Just another time now, one more striking fact pops again about the closing of another big retail store. Recently on Tuesday J. Crew announced that it’s been planning to close 39 of its store by the end of January, which is 6 of its total and also double the number that it planned to close earlier.
The company that is also the owner of the stores of Madewell brand that sells at stores open dropped to almost 12% at least a year in the most recent quarter. The losses are surging up and a year in this same quarter the sales were down by 9%.
J. Crew that’s retained by the hedge fund, lost up to $161 million in the year’s first of the nine months, and it’s more recent loss got more than double for the quarter. The ascribed the leap in losses to its plan of transformation, which includes severance payment to about250 front-office employees those were laid off.
The chief operating officer, Mike Nicholson said that the company is devoted to changing from a long-established retailer of brick-and-mortar speciality to a digital-first business of today. He said that these closing of a store are a part of that plan.
According to one of the retail think tank, Fung Global Retail & technology more stores got closed this year-6,700 by the end of October this year, so far a record than any other year. The earlier high record was 6,100 back in 2008, during the Great Recession period.
As of the current time, the economy today is comparatively strong and unemployment is by far the lowest in 17 years, and credit also cheaper and readily available as well. ‘
As per the survey of consumers of National Retail Federation, they expect in spending of about $1,000 each this season of holiday, a record and from a year ago over 3.4%. But in the history of the survey, for the first time, online shopping has been seen more familiar than any traditional stores in this year.