The U.S. retail landscape continues to be abysmal in 2017, with Macy’s Inc (NYSE:M), J C Penney Company Inc (NYSE:JCP), and Sears Holdings Corp’s (NASDAQ:SHLD) Sears and Kmart brands announcing sweeping closures.
Overall, on a year-to-date basis, the number of store closure announcements has increased 181% year over year, bringing the total number of stores to be closed to 5,763. With four months still left in the year, that number will most certainly rise.
It is expected that the total number of U.S. store closures in 2017 will reach 9,452, which would be a 53.3% increase over the 6,164 stores that closed in 2008. It would also represent a year-over-year increase of 361%. The 5,763 announced store closures in 2017 are already 61% ahead of the full-year forecast.
RadioShack Corp leads the retail apocalypse in 2017 with 1,000 announced store closures in 2017. Payless Inc has announced the second-most store closures with 700, followed by Rue21, Inc. (400), Ascena Retail Group Inc (NASDAQ:ASNA, 400), Sears and Kmart (358), Gymboree Corp (350), and L Brands Inc (NYSE:LB,250). Rounding out the top 10 are hhgregg, Inc. (220), GameStop Corp (NYSE:GME, 190), and bebe stores, inc. (NASDAQ:BEBE, 180).
This past week, discount retailer Perfumania Holdings, Inc. (NASDAQ:PERF) voluntarily filed for Chapter 11 bankruptcy protection and will close 64 of its 226 stores, or almost 30% of its locations. The company blamed weak mall traffic as a main reason for the store closures.
Unlike many retail brands that have filed for bankruptcy and shuttered their doors, Perfumania will stay open for business. The company expects the bankruptcy to allow it to renegotiate its leases and focus its attention on high-performing stores. Perfumania is also going to expand its e-commerce platform.
Perfumania’s Five Star Fragrance and Parlux subsidiaries are not included in the Chapter 11 filings.
Despite closing 103 stores over the past year, the company continues to lose money.
On June 19, it announced that first-quarter revenue for the period ended April 29 fell 6.8% year-over-year to $97.89 million. The company reported a first-quarter net loss of $9.65 million, or $0.62 per share, significantly worse than the loss recorded in the first quarter of 2016 of $6.40 million, or $0.41 per share.
The once-high-flying company currently trades as a penny stock, near $1.80 per share.
“Weekly Store Openings and Closures Tracker #22,” Fung Global Retail & Technology, September 1, 2017.
“Perfumania Holdings, Inc. Initiates Recapitalization,” Perfumania Holdings, Inc., August 26, 2017.
“Form 10-Q,” Securities and Exchange Commission, June 19, 2017.