Several stores have announced closures to come in August, and consumers across the country could be impacted.
While some retail chains’ closures could disrupt shoppers’ grocery buying habits, other shops will shut their doors in the clothing and apparel space.
Why It Matters
The retail industry has faced widespread disruption since the coronavirus pandemic, when many consumers first opted for online shopping over brick and mortar stores.
Almost 25 percent of America’s largest shopping malls are anticipated to close by 2027, according to research from real estate services firm Green Street Advisors.
What To Know
During the month of August, a few retail chains will be closing their doors.
Harris Teeter
Harris Teeter previously said it would be closing several stores by the end of summer.
This includes the shop located at 3600 S. Glebe Rd., Suite W100 Arlington, Virginia, 22202, which is set to shut down by August 4.
Harris Teeter’s parent company, Kroger, also said it would be closing 60 locations over the next 18 months.
Kroger
While Kroger owns Harris Teeter, the Kroger brand itself is also set to shut down a store in August.
The Gassaway, West Virginia, store is scheduled to close in August, according to local station WCHS.
“Our commitment to driving growth in our core business and moving with speed positions us well for the future,” Kroger chairman and CEO Ron Sargent said regarding first quarter results.
“We are confident in our ability to build on our momentum, deliver value for customers, invest in associates and generate attractive returns for shareholders.”
Nordstrom
Outside of the grocery sector, Nordstrom will shutter two of its stores in August.
This includes the Saint Louis Galleria Nordstrom store in St. Louis, Missouri, as well as the Nordstrom store in Santa Monica, California. Shoppers will have to say goodbye to each store by August 24 and August 26 respectively.
“We believe we’ll be best able to serve customers in each region by leveraging our surrounding stores and through our digital channels,” a Nordstrom spokesperson told Newsweek in a statement. “Decisions like this are never easy, and we understand the impact they have on our team members.”
Newsweek reached out to the impacted companies for comment via email.
What People Are Saying
Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: “This all comes down to one thing: profitability. Stores are closing across the country to improve profitability and improve performance.”
“This is common in the retail industry as companies traditionally expand a bit too much during boom times and then need to consolidate and reduce footprint when times are lean. We are heading into those leans times as prices remain higher for the end consumer and capital becomes more expensive over time as corporations finance their debts.”
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “Efficiency is what is triggering most of these store closures and industry changes. Major retailers are taking a hard look at underperforming locations and making decisions on whether to restructure their operations or close them, and for some, closure is the more fiscally sound decision.”
What Happens Next
Shoppers can likely anticipate further retail closures as companies make these decisions based on continuously changing profits and revenue.
“As inflationary pressures and pricing changes continue to affect the marketplace, we could unfortunately see more of these,” Beene said.
The post List of Stores Closing in August appeared first on Newsweek.
