RETAIL commentators feared an apocalyptic scenario could hit the sector during the pandemic.
Experts were concerned that the Covid-19 crisis could produce widespread closures and huge job losses.
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Iconic chains such as Lord & Taylor – once America’s oldest department store – and Stein Mart were among chains that went to the wall amid the crippling impact of the pandemic.
And, bosses at the discount chain Century 21 filed for bankruptcy in September 2020 and shut down its final 13 stores, CNBC reported.
Stifel managing director Michael Kollender told Yahoo Finance in 2020: “We will see some major chains go away and not come back. COVID-19 will put them over the ledge. We are in a retail tsunami.”
Years later, retail experts at Husch Blackwell have warned that a similar apocalyptic scenario could happen in the future.
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Federal support such as the Paycheck Protection Program, which was designed to keep workers in jobs during the pandemic, has now dried up.
More than 300 stores across the US are facing closure this year.
BED BATH & BEYOND
Bed Bath & Beyond is just one company that's facing financial struggles.
Chiefs revealed in September last year that they planned to close 150 stores.
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More than 50 closures had already been announced, but another 62 were added to their list on Tuesday.
Bosses have not confirmed the exact date when the stores will shut.
But, it's likely the stores will close by the end of the fourth quarter of the 2022 financial year.
This usually falls at the end of February, according to Insider.
Outlets are closing across several states including South Carolina, Wisconsin, Kentucky, Florida, New York, New Jersey, and Pennsylvania.
According to Axios, 30 states across America will each have at least one Bed Bath & Beyond store close.
The WSJ also reported that Bed, Bath & Beyond could file for bankruptcy within weeks.
But, a spokesperson for the chain said: “No determinations have been made at this time.”
Officials are also exploring alternative options such as selling assets and restructuring in a bid to avoid bankruptcy.
President Sue Gove said: “As always, our employees and partners are our top priorities.
“Our unwavering engagement with our supplier community will continue as we work together to realize our full potential.”
“We are a team focused on the future, and I am grateful for the dedication and hard work of those who are powering our path forward.
SEARS
Bed Bath & Beyond is not the only chain facing financial problems as Sears is closing the last of its 115 stores, affecting shoppers coast to coast.
A dozen stores in Arkansas will close, while eight outlets will be shut in Texas.
And, six stores across California will be closing their doors for good.
Dave Dittbrender, the owner of a Sears outlet in Superior, Wisconsin, told local media that he doesn’t expect the sale to last beyond January.
He said the company has suffered in recent years amid the Covid pandemic, declining sales, and rising costs.
Dittbrender told the Superior Telegram: “COVID-19 was tough. You had to stick money into it just to stay open so the debt load went up a little bit."
Hundreds of stores have closed as there were 700 Sears outlets just three years ago.
MACY’S
While Macy’s is not going out of business, liquidation sales will be held in at least four shops.
Outlets in Los Angeles and Fort Collins, Colorado will be shutting down, as will stores in Kaneohe Hawaii, and Gaithersburg, Maryland.
The sales will last between eight and 12 weeks, and the stores are due to close by the start of May at the earliest.
The upcoming closures come as bosses want to “reoptimize and reposition” their fleet of outlets.
A spokesperson told USA Today last year: “Stores remain an integral part of our omnichannel retail system.”
The store closures were announced before the Covid crisis and CEO Jeff Gennette warned in 2020 that they were “painful but necessary”.
The retailer announced that 125 of its stores would close over a three-year period.
AMERICAN EAGLE OUTFITTERS
And, the clothing chain American Eagle Outfitters will be closing at least three of its stores, reports say.
Shops in St Joseph, Missouri, and Forsyth, Illinois will close their doors on January 15.
It’s reported that an outlet in Lakewood, New York will also shut but the date of the closure hasn’t been revealed.
There are 984 American Eagle Outfitters stores across the US, according to its website.
Several retailers have taken the decision to close some of their stores.
The U.S. Sun reported how at least eight JoAnn stores will be closing down.
A store in Batavia, New York, and another in Marion, Ohio, will close their doors on January 15.
An outlet in Keene, New Hampshire, will shut its doors for good on January 22, as will a store in Bridgeport, West Virginia.
But, one closing-down store in Cockeysville, Maryland is set to be replaced by the supermarket giant Aldi.
The cosmetics retailer Morphe is closing all of its 18 stores across the country as bosses transition to e-commerce and wholesale.
Morphe tweeted on January 5: "We have made the difficult decision to close all Morphe stores in the U.S. We are forever grateful to our store teams for their passion, talent, and dedication over the years."
But, shoppers may be able to grab themselves a bargain as some locations have sales where the prices of items have been slashed by up to 80 percent.
And we reported how at least four Banana Republic and two Marshalls outlets are set to shut their doors this month.
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