Retail

Express Closes 100 Stores, Goes Bankrupt

Douglas A. McIntyre

Published: April 23, 2024 6:40 am

The operator of Express, Express Factory Outlets, Bonobos, and UpWest stores has filed Chapter 11. It will close 95 Express locations and all of its UpWest locations, leaving it with about 400 locations. It joins a long line of struggling retailers, including Macy’s, which has recently shuttered locations.

Reuters states, “Launched in 1980, Express has been battling with soft consumer demand due to slowing spending patterns and increased price sensitivity in discretionary categories.” While several retailers have been forced to cut back, America’s malls are still filled with tens of thousands of Macy’s, JCPenney, Gap, Dillard’s, Target, and Kohl locations. And that does not include niche operators like Urban Outfitters and Lululemon Athletica. (Where are the only 12 remaining Sears stores in America?)

Companies like Express must also compete with Walmart. Although Walmart generally does not operate in malls, it has over 4,500 stores.

The most significant competition to all brick-and-mortar retailers remains the overwhelming presence of Amazon. It is still America’s second-largest retailer, behind only Walmart. However, because it has so few stores, it has the advantage of paying no rent and almost no money for staff in physical locations.

Retailers like Express simply have too few stores and are overwhelmed by larger rivals.

∴