Why Are Stores Closing, And What Can They Do About It?

 

Across the country, many stores are closing. These include Curt Smith's Outdoors, AT&T, Bed Bath & Beyond, House of Fraser, Starbucks, and many others. But what can these companies do to keep their stores open and thriving?

Starbucks

Earlier this summer, Starbucks announced plans to close 16 stores nationwide. A senior vice president of the company's US operations wrote an internal memo explaining why the chain decided to leap.

The memo outlined some changes to Starbucks' operations. For example, it included new safety measures, such as training employees on mental health first aid and how to de-escalate an active shooter situation. The memo also noted that Starbucks is expanding the number of company-owned or licensed stores in the United States to more than 9,000 by the end of its fiscal year.

The memo also mentioned that Starbucks plans to transfer affected workers to neighboring stores. The company plans to meet with workers this week to discuss a possible transfer.

Bed Bath & Beyond

Earlier this year, Bed Bath & Beyond announced a major restructuring plan. That included removing many senior executives and laying off 20% of its workforce.

This restructuring plan includes the closure of "lower-producing" stores nationwide. Bed Bath & Beyond is also eliminating many private label brands. This is part of the plan to boost profits. Instead, the company plans to focus on national brands more. It will also bring back some of its most popular names. In addition, it expects to change its inventory and offer fewer items for sale on some remaining brands.

Bed Bath & Beyond has been dealing with several bad results for years. In the second quarter of its fiscal year, the home products chain reported a 26% decline in sales. It also cited "underperformance" as the main driver.

House of Fraser

Thousands of jobs are at stake as House of Fraser is set to close 31 of its 59 stores. Analysts believe the chain needs to respond to changing retail trends.

House of Fraser is a department store chain. The brand stocked homeware, beauty, and gifts. It has 44 stores in the UK. It has a history of being a local retailer in its hometown of Bournemouth.

The company has faced numerous challenges recently, including rising rents, online competition, and staff costs. However, the company has secured the backing of 75 percent of its creditors. Despite this, it has struggled to recover.

Curt Smith's Outdoors

Despite its illustrious history, Curt Smith's outdoors is in the abyss of death. The only way to salvage the business is to find a savvy investor willing to take the baton off your hands. Not to worry, plenty of reputable opportunists are out there waiting to make a move.

One such fan is Mike Petrekovich, a former General Motors employee who has been at it for the past thirty years. Using the requisite capital and a few shrews, this man of many hats is tasked with saving the day. In the process, he uncovered some interesting facts. While he was at it, he learned that Curt Smith's outdoor is a subsidiary of Jordan Outdoor Enterprises, Ltd., which boasts more than a dozen locations in the greater Chicago area.

AT&T

Earlier this year, AT&T announced that it would be closing several hundred retail stores. The company said the move was part of a more significant trend to reduce costs and increase labor productivity.

AT&T has said that the move will lead to several thousand job cuts. The cuts will be in the form of many different areas, including clerical, management, and technicians.

The company has said that most jobs will be eliminated through voluntary buyouts, whereas other methods will cut the rest. AT&T plans to cut $6 billion from its operations, including the above cutbacks.

The move has sparked criticism from the Communications Workers of America, representing several thousand AT&T employees. According to CWA, the company's job cuts will include "3,400 technicians, 1,300 additional workers at AT&T Mobility stores, and approximately 1,300 workers at AT&T Cricket Wireless stores."

Those affected will receive a guaranteed offer for a different position within the company. In addition, workers who do not accept the request will be offered severance pay.

Sears

Almost two months after filing for bankruptcy, Sears and Kmart are preparing to begin liquidation sales. By the end of the year, the retailer will have closed more than 80 stores. That's about 250,000 fewer jobs than it had 15 years ago.

According to the company, a Sears store in New York is set to close in December. It was the only full-line Sears store in the state. The Brooklyn store was a shopping staple in that neighborhood for decades.

Sears and Kmart had 2,000 stores five years ago in the United States. Now, they'll have 182 locations.

A new wave of Sears store closings is set to hit the Midwest and Northeast regions of the country. They include a Sears Hometown store in Wisconsin. Sears also plans to close a Kmart location in New York.