Perry Ellis to Close 15 Stores as Losses Grow
Perry Ellis International said Thursday that it would close 15 stores, or about a fifth of its base, the latest sign of a shrinking physical retail presence across the U.S. as consumers increasingly opt to shop online. The decision is part of a broader plan to support the business as the Miami-based retailer reported a second-quarter loss that ballooned from a year earlier and said sales slid 5.5 percent.
Total Retail's Take: As often seems to be the case lately, we're reporting on another company closing brick-and-mortar stores. This time it's Perry Ellis; last week it was Macy's; the week before that, Office Depot. Who will it be next week? The economics for today's brick-and-mortar retailers are troubling — expensive leases, dwindling foot traffic, lost sales to online retailers (ahem, Amazon), and consumers that aren't willing to purchase without a discount. Those that succeed will smartly integrate other channels into the in-store experience, while providing a level of service that can't be matched online.