Everything must go: There’s a flood of store closings
March 7, 2014
Brick and mortar chain stores died this week, after a long illness. Born along Main Street, raised in shopping malls across post-World War II America, the traditional store enjoyed decades of good health, wealth and steady growth. But in recent years its fortunes have declined. Survived by Amazon.com and online outfits too numerous to list.
It may be too soon to write brick-and-mortar’s obituary, but it’s not looking good.
Radio Shack (RSH) announced Monday it will close up to 1,100 stores, or 20% of its locations in North America. On Thursday Staples (SPLS, Fortune 500) said it will close 225 stores.
“It’s a tough decision to close stores. But it’s something every good retailer does,” said Staples CEO Ron Sargent in a call with investors. “Stores have to earn the right to stay open.”