You have probably heard about retail giant Macy’s most recent announcement about closing stores and laying off employees, and potentially leaving malls in the dust as well. Many shoppers have changed what they are looking for in retail, making it hard for many stores to remain open. Many people are searching for good deals or purchasing comfortable athletic gear. Stores, such as Macy’s and Nordstrom, have struggled to keep up with the trends. Now, many of them of having trouble keeping doors open through 2016.
Last week, Macy’s announced 36 store closures and a significant amount of layoffs. The company also announced that holiday sales fell an astounding 4.7 percent, blaming the unseasonably warm weather for the lack of sales in winter gear. In addition to the holiday sales fail, the company has also seen nearly a 50 percent decline in stock during the last 12 months. The retail giant, which relies on the sales of purses and clothing, has not seen a lot of newness in apparel. Now, it is facing competition from newer retailers like H&M and TJ Maxx. However, the company has formed a restructuring plan and is likely to weather the storm.
As far as department stores go, Nordstrom is one of the strongest, but the company is still facing the same problems as Macy’s. This includes the competition from the newer companies as well as falling sales. Since last year, Nordstrom stock has fallen 42 percent. Nordstrom has possibly had a harder time with sales because, unlike Macy’s, it does not offer any big sales. This makes it difficult to compete against many other companies. Its discount retail store, Nordstrom Rack, has not seen much traffic either because of its lack of merchandise. It only sells clothing, which is a weak item on the market currently.
Aeropostale shares have fallen to under $1 per share, which is troubling for the company. They have struggled with the falling clothing market as well as other hip retail stores popping up all over the place. It seems not many teens, or anyone else, are concerned with having the Aeropostale name on their clothing. During the third quarter, the company suffered a 20 percent decline in sales.
Sears has been squeezed by many other companies. Places like Lowe’s and Home Depot are now selling appliances, which Sears used to lead the market in. In addition, its apparel sales have been snuffed out by places like Target. Overall, Sears’ stores are just outdated. Many people don’t want to shop in Sears because they’ve not put any work into their displays or the look of the stores. In the new year, Sears is focusing on restoring profitability to the company through its stores. However, it is not yet foreseeable whether the company will achieve that goal or not.
HH Gregg is a regional retail store, not all states have one. However, the company has seen a significant fall in sales due to a number of factors. Rural areas in particular have seen a significant decrease in sales. The company has also been hurt in electronic sales by Amazon and Best Buy. Sales for various products have fallen between 11 and 35 percent, and since last year, sales have fallen 64 percent.
The retail world is changing, and it seems some of the biggest and most well-known companies are being hit hard. Some will close stores, others will enact aggressive plans to push through. It is likely that we may see these stores slowly fade out over time.