Lord & Taylor LLC filed a Worker Adjustment and Retraining Notification (WARN) report with the Maryland Department of Labor, Licensing, and Regulation, affecting 141 employees. Hudson’s Bay Co (TSE:HBC), which owns the luxury Lord & Taylor brand, said the Annapolis, Maryland store will close between April 15 and 28.
“Through the regular course of business we continually evaluate opportunistic transactions with our real estate assets and, from time to time, may determine it necessary for the overall business to close a store,” Hudson’s Bay said in a statement. “These decisions are never easy, but they are prudent for the company, strategically and financially…”
Founded in 1826, Lord & Taylor is the oldest luxury department store in the country, with 50 flagship locations across the U.S. Lord & Taylor is one of five anchor stores in the 1.4-million-square-foot Annapolis Mall Road. The other four anchors include Nordstrom, Inc. (NYSE:JWN), Macy’s Inc (NYSE:M), Sears Holdings Corp (NASDAQ:SHLD), and J C Penney Company Inc (NYSE:JCP).
Save for Nordstrom, the other three retailers are facing challenges and illustrate the financial risks traditional brick-and-mortar brands face in a changing industry that is shifting more and more online.
Just this week, Belk, Inc. announced it is closing two department stores next year, including one in West Virginia and the other in Georgia. The Belk layoffs will result in the loss of 183 full- and part-time jobs. Further, in July, Belk said it will close its Brookwood Village location, just outside Birmingham, Alabama, in January 2018.
Also this week, Bon-Ton Stores Inc (OTC:BONT) announced it is shuttering 15% of its stores in 2018 as it looks to turn around is debt-laden business. The company has not yet provided a list of store closures, nor the number of employees that will be laid off as a result. In October, Bon-Ton announced it will also shutter its store in South Burlington, Vermont in January 2018. The closure will impact 42 employees working there.
If that number is used as a baseline, the closing of at least 40 stores represents 1,680 job losses.
These closures are in addition to the massive store closures happening at Sears and Kmart (358), J C Penney (138), and Macy’s (100).
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“Lord & Taylor Closing Annapolis Store,” Baltimore Business Journal, November 16, 2017.
“2002 Annapolis Mall Road,” Westfield Corp, last accessed November 17, 2017.
“Belk to shutter two stores in 2018,” Charlotte Business Journal, November 14, 2017.
“Belk’s Brookwood Village location is set to close in 2018,” ABC 33/40, July 11, 2017.
“Bon-Ton closing at least 40 stores next year as sales slump,” LehighValleyLive.com, November 16, 2017.
“The Bon-Ton Stores, Inc. Announces Closing of Its Bon-Ton Store in South Burlington, Vermont,” Bon-Ton Stores Inc, October 18, 2017.
“Weekly Store Openings and Closures Tracker #33: Vitamin World to Close 124 Stores; Fashion to Figure Files for Bankruptcy,” Fung Global Retail & Tech, November 17, 2017.