Why big retailers are shuttering stores
Growth in online shopping, high energy costs, and overcapacity are among the factors being blamed for a recent spate of store closures.
" NEW YORK (CNNMoney.com) - It's only three weeks into the New Year but retailers have already gotten their hands dirty with an early bout of in-house spring cleaning.
Instead of talking about their growth plans for 2006, many big-name retailers instead are announcing store closings.
It's a "bit unusual," said retail analyst Howard Davidowitz, chairman of Davidowitz & Associates, who attributed the trend to a "unique confluence of events."
Among those retailers closing locations are jeweler Zale Corp. (Research), which is set to turn off the lights at more than 30 of its high-end Bailey Banks & Biddle stores.
Office supplies seller OfficeMax (Research) announced it will close 110 of its 950 U.S. outlets this year as part of its ongoing restructuring efforts. Department store chain Mervyn's plans to close a third of its stores in 2006.
Toy seller Toys R Us is closing 75 of its namesake stores, most of them by springtime, and converting 12 others to Babies R Us locations.
Music retailer Musicland Holding Corp., which filed for Chapter 11 bankruptcy this month, is considering a "significant number of closings of unprofitable stores" under the Sam Goody and Suncoast names, company spokeswoman Laurie Bauer told CNNMoney.com Monday ..."
http://money.cnn.com/2006/01/24/news/companies/retail_retrenchment/index.htm
" NEW YORK (CNNMoney.com) - It's only three weeks into the New Year but retailers have already gotten their hands dirty with an early bout of in-house spring cleaning.
Instead of talking about their growth plans for 2006, many big-name retailers instead are announcing store closings.
It's a "bit unusual," said retail analyst Howard Davidowitz, chairman of Davidowitz & Associates, who attributed the trend to a "unique confluence of events."
Among those retailers closing locations are jeweler Zale Corp. (Research), which is set to turn off the lights at more than 30 of its high-end Bailey Banks & Biddle stores.
Office supplies seller OfficeMax (Research) announced it will close 110 of its 950 U.S. outlets this year as part of its ongoing restructuring efforts. Department store chain Mervyn's plans to close a third of its stores in 2006.
Toy seller Toys R Us is closing 75 of its namesake stores, most of them by springtime, and converting 12 others to Babies R Us locations.
Music retailer Musicland Holding Corp., which filed for Chapter 11 bankruptcy this month, is considering a "significant number of closings of unprofitable stores" under the Sam Goody and Suncoast names, company spokeswoman Laurie Bauer told CNNMoney.com Monday ..."
http://money.cnn.com/2006/01/24/news/companies/retail_retrenchment/index.htm
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