What Is The Future Of The Store? Many Clothing And Department Stores In The United States Will Be Closed.

The number of physical shops closed so far in 2019 is astonishing - over 9000, far higher than the 5800 closed in 2018, and the coming 2020 is still uncertain.

If you like the shopping experience of using fingertips to touch fabrics and try perfume samples, you'd better hurry up, because more and more American chain stores will disappear in 2020, and some mainstream retailers are reconsidering the strategy of setting up a physical store.

According to Coresight Research, a consultancy, the number of entities that have been closed so far in 2019 is astonishing - over 9000, far higher than the 5800 closed in 2018, and the coming 2020 may be a worse year.

Now let's take a simple look at the entity chain brand that has developed more stores in 2020:

1. American clothing brand Chico's -

Number of stores planned for 2020: up to 250

Chico's was founded in 1983 by a couple, specializing in the production of exquisite women's wear, accessories and underwear. It has developed rapidly to more than 1400 branches in the United States and Canada. But now, the chain brand is changing the way traditional stores operate - and by the beginning of 2022, 250 American stores will be closed.

At the same time, the Chico 's also started working with Amazon, ShopRunner and QVC to meet the changing needs and shopping habits of 8 million customers.

2. clothing brand Gap --

Number of stores planned for 2020: up to 230

Gap's chain stores are shrinking. After the unpleasant 2018 holiday season (when Gap's sales fell by 5%), the company made a decision to close about half of its stores by 2020. We do not yet know how many stores have been closed.

Not only that, the size of other Gap stores will also shrink. Robert Fisher, the chairman of the company, said the closure of these stores would inject new vitality into the 50 year old brand.

But perhaps the most shocking progress is the news that Gap plans to split independently with its Old Navy. Gap announces that Old Navy will withdraw from the Chinese market starting from 2020 after its independent spin off, and will focus its efforts on the North American market in the future to maximize its efficiency. It is expected that the split transaction will be completed by the end of next year.

3. office service company Office Depot -

Number of stores planned for 2020: up to 90

You may have to drive farther away at lunchtime to buy ink cartridges and envelopes. In view of the huge potential of the B2B market, Office Depot has announced that it will close 90 stores in 2021, the latest move after closing 55 stores last year. The office supplies company also owns OfficeMax brand, and some stores of the brand also face closure.

At the peak of 2006, the retailer's share price almost reached $44, but in the third quarter of 2019 it was only $2.5.

Joe Lower, chief executive of the company, once told investors: "within three years, sales of the company's stores may account for only 20% of total sales."

4. household goods shopping brand Bed Bath & Beyond -

Number of stores planned for 2020: up to 60

The stores of Bed Bath & Beyond are mostly large, some showrooms occupy more than 80 thousand square feet, and about 300 thousand exhibits are displayed from the ground to the ceiling. By the end of August 2019, the company had more than 1500 stores in the United States and Canada, including some 1000 Bed Bath & Beyond stores.

But the retailer plans to close 40 of its stores by March 2020, and the other 20 BB&B chain stores will also be closed, including buybuy BABY and Cost Plus World Market stores.

Executives say their goal is to find a better balance between physical businesses and digital businesses.

5. women's wear and boutique retailer Christopher & Banks -

Number of stores planned for 2020: up to 40

In 1956, Jill Braun (Gil Braun) pioneered the Braun "s Fashions" of Christopher & Banks in Minneapolis. By 2000, the latter had developed into two brands of Christopher & Banks and CJ Banks, and the number of chain stores exceeded 500.

But in the first quarter of 2018, Christopher & Banks lost $8 million 800 thousand, but its online sales increased by nearly 11%. As a result, the company is reducing the number of stores and transferring more resources to e-commerce business.

The company's plan is to close 30 to 40 stores by the end of 2020. Meanwhile, the retailer has been delisted by the NYSE because of its low share price.

6. chain drugstore CVS -

Number of stores planned for 2020: up to 22

CVS, the largest chain drugstore in the US, shut down up to 24 pharmacies in 2020, about half of the number of stores closed in 2019, and the number of existing CVS stores is about 9900.

Today, the chain drugstore operator is focusing on providing MinuteClinics services, which provide basic medical services to shop guests.

Eva Boratto, the chief financial officer of the company, hopes that closing the poor performing stores will produce "better long-term performance".

7. luxury department store Lord & Taylor -

Number of stores planned for 2020: 2

Lord & Taylor is the oldest luxury department store in the United States. It was founded in 1826. It is located in the flagship store between 38 street and 39 street in Fifth Avenue, Manhattan, New York. It was opened in 1914 and is one of the famous landmark buildings in New York.

But the Lord & Taylor parent company, Canadian luxury department store operator Hudson "s Bay Co" (hereinafter referred to as HBC) has officially announced the sale of Lord & Taylor to the United States monthly subscription to the fashionable rental website Le Tote. Meanwhile, two stores will be closed in early 2020.

The company said that the main reason for closing the store was economic considerations, and said it would work closely to help laid-off workers through the transition period.

8. discount chain store Kmart -

Number of stores planned for 2020: 2

Kmart was founded in 1962. In 1994, the discount chain store had nearly 2500 stores in the world, but it declared bankruptcy in 2002 and 2018 two times. In recent years, Kmart has been in a "steady shop" state, and in 2019 alone, dozens of Kmart stores have been closed.

According to a statement issued by the company in August 2019, "the possibility of closing more stores in the near future" has not been ruled out, but the company representatives have been very tight lipped about which stores should be closed.

Kmart wrote in a statement: "our goal is still to make the company return to profitability and to retain as many jobs as possible in the community we serve."

9. Sears department store -

Number of stores planned for 2020: 1

Sears's department store, which has a 130 year history, is slowly dying out. The iconic chain store, once the largest retailer in the United States, played a key role in the rise of shopping centers. Its innovative mail order catalogue has always changed the way people shop.

The company got out of bankruptcy in 2019, but it did not seem to be stronger. In the months since then, Sears has seen another round of shop closures. By the end of 2019, a total of ten stores will be closed.

Another report pointed out that Sears is exploring potential asset sales, including its DieHard brand.

10. Messi department store (Macy's) -

Number of stores planned for 2020: 1

A landmark eight storefront store in downtown Seattle will be closed in February 2020, which is the latest example of Messi's dilemma. Last year, the shop had been reduced to several floors, and all the other floors in the Messi department store were rented to the Amazon Co as offices.

So far, this is the only store that Messi has decided to close in 2020. But it is almost certain that more stores will appear in this list in the future, because the company usually releases a similar list after the end of the shopping holiday.

Meanwhile, Messi's Department reported third quarter results earlier this month, but it showed a "no miracle" Messi. Data show that the net sales volume of Messi's department store in the third quarter dropped 4.3% to 5 billion 170 million US dollars compared with the same period last year. When Ji Jing's profit dropped 97% to 2 million dollars, the same store sales declined for the first time in two years (3%).

Messi Jeff Ganett, chairman and chief executive of department store, complained at the earnings conference that "such performance should be attributed to the slow future of the cold weather. The continued weakening of the international tourism industry and the shortage of passenger traffic in the two or three line shopping center are also one of the factors that affect sales volume" in Jeff Gennette.