Wednesday, May 21, 2008

Tough Times for Some Local Stores

The retail industry is especially challenging right now as consumers are tightening their purse strings and the cost of goods and transportation keep rising. Here are a few local stores that are falling on tough times:

Disney Store: The Mouse wants control. Disney is taking back its stores from a subsidiary of Children's Place and is scaling back as it restructures because sales have been dropping over the last year. Locally, the Disney Store in the Capital City Mall will be closing and is in the middle of a going out of business sale. Discounts are up to 40% off right now.

Ann Taylor: Times are tough for luxury clothes brands and Ann Taylor is finding it hard to compete. Last December sales were down 9.4 percent, leading to the closing of 16 percent of the company's store count by 2010. Locally, there is no indication that our area stores will close.

Pier 1 Imports: After shedding 79 stores in 2007, sales are still declining. So the furniture and home accessory specialist is planning another cut back – this time closing just 25 more stores and selling its corporate headquarters. Locally, there is no indication that our area stores will close.

Kirkland's: Management of the national home-decor chain told analysts it intends to close 30 underperforming stores during the fourth quarter, which ended in January. It is considering closing even more stores (up to 100) in the next 18 months, saying it wants to focus on stores not based in malls. Locally, there is no indication that our area stores will close.

Linens n' Things: The bedding- and home-furnishing retailer said it plans to close 120 underperforming stores in its chain of 589 locations as it filed for chapter 11 bankruptcy protection in May. Locally, the Linens n' Things stores in this area will not be closing.

2 comments:

Classic MaMa said...

I was totally bummed when I found out about the Disney Store. They tell me that the outlet in Hershey will still be open, though.

The Gang's All Here! said...

40% is not that great a sale price for Disney, though I'm sure that when word spreads that they are leaving things will fly off the shelf for the "panic" of it. I'll have to check if ours is going or staying. . .