Traditional brick and mortar stores have taken a beating from the contemporary online business competitors. For old school business models that failed to stay in touch with the times, this is a blow to their loyal customers. For online stores that continue to boom, these traditional stores haven’t posed a threat in quite a while.
Payless ShoeSource shoes started off as a cheap shoe store and enjoyed some popularity. This popularity has declined, though, as the quality provided was not up to expectations. More than 2,500 stores will be closed this year. Clearance sales are underway to save what is possible between now and May 2020, when the last of these closures will be liquidated.
This children’s clothing traditional store – the Gymboree Group Inc. has finally filed its papers for a Chapter 11 bankruptcy action. The group confirmed that over 800 of its Gymboree and Crazy 8 stores would close down across North America. The Group also filed for bankruptcy during 2017 and has not succeeded with turnaround strategies.
This company has stated that its operations will close in totality. More than 500 stores across the country will finally close their doors in April of this year. All transactions have ended, barring final liquidation sales where some products remain available online at various locations.
Shopko is another familiar brand in the market that has filed for bankruptcy. Plans to sell merchandise failed when a buyer couldn’t be found, so liquidation sales of merchandise continue in the interim. The company states that all its stores will now be closed, with June 2020 being the final closure date.
Gap Inc. plans to shut down over 200 stores by the end of 2022. This figure represents 50 percent of its total stores across the globe. Plans to rejuvenate sister company, Old Navy, are meanwhile underway to boost company profits. Old Navy has consistently outperformed other brand sales. Old brands like Hill City, Intermix, and Athleta will continue under their new name – NewCo.