RadioShack’s recent decision to close more than 1,000 stores is a prominent sign of the struggles facing retailers. RadioShack is not alone. In recent years, the Gap has closed 20% of its locations. Even Macy’s, which has forecasted strong earnings and is considered the most successful of the mid-market retailers, closed stores recently.
Brick-and-mortar stores have been suffering from slow economic activity for years, as well as from increased competition from online retailers, reports 24/7 Wall St. Weakened companies cannot afford the real estate and personnel costs that go along with supporting hundreds of unprofitable locations.
Among those that have shut the most number of stores are Barnes & Noble, J.C. Penney, RadioShack and Toys “R” Us. The hipster retailer Abercrombie & Fitch tops the list.
Mergers and acquisitions activities, competition from online stores, decision to shift to new markets, and strategic overhauling plans are some of the reasons why retail chains close stores. 24/7 Wall St. notes in particular that “the rise of Amazon.com, America’s largest e-commerce operation, has turned the entire retail industry on its head.”
To determine the retailers closing the most stores, 24/7 Wall St. reviewed large retailers that have publicly announced store closings for 2014, or are in the middle of a multi-year plan to trim locations. In addition, it reviewed company earnings and SEC filings.
Here are nine retailers closing the most stores: