Guess? Inc plans to shut down more than 100 stores worldwide, which is about 9% of its network, joining retailers across the world that are rethinking their store fleets as customers return to shops after the Covid-19 shutdown.
When excluding currency fluctuations, sales fell 50% in the company’s first quarter that ended May 2, largely due to prolonged store shutdowns during the virus outbreak.
Most retailers are wrestling with their store footprints as the impact of the pandemic disrupts spending patterns and speeds the shift toward online shopping.
Jared and Kay owner Signet Jewelers Ltd, J.C. Penney Co and Victoria’s Secret have all announced permanent store closures over the past month. As many as 25,000 stores are expected to shut this year, a record rate, according to Coresight Research.
Guess reduced expenses during the shutdown by furloughing all store workers and half its corporate workforce while laying off 150 employees at its Los Angeles headquarters.
Management also cut some salaries by as much as 70% and cancelled all capital expenditures that aren’t “mission critical.”
Alberini said not all of these stores would be closed since there are some that are “very, very healthy.”
The closures will be in North America and China over the next 18 months.
As of Feb 1, the company operated 1,169 stores, with partners operating an additional 560, according to a company filing.
Source : Bangkok Post