Even though the economy has been looking brighter, a number of retailers remain in a precarious position.
According to Douglas A. McIntyre, Samuel Weigley, Alexander E.M. Hess, and Michael B. Sauter (writing for 24/7 Wall), 8 retailers are likely to close the most stores in 2013: Best Buy, Sears Holding Corp., J.C. Penney, Office Depot, Barnes & Noble, GameStop, OfficeMax, and RadioShack:
“Several of America’s largest retailers have been battered for years. Most have been undermined by a combination of E-commerce competition, often from Amazon.com Inc. and more successful retailers in the same areas. Borders and Circuit City are two of the best examples of retailers that were destroyed by larger bricks-and-mortar competition and consumers transitioning to online shopping. These large, badly damaged retailers could not possibly keep their stores open.”
“Currently, the best example of a struggling retailer is J.C. Penney. The department store chain’s third-quarter  revenue dropped more than 26% year-over-year, and its same-store sales fell by about the same. With Penney’s E-commerce sales slipping by an ever greater amount, it was left with nowhere to go for bottom line improvement other than deep cost cuts.”
“Store closings can bring a retailer some relief and may not always portend its demise. Gap announced in 2011 it would shutter 21% of its U.S. store base. It has since transformed itself into a much more successful clothing retailer. As the retailer completes the process of downsizing, its store operations likely will become even more efficient and its margins greater.”
Click the image to read more about these 8 retailers.
Photo by REUTERS/Mike Blake/Files