let us explore further regarding other retail companies.
Retail Chain Closures, 2022
Per some of my previous stories on NewsBreak (article links are under company name):
- Walmart continues to close individual underperforming locations, primarily to focus on their e-Commerce division rather than bringing up lower-tier centers.
- Individual Dollar General locations are closing, presently in large part due to safety issues.
- American Eagle Outfitters announced strategic closings of up to 250 stores over a three-year period beginning in 2021.
- Sears Hometown announced the closure of 100 locations over 30 states.
- CVS Pharmacy is in the midst of closing 900 locations over three years.
- Macy’s announced 100-plus store closures over three years.
- Ross Dress For Less is in the midst of an expansion, though individual locations are closing.
- Bloomingdales is closing 125 locations in the coming months.
- DSW, in 2021, announced 65 closures over the “next four years.”
- Kohl’s had entered into negotiations for a company sale, which failed. Analysts are now anticipating closures.
There are other retailers in the midst of closing throughout the duration of the current calendar year, on which I have also reported, and I will continue to share any new reports.
Numbers may presently appear unstable for some of the above companies, as the retail business is often volatile. In such industries, though, changes tend to happen quickly and frequently with little or no notice.
In the event of further related reportage I will update my readers here, on NewsBreak.
Thank you for reading.