Express to Close 100 Stores by 2022 as Part of Turnaround Plan
Fashion retailer Express announced plans to shutter approximately 100 of its stores by 2022 in an effort to save costs, CNBC reported. The plan would save the company $80 million in costs annually over the next three years. Express also announced that it will be restructuring its workforce, which will impact about 10 percent of the jobs at its headquarters in Ohio as well as its design studio in New York.
CNBC reported that nine of the 100 stores are already closed, with another 31 expected to close by the end of this month, and another 35 going dark by the end of January 2021. Including factory outlet locations, Express currently operates more than 600 stores in the U.S. and Puerto Rico. By lowering costs, Express believes it will help boost its earnings before interest, taxes, depreciation and amortization by $15 million, CNBC reported.
Total Retail's Take: Express is following in the footsteps of other retailers like Gap, GameStop, Pier 1 Imports, and others, which scaled back their physical footprints last year in an effort to cut costs. This announcement shows that Express is feeling the pressure of the current apparel retail landscape in which more consumers are either shopping online, turning to subscription and rental services, or just cutting back on spending money on clothes entirely. The retailer believes this strategy of closing unprofitable stores will help get it back on the right track.
Ashley Chiaradio is the Senior Content Strategist at Total Retail. Ashley has been creating content for more than 7 years, and provides a unique insight in covering the retail industry having worked directly for retailers in the past. She’s passionate about profiling women leadership in the space.