The retail industry has taken some brutal blows amid the COVID pandemic, with mom-and-pop shops and major global brands alike making the tough decision to close stores to compensate for major sales losses. Now yet another beloved brand is shuttering a number of its retail locations due to flagging sales. According to WWD (via Yahoo!), watch and accessories brand Fossil plans to close up to 75 of its retail locations due to COVID-related losses.
According to a new earnings report, the company has seen $96 million in losses over the past year. In the three months ending Jan. 2, Fossil saw sales of $528 million; during the same period the year prior, revenues were $712 million, losses the brand attributed to the COVID-related reduction in customer traffic to its 421 retail locations.
However, Fossil CEO and chairman Kosta Kartsotis expressed optimism that the brand could regain its footing in the industry with organizational changes, including the appointment of Sunil Doshi as the company’s new CFO and treasurer and former CFO Jeff Boyer helming the roles of company COO and chairman of the Fossil board.
“Our goal is to become a digital-first organization, which also encompasses strengthening our operational platforms, including supply chain, operations, logistics, information technology and sustainability initiatives,” explained Kartsotis. Fossil isn’t the only brand that’s been forced to make major changes amid the pandemic, however; read on to discover which other stores are closing amid the pandemic. And for some shopping experiences you’ll never have again, This Beloved Chain Is Closing All Its Stores.
Popular footwear chain DSW announced in March that it plans to shutter 65 of its 501 retail locations. CEO Roger Rawlins noted that the closures had come as a result of a serious financial dip, with sales declining 34 percent during the pandemic. "Until [customers] come back to us for the social occasion, this is the game that we've gotta play," Rawlins explained during a sales call on March 16. And for the latest store closure news delivered straight to your inbox, sign up for our daily newsletter.
The Children’s Place
In March, kids clothing and accessories store The Children’s Place announced plans to shutter 122 stores by the end of 2021, following the closure of 178 Children’s Place stores in 2020.
The decision was largely “driven by the impact of permanent and temporary store closures and the negative impact of reduced operating hours in our mall stores, as mandated by the mall owners” related to the pandemic, the brand said in a statement. And for a company losing customers for another reason, This Is Why Everyone's Mad at LOFT Right Now.
Gap and Banana Republic
Mall staples Gap and Banana Republic will be closing 100 stores in the near future, parent company Gap Inc. announced in March. However, Gap Inc. will be expanding the reach of its other, more profitable lines, Old Navy and Athleta. The company has plans to add between 30 to 40 new Old Navy stores and between 20 and 30 new Athleta stores to its portfolio in 2021.
The Disney Store
The world may be getting a little less magical in the near future now that Disney has announced plans to close 20 percent of its Disney Store retail locations. However, the beloved retailer will expand its reach online and through existing retail channels, including stores in Disney Parks and through merchandise sold at big box stores, including Target. “We now plan to create a more flexible, interconnected e-commerce experience that gives consumers easy access to unique, high-quality products across all our franchises,” said Stephanie Young, president of consumer products, games, and publishing, in a statement. And for more stores closing up shop, This Popular Gift Store Just Filed for Bankruptcy.