Can retail be rescued? Why so many U.S. stores are closing
The tumultuous times for traditional retailers continue as women’s clothing brand Charlotte Russe announced this week it is closing all of its stores, including its location in Modesto’s Vintage Faire Mall.
The news marks a period of change for the north Modesto shopping center as many national brick-and-mortar retailers continue to struggle. According to Coresight Research, some 4,300 retail stores closed in the first two months of this year.
Charlotte Russe will close all 512 of its stores within the next two months following a bankruptcy filing, according to the Associated Press. Liquidation sales are expected to begin immediately. The women’s clothing seller opened at Vintage Faire Mall in 2015.
Last week the mall dodged another major loss when it was announced the J.C. Penney would remain open despite other closures across the country.
The fate of Vintage Faire Mall’s Victoria’s Secret and Gap stores remains up in the air, as both apparel retailers announced closures last week. The Gap plans to close 230 stores in the next two years and Victoria’s Secret will shutter 53, but neither company has announced which locations yet.
The mall’s largest closure this year has been the departure of Sears, which was one of the center’s original anchors when it opened in 1977. The venerable brand has closed 3,500 of its stores, including the Vintage Faire location at the start of the year, but was saved from full liquidation by a last-minute bid from its former CEO.
Last month, Payless ShoeSource said it was shuttering all of its 2,100 stores in the United States and Puerto Rico. The chain has two stores in Modesto, at Vintage Faire Mall and Plaza Parkway, and one location each in Turlock, Atwater, Merced, Manteca and Tracy.
Earlier this year, children’s clothing retailer Gymboree announced it was filing for bankruptcy and would close its 540 locations. The company also owns the children’s brand Crazy 8, which is closing as well. The Gymboree and Crazy 8 locations at the Vintage Faire Mall are in the process of closing and holding large going-out-of-business sales.
Other causalities this year at Vintage Faire include Swarovski crystal shop and Cal-Time, a long-running local watch and jewelry store whose owner retired.
The future of some other mall retailers could also be in question as large corporations reveal their store closure numbers for the year. Last month Foot Locker said it would close some 165 stores. The athletic shoe seller has about 880 locations in the United States including a location in Vintage Faire.
Youth-focused clothing seller Abercrombie & Fitch, which has a site in the mall, announced this week it will be closing 40 stores later this year, but not which locations.
In January, women’s clothing retailer Chico’s revealed it would close 250 stores over the next three years. Chico’s opened in the new outdoor extension of Vintage Faire Mall in 2011.