Article

2017-06-11 Economy

Ann Taylor, Dress Barn, Loft, Lane Bryant: Store closures on the way

[MONEY.CNN] Ascena Retail Group (ASNA) -- which owns the Ann Taylor, Dress Barn, Loft, Lane Bryant, Justice, Maurices and Catherines stores -- plans to shutter between 250 and 650 locations over the next two years.

Chief executive David Jaffe made the announcement during a conference call with investors Thursday, and he didn't specify how many store closures will affect each brand. Ascena could not be immediately reached for comment.

Jaffe said 250 locations will definitely close down, and another 400 will close their doors unless the company can negotiate lower rents at those locations.

He said that the move is necessary to help the company traverse the deeply troubled
...meaning it might require more than two 'tuts'. If the other side responds at all it's known as a 'tut for tat' and it's worth 20 diplomatic points..
brick-and-mortar retail market. Jaffe said Ascena is facing a "persistent traffic decline" and expects that to remain a "major headwind" for the company.

Ascena is far from the only company feeling the pressure. Stores that were once staples of American malls are failing rapidly, largely because of increasing competition from digital retailers like Amazon (AMZN, Tech30).

Earlier this week, Hudson's Bay (HBAYF) -- owner of Saks Fifth Avenue and Lord & Taylor -- said it is cutting its workforce by 2,000 jobs.

Macy's (M) said earlier this year that it will close 68 stores and cut 10,000 jobs.

JCPenney (JCP) is shutting down 138 stores by August. Bebe said it planned to shut down all of its stores by the end of May.

GameStop (GME) said in March it will close more than 100 retail locations.

The parent company of Kmart and Sears (SHLD) said in January it will shutter 150 stores.

And without their thriving tenants, malls have been hit hard by the retail woes. A June 2 report from Credit Suisse estimates 20% to 25% of American malls will close within the next five years.

Posted by Fred 2017-06-11 00:00|| || Front Page|| [4 views ] Top

#1 I see markets, flea markets. I see containers of Buri furniture and nested baskets everywhere. Cinnamon candles and Ol 'Mil.

Posted by Shipman 2017-06-11 03:15|| 2017-06-11 03:15|| Front Page Top

#2 Apparently the Fourth Turning applies to retail also.

Posted by no mo uro 2017-06-11 05:55|| 2017-06-11 05:55|| Front Page Top

#3 I'm not buying shoes online. I have to try them on. I did buy a Coonan and a Super Vel tee shirt online recently...

Posted by M. Murcek 2017-06-11 08:33|| 2017-06-11 08:33|| Front Page Top

#4 Ascena Retail Group (ASNA) -- which owns the Ann Taylor, Dress Barn, Loft, Lane Bryant, Justice, Maurices and Catherines stores -- plans to shutter between 250 and 650 locations over the next two years

Didn't get a hint from the fall of General Motors making basically the same cars under different names? You can only push your product so far, and having redundant management and dealerships/store fronts only compounds the cost of overhead to the entire process. Unlike government, allowing the 'suits' to build little empires eventually starts to hammer the bottom line.

Posted by Procopius2k 2017-06-11 08:45|| 2017-06-11 08:45|| Front Page Top

#5 My wife buys shoes on line with Amazon prime and just returns those that won't cut it.

She's a big girl and stores don't usually carry her size so.........

This works pretty well with much less hassle.

Posted by AlanC 2017-06-11 08:48|| 2017-06-11 08:48|| Front Page Top

#6 Shoes are one of the things I buy online. Outside of work, I have been wearing Teva sandals for ever, and you get to choose from the full range online. Whereas retail outlets only have a small selection.

Posted by phil_b 2017-06-11 18:26|| 2017-06-11 18:26|| Front Page Top

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