The past few years have created the perfect storm of instability for the retail landscape. In 2020, consumers flocked online to make their purchases amid COVID lockdowns, which severely affected in-store sales and even forced some retailers like Modell's Sporting Goods and Lord & Taylor to shutter all their brick-and-mortar locations. Even the big names that survived like CVS and H&M have been closing stores recently as part of increased efforts to focus more on digital growth. Now, record-high inflation could serve as another nail in the coffin for retailers who have been struggling to stay afloat. Recently, one popular clothing company revealed it would be closing stores this month while noting that business had "softened." Read on to find out what retailer is shuttering locations in August.
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Many clothing companies have been struggling.
ShutterstockClothing companies have had a particularly hard time the past few years, even with the growth of retail e-commerce. According to the U.S. Census Bureau's latest Annual Retail Trade Survey published in April 2022, sales at clothing and clothing accessories stores fell from $269.5 billion in 2019 to $201.4 billion in 2020. This occurred as the "the need for new clothes and accessories for the workplace or social outings waned."
Several clothing companies have closed stores as a result. In June, both Chico's and Banana Republic confirmed store closures throughout the U.S. And just last month, Loft, Fallas, and JCPenney all started shuttering locations around the country.
Now, another popular clothing chain is facing closures.
This clothing chain is closing stores soon.
iStockIf you're a frequent shopper at Dillard's, you might want to prepare yourself for the news that the clothing chain is shuttering locations.
According to Chain Store Age, the company announced in its second quarter report that at least two locations are set to close: the Dillard's at the Sikes Senter in Wichita Falls, Texas; and the Dillard's at the East Hills Shopping Center in St. Joseph, Missouri. "Both locations are expected to close during the third quarter," Dillard's said in an Aug. 11 report.
There have been conflicting reports around the closures of these Dillard's stores.
iStockFollowing conflicting reports from Dillard's, St. Joseph News-Press confirmed that the Dillard's Clearance in the East Hills Shopping Center would in fact be closing on Aug. 27, as indicated by a message on the store's phone line. According to the newspaper, the closure of this location was originally announced in April after the store's roof had been damaged in a March tornado, but in May, a statement had been released claiming the location would remain open.
The Wichita Falls Dillard's has also faced conflicting reports. On May 12, Texoma’s Homepage reported that a Dillard’s spokesperson confirmed the store would be closing sometime in 2022. Then just two weeks later, it was reported that Dillard's had canceled plans for the closure following agreements with the mall's new management. But like the Missouri Dillard's, the Texas Dillard's will indeed be closing on Aug. 27, according to Texoma’s Homepage.
Dillard's CEO recently said business has "softened."
iStockAccording to the recent report, Dillard's currently operates 250 stores and 29 clearance centers throughout 29 different states. The company is actually planning to open a new store in the fall of 2023, at the Empire Mall in Sioux Falls, South Dakota.
Nevertheless, Dillard's CEO William T. Dillard II said that while the company's "first half performance was far better than last year's," as net income increased by 21 percent, inflation has weakened business as consumers start to rein in their spending. "Business softened in the quarter," Dillard said in the report.
