Popular Clothing Chains Including Old Navy and Macy's Are Closing Stores, Starting in January
If you get your apparel at these clothes retailers, you could be affected.
Select shoppers might have trouble refreshing their wardrobe in the new year. While store closures have been all-too-common across the country since the start of the pandemic, companies aren't going to stop reducing their retail footprints anytime soon. Now, some of the most popular clothing chains, including Old Navy and Macy's, have confirmed that they're getting rid of certain locations in 2023. Read on to find out where stores are shuttering, starting in January.
Old Navy is closing a store in January.
Old Navy will be down a store in the new year. The company is set to close its location at the Uptown Solon Shopping Center in Solon, Ohio next month, the Cleveland Jewish News reported on Dec. 13.
Mark Swerling, director of asset management at United Growth, the current owner of the shopping center, told the newspaper that the closure is based on a few different factors, including an expiring lease and the location's close proximity to other Old Navy stores in Northeast Ohio.
"For years now, we had heard rumors [about a closure] but we're obviously disappointed that they are closing," Solon Mayor Edward Kraus told the Cleveland Jewish News. "It's a sign of the times. We're not sure what they're going through as a company, but I could imagine that they're having the same downturns as everyone else. With the advent of online retail and everything getting shipped right to your house, it is affecting a lot of brick-and-mortar stores. This is a perfect example of that."
Best Life reached out to Old Navy to see if an exact date has been set for the store closure, but has not yet heard back.
Another popular chain is shuttering stores next month.
A different well-known chain—which sells clothes among many other things—is planning to pare down in January. Based on local news reports, it seems that Big Lots is set to close at least two locations in California next month.
A spokesperson for the company confirmed that its store in Ridgecrest, California, will close permanently in the new year, The Ridgecrest Daily Independent reported on Dec. 14.
Joshua Chaney, Big Lots public representative, told the newspaper that the owner of the building recently informed the company the rental price would be three times higher going forward.
"We review our store portfolio on an ongoing basis and sometimes decide, for a variety of business reasons, to close or relocate," Chaney said. "We are grateful to all our customers for shopping with us over the years and invite them to continue shopping with us online at biglots.com."
And that's not the only California location closing. On Dec. 7, Chaney confirmed to the Sacramento Business Journal that the Big Lots store in Citrus Heights, California, is also set to close in January—providing the same store portfolio review explanation.
Best Life reached out to Big Lots to see if an exact date has been set for either store closure, but has not yet heard back.
Macy's is also losing a location in 2023.
Following the Old Navy and Big Lots closures in January, Macy's will also be paring down slightly. The department store chain is set to shutter its store at the Foothills shopping mall in Fort Collins, Colorado, next year, The Coloradoan reported on Dec. 12.
Stenn Parton, president of Prism Places, which currently owns the mall, confirmed to the newspaper that the Fort Collins Macy's will permanently close its doors in March 2023.
Macy's has been in the Foothills shopping mall for nearly 50 years and is the center's last remaining department store, according to The Coloradoan. Parton said that Macy's is planning to close the store altogether, not relocate, and told the newspaper that the mall will undergo a redevelopment plan as a result.
"That's the dichotomy of retail today," he said. "A lot of these department stores propped up these projects [malls] for long time."
Best Life reached out to Macy's for more information on the closure, but has not yet heard back.
These companies are undergoing mass closures.
While these are just the announced store closures for the new year, all three companies are in the middle of nationwide shutdowns.
Back in Feb. 2020, Macy's announced that it was planning to shutter a total of 125 of its department stores through 2023. "We are taking the organization through significant structural change to lower costs, bring teams closer together and reduce duplicative work," Macy's CEO Jeff Gennette told CNBC in a statement at the time.
For its part, Gap Inc., which owns Old Navy, previously announced mass closures for some of its other brands. In Oct. 2020, the chain's parent company revealed that it is planning to close 350 Gap and Banana Republic stores across North America by the end of 2023.
"As we adapt to the current market conditions and meet the increase in online demand, we are looking thoughtfully at our real estate to support the best path forward," Gap Inc. states on its website, adding that the closures are being made "with the goal of having a smaller and healthier fleet of stores."
Most recently, Big Lots also revealed plans for mass shutdowns. During a Dec. 1 earnings call, Jonathan Ramsden, executive vice president, CFO, and administrative officer for Big Lots, stated that the retailer has "an accelerated number of closures" planned. According to Ramsden, the closures are intended to help Big Lots increase revenue.
"The closures this year will end up being somewhat higher than the openings," he said. "Going forward, we would hope and expect to return to a normalized level of closures, but we'll certainly continue to look closely at underperforming stores."