In today’s economic climate, there is one factor that all major retailers have in common — be it in the supermarket sector or the more specialized areas like furniture or apparel — brick and mortar sales are still struggling to recover from the impacts of the COVID-19 lockdown and an overwhelming preference for online shopping.
It has now been several years since the lockdown ended and yet, retailers have not been able to truly bounce back from its effects. If you look up a retailer online, you are more than likely to see at least one article about store closures or downsizing and it appears that this “trend” will persist on throughout the year.
Major retailers closing in April
Restructuring of business models has now become a necessity for companies who wish to stay afloat in the rapidly evolving market of today, with many companies opting for a predominantly online presence. However, restructuring is certainly easier said than done and many companies are having to go through a trial and error period of experimentation as they search for a way to increase profitability.
According to research conducted by real estate services firm Green Street Advisors, “data has long shown that malls are declining in prevalence, with almost 25 percent of America’s largest shopping centers expected to close by 2027.”
Store closure announcements have been coming out in bulk over the past year and for the month of April this year, the stores that have announced some closures include, Kohl’s, Walgreens, Dollar General, and JCPenney.
Kohl’s
Twenty-seven Kohl’s locations will be shutting its doors this April due to underperformance, however loyalists of the department store giant need not fear too much as the retailer will still have approximately 1,000 other locations still in operation.
“We always take these decisions very seriously,” Tom Kingsbury, Kohl’s former CEO, shared in January. “As we continue to build on our long-term growth strategy, it is important that we also take difficult but necessary actions to support the health and future of our business for our customers and our teams.”
Walgreens
Drugstore giant, Walgreens will also be enacting mass closures of its stores around the country as sales continue to decline. Three locations in Colorado Springs will be closed this month and will form part of a much larger closure effort. The pharmacy plans to close a total of around 500 stores as the year progresses.
It had been previously disclosed by the company that “roughly 25 percent of its 8,700 stores in the United States do not make a profit.” As such, 1,200 Walgreens locations were slated for closure to help curb losses and 500 of these closures have been scheduled for the current fiscal year.
The company also shared that patient’s prescriptions will automatically be transferred from the closed stores to to alternate Walgreens locations.
“Our retail pharmacy business is central to our go-forward business strategy. However, increased regulatory and reimbursement pressures are weighing on our ability to cover the costs associated with rent, staffing, and supply needs. It is never an easy decision to close a store,” Brigid Sweeney, Walgreen’s senior manager of media relations shared.
Dollar General
It appears that even dollar stores are not immune to growing inflation rates, and more recently, tariff hikes and as such Dollar General will be closing the doors of hundreds of its locations due to a continuous decline in sales.
JCPenney
The longstanding department store chain known for its wide selection of apparel, jewelry, and other similar items, will also be closing the doors of several locations as it attempts to cut down on losses.
The JCPenney locations slated for closure are as follows:
- The Shops at Tanforan in San Bruno, California
- The Shops At Northfield in Denver, Colorado
- Pine Ridge Mall in Pocatello, Idaho
- West Ridge Mall in Topeka, Kansas
- Westfield Annapolis Mall in Annapolis, Maryland
- Fox Run Mall in Newington, New Hampshire
- Asheville Mall in Asheville, North Carolina
- Charleston Town Center in Charleston, West Virginia
A spokesperson for JCPenney explained that, “While we do not have plans to significantly reduce our store count, we expect a handful of JCPenney stores to close by mid-year… The decision to close a store is never an easy one, but isolated closures do happen from time to time due to expiring lease agreements, market changes or other factors.”