Barneys New York
In 2018, a $34 million dive in revenue from February to June landed the luxury department store company in bankruptcy court. Barneys New York filed for Chapter 11 protection in August of that year. Full-size Barneys department stores in Seattle, Chicago, and Las Vegas closed, as well as some smaller stores.
The century-old retailer launched with a sophisticated New York-chic discount appeal. As legend has it, Mr. Barney Pressman pawned his wife’s engagement ring in 1923 to procure the cash for opening a men’s clothing storefront on Seventh Avenue. It’s always been about style and panache. In the 1970s, Barneys added women’s apparel. But it wasn’t until the 1960s when a shift toward men’s designer fashions transitioned Barneys to its contemporary luxury presence.
National Stores Inc.
National Stores Inc. is a relatively small discount clothing chain with 344 stores. That was before it filed for Chapter 11 bankruptcy in August 2018. Since then, 74 shops were shuttered, with liquidation sales closing doors for good. All locations of the chain were closed by September 2022.
Some of the shops involved in National Stores closings are Fallas, Factory 2-U, Weiner’s, Conway, and Anna’s Linens. The stores’ negative profitability was attributed to a down-retail environment and lost revenue from Hurricanes Harvey and Maria. On top of that, there was a data breach that cost the company about $4.4 million.
Signet Jewelers
Signet Jewelers, home of Kay Jewelers, Zales, and Jared, the top mall brands, faired even worse than Victoria’s Secret. In 2018 Signet Jewelers shuttered 262 stores, most of them located in the U.S., and after a disappointing earnings report, the company announced plans to close 150 more stores.
2020, which was a bad year for business all around, saw the company making 15% less than the previous year, however, online sales were at an all-time high with a 58% rise. Signet Jewelers is the world’s largest diamond retailer, with more than 3,500 locations. Despite the 2% drop in sales, CEO Virginia C. Drosos remains optimistic.
Saks Off 5th
Saks Off 5th is the Nordstrom Rack of Saks Fifth Avenue luxury department store. The offshoot was launched in 1990 and became a popular high-end outlet store with over 100 locations nationwide. When Canadian retail giant Hudson Bay Company (HBC) acquired Saks Off 5th, along with its parent company Saks Fifth Avenue, it expanded both chains into Canada.
HBC also expanded Saks Off 5th to Europe. HBC scaled back its expansion, closing all of its European and Canadian stores. Although there are no official details, HBC estimates that 20 U.S. locations are on the cutting block. The move is part of a streamlining and growth effort, according to Saks Off 5th CEO Helena Foulkes.
Nordstrom
E-commerce is affecting nearly every brick-and-mortar sector. Retail has been hit the hardest, and Nordstrom is no exception. No less than three full-size department stores had to be closed down in 2019. Since then, Nordstrom announced four more closures. On the other hand, Nordstrom has developed a robust e-commerce enterprise.
According to The Motley Fool, the store’s digital sales brought in 30 percent of total sales, with nowhere to go but up. Sales are continuing to rise. Cutting back on lower-performing brick-and-mortar stores with the recent store closings is a strategic effort by the family-operated corporation to maximize future profitability.