June is just a microcosm of broader closures affecting the retail industry. Coresight Research said as many as 25,000 retail stores in the United States are expected to permanently close this year as consumer demand for discretionary items stalls and more people shift to online shopping.
The firm anticipates closures will only get worse this year and set a new annual record this year. Last year, Corelight recorded a record 9,302 closures.
Chuck E. Cheese
The party’s over for Chuck at about 45 locations. Its parent company, CEC Entertainment, filed for bankruptcy, resulting in the closures at some of its entertainment centers.
CEC, which also owns Peter Piper Pizza, said it will use Chapter 11 protection to “achieve a comprehensive balance sheet restructuring that supports its re-opening and longer-term strategic plans.” It partially blamed Covid-19 for the bankruptcy, but it’s also dealing with declining profits prior to the pandemic.
The company will have around 500 company-owned locations left following the closures.
The 85-year-old vitamin and dietary supplement retailer filed for bankruptcy this week, which is resulting in the closure as many as 1,200 stores in the United States.
GNC was already in trouble, but Covid-19 compounded its problems. It blamed stay-at-home orders for preventing it from accomplishing its refinancing plans because of the abrupt “dramatic negative impact” on its business.
The debt-burdened retailer will continue operating, but it will become smaller. GNC plans to close up to 20% of its 5,800 retail stores, which amounts to as many as 1,200 locations across the United States this year. GNC also sells its products in an additional 1,200 Rite Aid (RAD) stores.
Gap’s male athleisure brand is being shut down after barely two years in operation. Although it operated predominately online, Hill City clothes were sold in some of the company’s Athleta stores.
Hill City was more expensive than the men’s workout gear already sold in Gap stores. The brand announced on June 4 on Instagram that it will be “winding down operations over the course of this year.”
Gap said it will “leverage Hill City styles, fits, and innovation into future men’s lines at its other brands, starting with Banana Republic.”
The bankrupt department stores announced an additional closure of 13 stores in June in addition to the shuttering of 250 locations it announced in May following its bankruptcy filing.
JCPenney said it expects 200 of those closures will happen by the end of this summer, with the remaining 50 closing by next summer. Most of the 13 stores in the latest round will start liquidation sales on or around July 3.
The pandemic was the final blow to a 118-year-old store, which was struggling to overcome a decade of bad decisions, executive instability and damaging market trends.
The Spanish owner of Zara and other affordable fashion brands said on June 10 it was closing as many 1,200 stores over the next two years.
Inditex said the closures were part of its broader post-pandemic plans that includes the $3 billion investment over the next three years to develop a “fully integrated store and online model.”
Several Inditex brands’ stores will face the ax, including Zara, Bershka, Massimo Dutti and Pull&Bear with closures mostly affecting its locations in Europe and Asia. Some stores in the Americas will also be closed.
The parent company’s name might not be instantly recognizable, but the brands its operates are. The owner of Kay Jewelers, Zales and Piercing Pagoda announced on June 9 that at least 150 stores of its various brands won’t reopen after being temporarily closed because of the pandemic.
Signet (SIG) also said that it will close “at least an additional 150 stores” by the end of the month. The Bermuda-based company has around 3,200 global locations. The closures will amount to more than $100 million in savings.
— CNN Business’ Chris Isidore contributed to this report.