A recent article in Forbes highlights how the current economic downturn coupled with the continued shift to e-commerce is forcing many retail chains to close some of their lowest-performing outlets. The article notes, “Through the first nine months of 2012, closings were up 25% over the same period from the prior year.” And forecasters predict a similar trend for 2013: “If growth is decelerating, how are you going to have (retail) growth? You’re not, you’re going to go on closing stores.”
Following are some of the retailers who are closing stores:
- Fashion Bug, which sells discount women’s apparel, is closing all 600 of their outlets following the earlier closing of 100 stores.
- Blockbuster, owned by Parent Dish Network, will lose 500 of its current 1500 locations. The rest may follow unless the chain is successful in updating their business model.
- Sears, which closed 172 stores last year, is now undergoing what some analysts call “an orderly liquidation” in which the rest of the stores will likely disappear.
- Abercrombie & Fitch is on track to close 180 outlets through 2015.
- Gap will be closing 100 stores as part of a multiyear downsizing plan began 6 years ago that will shutter 700 stores.
- Collective Brands, which owns Stride Rite and Payless, is closing 103 stores.
- Pacific Sunwear is closing 120 outlets.
And according to this listing for 2013:
- Macy’s is closing 5 stores.
- Bloomingdale’s, Coldwater Creek, Fred Meyer, Hallmark, Eddie Bauer, and Barnes & Noble are each closing one outlet.
While these numbers are not particularly good news for the local employees and corporate stockholders, they represent a great opportunity for resellers. The liquidation inventory from these chains has to go somewhere. Resellers who buy this inventory from the chains themselves stand to realize significant profits if they are careful and smart about it.
We will continue working to try to bring that direct access to all members of the B-Stock Sourcing Network to enable our small business members to grow their businesses profitably with a trustworthy and consistent supply of quality inventory.