Victoria’s Secret, Gap, JCPenney, And Foot Locker All Announcing Major Closures
Victoria’s Secret, Gap, JCPenney, and Foot Locker are American staple stores that you can find at just about every shopping center. However, all four have recently announced massive closures in the last 48 hours. All in all, the companies will reportedly be shutting down a massive total of 465 stores in the coming months. In addition, there could be many more closures to come, according to Fox Business.
Just yesterday, Gap announced that they would be shutting down around 230 of its stores after a less-than-adequate holiday sales season. Gap’s been struggling for two years, with the retailer’s total sales dropping by 7 percent. The company also recently announced that it will be cutting ties with its partner store, Old Navy. The goal behind this shift is so that Gap can shift its focus t0 reinventing its own brand and developing new marketing strategies.
Meanwhile, Foot Locker actually enjoyed a boost in sales during the holiday season and exceeded expectations. Nevertheless, it wasn’t quite good enough to secure the necessary investors. As a result, it will be shutting down 165 stores around the nation.
JCPenney had been just barely hanging on for years after going through many changes of direction and leadership and rebranding. While JCPenney will only be closing 18 of its whopping 850 stores in the near future, this could likely only the beginning of many more closures to come.
#VictoriasSecret to close 53 stores amid drop in sales, falling stock price https://t.co/fai9sw2RVJ
— ABC7 Eyewitness News (@ABC7) March 1, 2019
Bob Phibbs, CEO of New York-based consultancy the Retail Doctor, believes that JCPenney is nearing the end of the road. If the company doesn’t act fast to set itself apart from other main competitors, it could be dropping off the map for good.
“It is mind-boggling that JC Penney still thinks they have time when the clock has run out and there’s no real plan. Closing 18 stores is barely a drop in the bucket of JC Penney’s more than 850 stores. If this was a big, bold effort to reinvigorate the brand, they would have announced they were closing hundreds of stores and investing in an outstanding experience at their other locations.”
Victoria’s Secret was the most surprising announcement of the bunch for many, as the retailer hasn’t been as vocal in the media about its steady decline of sales, according to Business Insider. Some feel that the nation has had enough of its usual advertisements, particularly in the wake of the #MeToo Movement. It will be closing down 53 of its stores this year. Its controversial fashion show last year received some of the worst ratings of all time.
