
With sales continuing to decline and losses mounting, Bon-Ton Stores Inc. said Thursday it plans to close at least 40 more stores by the end of 2018. Eliminating 40 stores would represent the shutdown of about a sixth of Bon-Ton's 260 department stores, furniture galleries and clearance centers in the United States. Up to this point, Bon-Ton, which is the parent company of Boston Store, Younkers and several other department store brands, has resisted the mass shuttering of locations. Earlier this year, Bon-Ton said it planned to close only four to six stores in 2017.
Total Retail's Take: At a time when there's some positive sentiment around the retail industry — Wal-Mart, Abercrombie & Fitch, Gap, Foot Locker all recently reported earnings that beat expectations and sent tock prices higher — the momentum hasn't extended to department stores. The category has been particularly challenged in 2017, with the struggles of Sears, Macy's, J.C. Penney highlighting the group. Bon-Ton is no exception. The retailer has lost money for the past six years, and reported Thursday that it lost $44.9 million in its fiscal third quarter as sales fell 7.6 percent. Through the first three quarters of 2017, Bon-Ton lost $135.4 million. It's hard to sustain the business at this rate, so the company is taking the cost-cutting measure of closing stores. Without a turnaround in its near future, Bon-Ton could be the next retail bankruptcy.

Joe Keenan is the executive editor of Total Retail. Joe has more than 10 years experience covering the retail industry, and enjoys profiling innovative companies and people in the space.