First Quarter Roundup 2010: Retail Stores Closing Doors

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Retail Stores Closing Doors

First Quarter Roundup 2010

Announcements continue to roll in from retailers that have decided to close stores, slow expansion plans or cease operations altogether.

From Ann Taylor to Waldenbooks, we update our ongoing roundup with the latest news from the first quarter of 2010. Read on to see which retailers are closing (at least some) of their doors.

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Announced: March 12, 2010
In a March 2010 press release, Ann Taylor updated expectations related to the store closure component of its strategic restructuring program. Under the program, the Company closed 60 stores in fiscal 2008, 42 stores in fiscal 2009, and expects to close approximately 72 stores in fiscal 2010, for a total of approximately 174 store closures under the 3-year program. Of these, approximately half are expected to be Ann Taylor stores and half are expected to be LOFT stores.

Announced: February 24, 2010
For the full year of 2010, Blockbuster expects to close a range of 500 to 545 underperforming domestic company-owned stores. Of these, Blockbuster has already closed 253 stores in January 2010 and has identified approximately 150 other stores that are expected to be closed in April 2010. The Company then expects to close approximately 75 to 125 more stores throughout the remaining portion of 2010

Announced: February 10, 2010
Jones Apparel plans on closing 165 of its specialty retail stores in 2010. While the company declined to say which of its stores would be closed, they indicated that the mall-based retail locations would be closed to allow increased focus on their outlet stores. In 2009, Jones Apparel closed 100 mall-based retail stores which has produced positive results for the parent company of Nine West, Anne Klein, Bandolino and Easy Spirit.

Announced: January 18, 2010
In a January press release about disappointing holiday sales, Borders Group, Inc. reiterated its decision to close 182 Waldenbooks Specialty Retail stores. According to CoStar‘s Retail News Roundup, Borders has been “whittling down its Waldenbooks chain since 2001, closing an average of 66 stores per year through 2007. In 2008, 112 stores were closed.”

Announced: March 3, 2010
In 2010, Foot Locker plans to consolidate its Foot Locker, Lady Foot Locker, Kid Foot Locker and Footaction operations under one management structure. As part of this initiative, it closed 106 underproductive stores during the first quarter and eliminated 120 corporate positions. The company also closed 179 stores in 2009.

Announced: February 2, 2010
Movie Gallery filed for Chapter 11 bankruptcy in February. While not going out of business, the restructuring called for the immediate liquidation and closure of approximately 760 stores. After these initial closings, the company operates 1,906 stores in the U.S., including 1,111 Movie Gallery, 545 Hollywood Video and 250 Game Crazy locations. The company anticipates additional store closings during the Chapter 11 process.

Announced: January 26, 2010
Due to the recession and lingering housing crisis, Home Depot announced it would lay off 1,000 employees company-wide. In addition, it decided to close three pilot stores: a clearance center in Austell, Ga., a hurricane recovery store in Waveland, Miss. and a small-format store in Wilson, N.C. The company said there were no plans to close any of the chain’s flagship “orange box” stores. It remains the largest home improvement store in the U.S. with 1,976 stores.

Announced: February 2, 2010
The Walking Company filed a reorganization plan under which the company intends to keep 207 of its 214 current store locations open. This was a turnaround from its original plan, announced in Dec. 2009, to close 90 of its underperforming locations.

Announced: January 14, 2010
The skin-care products company filed for bankruptcy in July 2009. But, according to the BNET Retail Blog, Crabtree & Evelyn will actually emerge from the bankruptcy — something that is unusual in the retail arena. In the end, the company will only need to close 35 of its 126 stores.

Announced: January 25, 2010
Boise, ID-based Albertsons LLC is in the process of closing 11 underperforming stores. Specifically, the grocery retailer is closing eight stores in Florida, as well as three stores in Colorado. This latest round of closures will leave Albertsons with 22 stores in Colorado and 20 in Florida; as well as more than 180 stores in Arizona, Arkansas, Louisiana, New Mexico, and Texas. (Note: Albertsons LLC is not affiliated with Supervalu, which operates 463 Albertsons stores.) (Source: CoStar Retail News Roundup)

Announced: January 11, 2010
In January, Bloomberg reported that Wal-Mart Store’s Inc. said it was closing 10 “financially underperforming” Sam’s Club locations in the U.S. However, the company also said it has plans to add six more stores this year. Wal-Mart operated 605 Sam’s Club stores as of Oct. 31, 2009.

Announced: February 8, 2010
Disney is in the process of liquidating and shuttering 24 U.S. and 3 Canada Disney Store locations. As of October 2009, there were 340 total locations. The closures are part of an effort to revamp its existing stores to be interactive and more in keeping with the “Magic Kingdom” theme park feel. (Source: CoStar Retail News Roundup)
Announced: March 15, 2010
The fashion retailer announced that it will close the majority of underperforming stores in the U.S. and sell its Nicole Farhi business as part of a restructuring plan. The total of U.S. stores to be shuttered is numbered at 17, but F.C.U.K. has not released the specific location of those stores.

Announced: March 10, 2010
In its 4Q 2009 conference call, the company announced that due to geographic overlap caused by its 2006 acquisition of the AfterHours Formalwear chain, the company has identified 145 stores that it would likely close.

Announced: March 9, 2010
Specialty apparel retailer, American Eagle Outfitters is shuttering its MARTIN + OSA brand, including its 28 stores and online business. The company expects to conclude the liquidation of the MARTIN + OSA stores by the end of this July. The company opened the first MARTIN + OSA stores, which carried sportswear and casual apparel for men and women age 25 to 40, in fall 2006.

Announced: March 11, 2010
Williams Sonoma CFO Sharon McCollam said that the specialty retailer intends to shutter an undisclosed number of stores in large, multi-store markets during the next three years.

Announced: January 5, 2010
Macy’s said it is closing five stores as part of its ongoing effort to weed out underperforming locations amid opening new ones. Following these store closures, Macy’s will operate 849 stores, comprised of 809 Macy’s and 40 Bloomingdale’s stores.

Announced: January 7, 2010
Trans World Entertainment Corp. continues to whittle down its store fleet. By the end of January, it planned to have closed 161 stores during the prior 12 months. This follows 101 store closures in fiscal 2008. Following this latest closure effort, Trans World would be left with 553 stores. Trans World hit a peak store count of 1,091 in 2006, following its acquisition of Musicland. The majority of Trans World’s stores are F.Y.E., but its portfolio also includes Saturday Matinee, Coconuts, Spec’s and Wherehouse Music. According to CoStar Tenant, the typical F.Y.E. store is 3,000 square feet and located in an enclosed mall. (Source: CoStar Retail News Roundup)