11 retailers who may not live to see the end of 2018 year

Retail apocalypse ninth year.

Фото: Depositphotos

Many retailers in North America were destroyed in a “retail apocalypse” that began in 2010. The growth of Amazon and Walmart, the growth of fast fashion retailers, the habit of saving after the Great Recession and the closure of shopping centers have declined the stores.

Some retailers experienced a downturn, closing stores and expanding their presence in electronic commerce, but others were unlucky. USA Today proposes to consider 11 retailers who this year may not live to see the end of 2018.

Sears Holdings

The parent company Sears and Kmart has lost more than 95% of its market value over the past decade.

CEO Eddie Lampert, who ranked first in 2013, was unable to withstand industry change. Lampert closed stores and sold his brand Craftsman. These steps softened Sears' profits, but its revenues continued to decline.

Lampert’s latest “pivotal” plans, which include a partnership with Amazon and mini-Kmarts in Sears stores, do not impress investors. Wall Street expects Sears revenue to fall by 26% to $ 12,4 billion this year. This is a dismal situation for a company that has completed the last quarter with a debt of 3,5 billion dollars.

Sears Hometown and Outlet Stores

Sears created Sears Hometown and Outlet Stores in 2012. They sell household appliances, lawn and garden equipment, mattresses, clothing, sporting goods and tools.

Unfortunately, the new company went just as bad as the original Sears.

Shares of the company lost 95% of their value over the 9-year period, due to a consistent decline in revenues and losses. The 21 store closed during the quarter, and the company plans to close its stores in the city in the current quarter before 100.

JC Penney

JCPenney was in the same situation as Sears. The efforts of former CEO Ron Johnson between 2011 and 2013 for years, which alienated the main customers of the retailer, only aggravated the problem.

Marvin Ellison, who became CEO at 2014, expanded the retail business of furniture, appliances, sportswear and clothing for women. The company's sales growth stabilized, and he was not actively closing stores like Sears. Unfortunately, these efforts came to naught during the first quarter.

After three quarters of positive sales growth, they again became negative with a drop of 4%.

Фото: Depositphotos

Barnes & Noble

Barnes & Noble continues to be the largest bookseller in the United States. However, direct competition from Amazon has cut its market cap by 65% ​​over the past three years. Barnes & Noble has closed stores, expanded its internet business, and in 2015 created its Barnes & Noble Education division.

Barnes & Noble's revenue falls 15 straight quarters. In early July, the company announced that it had fired its CEO for “violating company policy,” without disclosing any further details.

Office Depot

Office Depot is another company that has been rendered obsolete by Amazon and other e-tailers. It tried to fend off the competition by merging with its rival Office Max in 2013, but merging two losers didn't make it a winner. Staples tried to buy Office Depot in 2015, but the merger fell through in 2016 due to antitrust concerns.

Over the past three years, the Office Depot stock market has lost more than 70% of its value.

NCG

For decades, customers have been buying vitamins and nutritional supplements at GNC stores. However, the growth of supermarkets, warehouse retailers and e-tailers has led to the obsolescence of the GNC business. In recent years, several lawsuits that have questioned the effectiveness of its ingredients have also tarnished the brand's reputation.

As a result, over the past three years, the share of GNC has fallen by more than 90%. His income declined nine quarters in a row, while analysts predict a 5% decline this year.

Vitamin Shoppe

GNC's main competitor, Vitamin Shoppe, faced the same problems that sank GNC. Its sales fall for the sixth quarter in a row, and analysts expect it to post a decline in sales of 5% and net loss for the full year.

Over the past three years, the company's volume has fallen by more than 80%.

Vitamin World

Vitamin World, which competes with GNC and Vitamin Shoppe, does not exceed its competitors. The company filed for bankruptcy last November and announced plans to close its stores with 124 and sell the remaining 210.

There is a glimmer of hope that GNC or Vitamin Shoppe can buy a company, but both companies are likely to prefer this defeated competitor to simply disappear.

Foot Locker

Фото: Depositphotos

Foot Locker was once a major destination for shoppers and sportswear. But in recent years, leading footwear manufacturers such as Nike, Adidas, and Under Armor have opened their own Mohazins and advanced their e-commerce platforms. Department stores, supermarkets and larger networks of sportswear also prevented Foot Locker from selling.

The company believes that closing stores, providing premium products from leading brands and new investments in e-commerce will return growth to it.

Payless ShoeSource

Payless ShoeSource filed for bankruptcy last April and subsequently closed around 900 stores around the world to reduce the number of stores to 3500.

Charlotte russe

To avoid bankruptcy, Charlotte Russe completed out-of-court restructuring in February. This step reduced the loan term from $ 214 million to $ 90 million, reduced interest expenses by about 50% and increased the repayment term by five years. But in return, lenders received 100% of the company's capital.

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