Apparel Online Bangladesh Magazine June Issue 2018 | Page 74

WORLD WRAP TO ADVERTISE GOING TO A GOOD EVENT? Contact Rani Mahendru [phone] (512) [email protected] Send your industry gossip, photos and news to [email protected] Mix bag of results for clothing retailers… STORE CLOSURES TO CONTINUE Overall retail in the US has been looking up with business forecaster Kiplinger’s latest prediction on retail sales and consumer spending, indicating growth in sales, excluding gasoline and autos by 4.2%, a bit better than 2017’s 4.1% pace. Although cool spring weather across most of the country is hurting clothing, home improvement and department stores’ sales, the situation should turn around once warmer weather sets in. However, what is for sure is that department stores will see only modest growth, as will clothing retailers. The reasons are many, but surprisingly year- end results announced in March and first quarter sales for 2018 of many department stores and clothing retailers, have shown improved results, fooling many into thinking that the crisis is over! T here was a buzz in the stock market, as retailers that were considered down and out, included Macy’s, Kohl’s and even Dillard’s, beating Wall Street expectations in their latest financial reports filed in March. Many forecasters upscaled their predictions, but others prudently warned that better performance comes mostly against a backdrop of easy comparisons, an unusually strong holiday season and tight inventory management. Industry watchers also pointed out that large store closing also affects the remaining ones positively, as the competition among seemingly similar stores, decreases. Store closures have been on a high with almost all department stores closing ‘unprofitable’ locations across the country. Nearly a dozen more of Macy’s department stores will soon be closing their doors as a part of the retailer’s plan to close approximately 100 stores, which was announced back in August 2016. After closing more than 140 stores in 2017, JCPenney is shutting down one of its distribution centres and eight more stores nationwide, affecting about 670 jobs with the closing of the distribution centre and around 480 employees with the closing of its eight stores. The retailer has failed to gain any real traction despite Sears’ flagging fortunes and has been continuously disappointing the retail analysts. 74 Apparel Online Bangladesh | JUNE 2018 | www.apparelresources.com Just days after the holiday shopping season ended, Sears Holdings announced that it has decided to shut down more than 100 stores, of which 64 are of Kmart and 39 are Sears’ stores. “Sears Holdings continues its strategic assessment of the productivity of our Kmart and Sears store base and will continue to right size our store footprint in number and size,” the company said in a statement, adding, “In the process, as previously announced, we will continue to close down some unprofitable stores as we transform our business model so that our physical store footprint and our digital capabilities match the needs and preferences of our members.” The company shut more than 350 locations last year. Ascena Retail Group, the women’s clothing retailer that operates the brands Ann Taylor, Loft, Dress Barn, Lane Bryant, Justice and several others, is planning to wind up hundreds of stores. In June 2017, the company executives announced that 667 stores are part of its fleet optimisation programme. At least 268 of those stores will definitely be closed by July 2019. The remaining 399 stores will be shut down if rent concessions aren’t obtained through negotiations with landlords, as maintaining these stores have become a financial burden on the company. Even retailers doing relatively better, are looking to downsize. With