4. Family Dollar (NYSE: FDO)
In late July, Dollar Tree announced the acquisition of Family Dollar Stores, which, it said at the time, could result in the closing of as many as 500 Family Dollar outlets. The strategic rationale for the acquisition was to combine “two established and respected brands in the most economically resilient sector of retailing,” Dollar Tree CEO Bob Sasser said in an earnings call. According to Sasser, “the Dollar Tree target customer is largely a suburban customer, while the Family Dollar customer is largely urban and rural.” Once the transaction closes, Sasser said, Dollar Tree would have more than 13,000 stores with almost $19 billion in sales and more than $2 billion in earnings. Shareholders of both companies approved the transaction in February.
5. JCPenney (NYSE: JCP)
In January, JCPenney stated it would close roughly 40 stores in 2015, resulting in approximately 2,250 layoffs. The company has floundered in recent years, due in large part to former CEO Ron Johnson’s tenure during which JCPenney was dramatically rebranded. The company is still recovering from the disastrous results of the shift. The current store closures can be attributed to other factors as well. While the rise of e-commerce has not had as severe an impact on J.C. Penney as other retailers, Americans’ growing preference for making online purchases has cut into mall traffic. According to Fortune Magazine, nearly 700 J.C. Penney stores are located in malls, more than every store except for Sears.
6. Macy’s (NYSE: M)
Macy’s announced early in January it would close 14 stores as part of a restructuring plan to increase online sales.The 14 closures involve less than 2% of the chain’s 830
stores. When the stores close in early spring more than 1,300 jobs will be lost. At the same time that it announced the closings, Macy’s also said it would open three new stores. The Department of Commerce reports a drop in department store sales from an average of $14.3 billion a month in 2013 to $14.0 billion per month in 2014, a decline of 2.1%. In the same period, sales by non-store retailers — mail order and e-commerce — rose from a monthly average of $37.3 billion in 2013 to $39.9 billion in 2014, an increase of 6.9%.