J.Crew Store Closures to More Than Double in 2018
J.Crew said it plans to close about 50 stores by the end of January, more than double the roughly 20 shutdowns the company announced in June. The announcement darkened the holiday sales season for the New York City-based company, which is among the many U.S. retailers shutting traditional stores as consumers increasingly shift their purchasing to online. Sears, Macy's, J.C. Penney and other companies have announced their own store closings this year. J.Crew executives characterized the closings, announced with downbeat third-quarter earnings last week, as part of a plan to be where buyers want to be.
Total Retail's Take: J.Crew is yet another fashion and apparel retailer with roots in brick-and-mortar that's struggling to adapt. The company joins the likes of Gap, L Brands (Victoria's Secret), Chico's and others looking for ways to evolve their businesses to meet the changing demands of today's shoppers. Closing underperforming stores and investing more heavily in digital and omnichannel offerings seems to be the route most traditional retailers are choosing, including J.Crew.
"We must evolve our business model from a traditional brick-and-mortar specialty retailer to a digital-first omnichannel business," J.Crew President Michael Nicholson told financial analysts.