The COVID pandemic forced several businesses to get rid of their retail space completely in 2020, and many other retailers were only able to stay afloat by downsizing their store footprint significantly. While the situation has improved in many ways since then, companies are now struggling under the weight of inflation, which is currently the highest it's been in the U.S. in more than 40 years.
Major retailers like Walmart and Target have already warned shoppers that rising inflation could have a severe impact, and many companies are doing what they can to prevent major losses down the line. One retailer is already planning to close stores this month as part of a larger initiative to adapt to the current market conditions. Read on to find out what popular clothing chain will be shuttering locations in June.
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Several clothing chains have closed stores in the last year.
iStockClothing companies have taken a significant hit over the last few years. In March, H&M announced that it was planning to shutter at least 240 stores this year. At the time, it was reported that the company's global sales were down 11 percent from where they were two years ago just before the pandemic hit, with H&M warning that it had been heavily impacted by the spread of Omicron and extensive restrictions in some countries.
And just this month, Chico's revealed that it will be closing a total of 40 stores this year—both for its namesake stores and White House Black Market (WHBM), which was acquired by Chico's in 2003. An analysis from Market Screen said the closing stores are primarily "underperforming, mall-based Chico's and WHBM boutiques."
Unfortunately, those aren't the only closures you may be affected by.
Another popular clothing store is shuttering locations.
iStockBased on local reports, it appears that Banana Republic is gearing up to close at least two locations this month. The retailer's store at Commons at North Park in Midland, Texas, is one of the planned closures, the Midland Reporter-Telegram reported on June 13. According to the newspaper, a sign outside the store indicates that its last day of business will be June 23.
The other Banana Republic closing is located at the CF Polo Park mall in Winnipeg, Canada, the Winnipeg Free Press reported on June 14. The newspaper didn't give an exact date for this closure, but confirmed that it would occur sometime later this month.
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More Banana Republic stores will be closing by the end of next year.
iStockThese are likely not the only Banana Republican closures that will happen in the coming months. In Oct. 2020, Gap, Inc.—which has owned the Banana Republic company since 1983—announced that it was planning to close around 350 Gap and Banana Republic stores across North America by the end of 2023. This news came after the company previously confirmed plans to close more than 225 Gap and Banana Republic stores in 2020, Business Insider reported at the time.
According to the news outlet, there were 1,216 total Gap and Banana Republic locations in the U.S. and Canada in 2019. But by the end of 2023, there are expected to be 870 stores left. As of June 15, at least 103 Banana Republic stores have been shut down since the beginning of 2020, according to data from Gap.
The company is looking to move away from malls.
iStockBoth the soon-to-be shuttered Banana Republic stores in Midland and Winnipeg are located in shopping malls. In 2020, Gap confirmed that plans to close hundreds of its stores were part of an overall initiative to move away from malls. "As result of this work, our mall-based exposure will decline meaningfully," Katrina O'Connell, the chief financial officer for Gap, said during a meeting in 2020, per Business Insider.
A spokesperson from Gap told the Winnipeg Free Press that its closure was part of the company's work to increase online demand and review its real estate footprint. "We remain committed to making appropriate and timely decisions on stores that don’t fit our vision for the future of Gap Inc," they told the newspaper. By the end of 2023, Gap says its goal is to have a "smaller and healthier fleet of stores."
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