Tallahassee is a rather stable market, insulated from dramatic swings in either direction, however, due to trends ongoing throughout the country people are starting to wonder what's going on with once-popular stores vacating their space at the Governor's Square Mall, the Capitol Region's largest shopping mall and other key areas throughout the city. Rather than write an entire article on how money leaving the local market is adversely impacting our quality of life, we will present the following headlines and allow you to make judgements for yourself:
Payless may file for Bankruptcy: Discount shoe retailer Payless Inc. is preparing to file for Chapter 11 bankruptcy protection and considering the closure of 400 to 500 stores, a number in line with plans announced last year as part of a new strategy emphasizing big box stores over mall locations.
Game over for GameStop: GameStop will close between 2% to 3% of its global store footprint — at least 150 stores — in the coming months. However, the gaming retailer also anticipates opening 35 new Collectibles stores and 65 Technology Brand stores worldwide.
Gander Mountain to liquidate 32 stores nationwide: Closures include stores in Alabama, Georgia, Illinois, Indiana, Minnesota, New York, North Carolina, Tennessee, Texas, West Virginia and Wisconsin. A full list of store closures is on Tiger Group’s website. “For outdoor enthusiasts, these 32 store-closing sales represent an extraordinary opportunity to find an amazing array of brand-name merchandise at significant discounts," Tiger Capital Group COO Michael McGrail said in a statement.
HHgregg to begin liquidation if no buyer emerges by weeks's end: Bankrupt electronics retailer HHGregg will proceed with liquidation of its business if it doesn’t attract a buyer within the week, according to a March 29 filing with the Securities and Exchange Commission. A request for comment or further details from Retail Dive to HHGregg was not immediately returned.
Vendors pull back from Sears as bankruptcy fears mount: Sears Holdings Corp. vendors say they’re scaling back deliveries and hiking payment terms in light of increased doubts about the embattled retailer's financial stability, Reuters reports. Sears Holdings shares have plummeted since the Tuesday filing of the company’s annual report, in which it expressed diminished hopes in its ability to continue operating as a going concerns.
Ralph Lauren shuttering New York Polo store, more closures to come: These decisions, along with cost-cutting efforts and leveraging of its real estate portfolio, will result in some $140 million in annualized expense savings, with near-term restructuring charges of about $370 million.
Report Q1 on track for worst retail earnings since late 2014: Retail earnings are on track to fall 6.8% year over year in the first quarter of 2017 — a 7% decline not including retail giant Wal-Mart, according to a Retail Metrics report emailed to Retail Dive. The results are even worse considering they’re against an “easy” comparison of a 2.1% rise in the first quarter of last year: “It has been a cruel [quarter] for the industry,” Retail Metrics president Ken Perkins wrote in the report. Barring a miracle, this makes Q1 the worst quarter since industry earnings dropped 7.1% in Q4 of 2013. The quarter’s negative earnings growth would mark the second consecutive negative quarter, the third negative quarter in the last six quarters and the first back-to-back quarterly earnings decline in three years, Perkins said.
The blame can’t be pinned on the rise of e-commerce alone, according to a separate report from GlobalData Retail emailed to Retail Dive. Consumers are more likely to say that they buy online because it’s “hard to shop stores” (64.6%) and “easy to shop online” (35.4%), GlobalData Retail found. While just 29.3% said they find online retail sites inspiring, a whopping 70.7% find stores uninspiring, according to the report.
The battle between the virtual world and a built environment pushes forward.