A slew of retailers closing stores this year tend to have one thing in common: they haven’t changed much over the past decade.
Take Express Inc., a fashion mainstay since 1980. It’s planning to shutter about 18% of its 584 stores, including the complete dissolution of its UpWest brand and the closure of an estimated 95 flagship stores.
U.S. department store Macy’s is closing 150 of its stores this year.
Teen clothing retailer Rue21 is closing all 540 of its outlets.
"These retailers, which didn't invest in their stores or keep current with trends, saw their consumer base simply walk past them," said Paul Chase, JLL’s Managing Director of Agency Leasing and Business Development. "Retail has always been about anticipating and meeting the needs of the consumer, which in today's world involves a seamless approach to in-store and online experiences."
It is predicted that by 2028, in the US alone, almost 50,000 retail outlets will shutter.
“As stores shut down, we can expect new and exciting concepts to take their place, thanks to changing consumer trends and shopping habits,” Chase says. “It's clear that well-located spaces will always be in demand, as seen by the speedy turnaround of recently closed stores.”
With survival challenging in the fast-evolving fashion landscape, retailers must rapidly adapt and innovate or risk becoming irrelevant, Chase says.
