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Deep Dive: US Retail—Store Closure and Management Change Tracker

Executive Summary

  • Among the major US retailers that we track, so far this year, eight have announced store closures and another six have announced management changes.
  • Store closure announcements are concentrated among the department stores and specialty retailers. Those facing bankruptcy proceedings—Wet Seal, American Apparel and The Limited—plan to close their entire store network. Macy’s plans to close 9% of its total store base, Sears 6%, Kmart 13%, BCBG 21%. JCPenney has plans to cut stores in the near future.
  • Management changes: Since the start of 2017, six major retailers have announced management changes, including Ralph Lauren, Tiffany & Co., Abercrombie & Fitch, Barneys, Givenchy and Coach.
  • The shared rationale behind the store closures include reconfiguring the store network due to the shift to online shopping, stemming losses from unprofitable stores and reallocating resources to focus areas. Management changes announced were justified by disappointing financial performance (Tiffany & Co.), conflicting views with founders (Ralph Lauren) and planned succession (Barneys).

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