Store closings: retailers will close thousands of locations due to coronavirus

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June is just a microcosm of wider closings affecting the retail industry. Coresight Research said up to 25,000 retail stores in the United States are expected to close permanently this year as consumer demand for discretionary items slows and more and more people are turning to online shopping.

The company predicts the closings will only get worse this year and has set a new annual record this year. Corelight had a record 9,302 closings last year.

Chuck E. Cheese

The party is over for Chuck at around 45 locations. Its parent company, CEC Entertainment, filed for bankruptcy, which led to the closure of some of its entertainment centers.

The CEC, which also owns Peter Piper Pizza, said it would use Chapter 11 protection to “achieve a complete balance sheet restructuring that supports its strategic and longer-term reopening plans.” He partially blamed Covid-19 for bankruptcy, but it was also a drop in profits before the pandemic.

The company will have approximately 500 company-owned sites after the closings.

CNG

The 85-year-old retailer of vitamins and supplements filed for bankruptcy this week, resulting in the closure of 1,200 stores in the United States.

GNC was already in trouble, but Covid-19 made matters worse. He criticized the stay-at-home orders for preventing him from carrying out his refinancing plans due to the brutal “dramatic negative impact” on his business.

The indebted retailer will continue to operate, but it will get smaller. GNC plans to close up to 20% of its 5,800 retail stores, representing up to 1,200 locations in the United States this year. GNC also sells its products in 1,200 others Rite Aid (RAD) stores.

Hill city

Gap’s men’s athletic brand is closed after just two years of operation. Although they work primarily online, Hill City clothing has been sold in some of the company’s Athleta stores.

Hill City was more expensive than men’s training equipment already sold at Gap stores. The brand announced on June 4 on Instagram that it will “cease operations during this year”.

Gap said he “will harness Hill City’s styles, cuts and innovation in future men’s lines from his other brands, starting with Banana Republic.”

JCPenney

The bankrupt department stores announced the additional closure of 13 stores in June, in addition to the shuttering of 250 locations announced in May following its bankruptcy.

JCPenney said it expects 200 of the closings to take place by the end of this summer, with the remaining 50 closing by next summer. Most of the last 13 stores will start their liquidation sales on or around July 3.

The pandemic was the latest blow to a 118-year-old store struggling to overcome a decade of bad decisions, executive instability and damaging market trends.

Inditex

The Spanish owner of Zara and other affordable fashion brands said on June 10 that he would close as many as 1,200 stores in the next two years.

Inditex said the closings were part of its broader post-pandemic plans which include investing $ 3 billion over the next three years to develop a “fully integrated online store and model.”

Several stores of Inditex brands will face the ax, including Zara, Bershka, Massimo Dutti and Pull & Bear, the closings mainly affecting its sites in Europe and Asia. Some stores in the Americas will also be closed.

Bookmark Jewelers

The name of the parent company may not be immediately recognizable, but the brands it operates are. The owner of Kay Jewelers, Zales and Piercing Pagoda announced on June 9 that at least 150 stores of his different brands would not reopen after being temporarily closed due to the pandemic.

Seal (GIS) also announced the closure of “at least 150 additional stores” by the end of the month. The Bermuda-based company has approximately 3,200 locations worldwide. The closings will represent more than $ 100 million in savings.

– Chris Isidore of CNN Business contributed to this report.

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