This year was a year of a new era in the fashion industry. It’s a year of awakening for the major players in the industry. To be successful, brands and companies will have to come to terms with the fact that the climate is changing and the old rules won’t be effective anymore . Due to the change in consumer demands, new developments of new retail strategies, new technologies been introduced, and the impact of social media, Brands and retailers need to be quick, fast and digitally competent to satisfy consumer. They will need to take a stance on social issues and movements, the demands of transparency, and sustainability. While many brands and Companies adapted and adjusted to this new paradigm, some are still stuck using the old ways and this has resulted in major losses.
Throughout this year, we’ve seen a lot of closures and companies filing for bankruptcy. Major retailers and brands in north America have filed for bankruptcy and store closures, such as HBC’s Hudson’s Bay and Lord and Taylor stores, Forever 21, Victoria secret, Nordstrom just to name a few. The amount of store closures this year 9,000 has increased compared to last year. According to a report by Coresight Research, it's predicted that this number could reach
12,000 by the end of the year. With the rise of e-commerce, investment bank firm USB analyst say more than 20,00 stores will close by 2026.
The end of brick and mortar stores coming to a close, a lot of stores are re-structuring and closing multiple locations. The stores that have had major closers this year, were at one time the coolest and trendy stores for a generation. These retailers shutting down the most stores in both U.S and Canada this year, looking at the retailers with the largest amount of store locations in both countries.
Forever21
Forever21 was once one of the fastest growing fast fashion retailers in north America. Early September, the company filed for chapter 11 bankruptcy and released a list of locations closing. The list shows the company will be closing 178 locations in the United states, most of its locations in Asia, Europe and all its Canadian locations. The past month, all 44 Canadian locations have been having crazy liquidation sales. This was a result of changing times, the company was one of the most popular retailers that produced unique and cost friendly merchandise. However, the company focused on expanding and acquiring more locations worldwide, its merchandise style got “cliched and cookie cutter”. The company lost touch with its core customers and companies like, fashion nova, H&M, Zara rose. Consumers are also more eco-conscious and want to support sustainable brands, which forever21 is not. By closing these locations, the brand plans on repositioning, itself in this new climate in the industry.
Hudson’s Bay Company
HBC the oldest company in north America, with various subsidiaries under its banner from the bay, Saks Fifth in the U.S. The company announced closures for most of its subsidiaries. Early this year it will be closing and its Lord and Taylor locations in the U.S. The company also shut down all its companies in Europe both The Hudson’s Bay Galleria Kaufhof and Saks in the united states. The company went private as a way to restructure its company’s portfolio and a way to reduce underperforming businesses.
Victoria Secret
Over the past year, Victoria’s secret has faced a serious decline in its popularity. The company has lost its touch and struggling to find its place in world where diversity, body positivity and originality matter more to consumers than its hyper-sexualized brand image. The company’s over sexualization of women and its lack of diversity in its models and merchandise are some factors that led to its decline. March of this year the company announced it would close 53 stores in North America, this increased from the 30 that was announced in 2018. From controversial comments from its previous chief executive, sexual misconduct issues and the cancellation of its infamous fashion show. The once widely popular brand is on its last legs, but with two new appointed CEO’s, the company might just turn the business around with the right strategy.
Throughout the past year, we’ve seen a lot of closures in the industry and this will continue into 2020. With the new consumer demands, development of new technology and the rise of social media and e-commerce, the future of brick and mortar is bleak, however retailers and brands must adapt to the new climate. It’s possible for retailers to be successful in today’s economic landscape, they must implement new ideas and connect to how modern and younger consumers shop. This year has been shaped by shifts in consumer shopping habits linked to technology, societal issues, and also the disruption from global political and. Economic events. Only brand that can accurately reflect this trend will emerge at the top as winners.
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