Wal-Mart Stores Inc. (NYSE:WMT) American Eagle Outfitters (NYSE:AEO), Chicos FAS Inc. (NYSE:CHS) To Shut Down More Stores

-
0
Wal-Mart Stores Inc. (NYSE:WMT) American Eagle Outfitters (NYSE:AEO), Chicos FAS Inc. (NYSE:CHS) To Shut Down More Stores

Wal-Mart Stores Inc. (NYSE:WMT) and its brick-and-mortar retail peers are set to shut about 2,000 stores by the end of 2020. The mass store closure is largely a response to the difficulties legacy retailers are struggling with, such as falling store traffic. The rise of e-commerce service like Amazon.com, Inc. (NASDAQ:AMZN) has meant that the number of shoppers walking into stores physical is shrinking.

According to Green Street Advisors, it will take the closing of 25% all departmental stores in the U.S. before traditional retailers can see sales-per-square-foot return to the levels last seen in 2006.

Big brands shrinking their store footprint

Wal-Mart intends to close 154 stores in the U.S., but the retailer also plans to open 300 stores in its global markets. Amazon and Wal-Mart have recently stepped up their investment to grow market share in India.

American Eagle Outfitters (NYSE:AEO) is shutting 150 stores in the coming 3 years, while Chicos FAS Inc. (NYSE:CHS) will have closed 120 stores by the end of 2017 as part of store restructuring that began in 2015.

The Children’s Place Inc (NASDAQ:PLCE) will eliminate 200 stores from its portfolio by the end of 2017, while Finish Line Inc (NASDAQ:FINL) plans to shut 150 stores by 2020.

Macy’s Inc. (NYSE: M) is closing 100 stores, while Tailored Brands Inc (NYSE:TLRD) is shutting 250 stores. Office Depot Inc (NASDAQ:ODP) planned to eliminate 400 stores from its portfolio by the end of the year after it merged with OfficeMax.

Sears Holdings Corp (NASDAQ:SHLD) will close 142 stores of Sears and Kmart brands.

Walgreen Boots Alliance Inc (NASDAQ:WBA) has decided to eliminate 154 stores and it could do more as it tries to win regulatory approval for its acquisition of Rite Aid Corporation (NYSE:RAD). Wolverine World Wide Inc. (NYSE:WWW) also said it intends to close 100 stores worldwide.

Retail revenue set to jump 4%

Although major retailers in the country are planning to close stores, this holiday season is expected to see an uptick in retail sales. Estimates call for holiday season revenue rising 4% over last year and same-store sales jumping 1%. However, retail profits in the fourth quarter are expected to decline 1.8%.

Wal-Mart shares declined less than 0.1% on Friday, but the stock is up more than 13% YTD.