The rise of online shopping is slowly but surely causing the demise of the shopping mall. Unfortunately, the trouble is starting to spread to other retailers as well. We’ve seen so many stores close recently. And, sadly, it’s not over yet. With that said here are ten retailers that might see their demise in 2019.
10. Rite Aid
You may remember that we told you a while back that Walgreens, as part of its $4.4 billion deal to buy more than 1,900 Rite Aid stores and three distribution centers, announced plans last October to close 600 stores starting Spring 2018 and continuing over 18 months. Well, now Rite Aid could end up closing its stores as well. According to an article published by MSN, Rite Aid stock has steadily dwindled since regulators blocked its acquisition by Walgreens in 2017. In fact, the drugstore chain was forced to do a reverse split in April to stay in compliance with the New York Stock Exchange. And, that’s not all. The company’s first-quarter report showed an expected net loss of $170-$220 million for the current fiscal year. Plus, the drugstore chain currently has $3.6 billion in debt.
9. Stage Stores
Stage Stores, the parent company of Peebles, Bealls, Palais Royal, Goody’s and Gordmans, got a delisting warning from the New York Stock Exchange earlier this year. According to BizJournals.com, the Houston-based company is no longer in compliance with the continued listing standard because its 30-day average closing price dipped under $1 per share. Stage Stores’ stock dipped down to 73 cents per share in January and made its way back up to 95.82 cents per share in February. While it’s uncertain what, if anything, Stage Stores has done to address the noncompliance issue, it should be noted that the store’s stock closed above $1 per share almost every day from mid-February to early June. Unfortunately, it has been steadily inching down and closed at 73 cents per share on July 22.
8. Payless ShoeSource
Ok, so not that long ago we told you Payless announced early last year that it would restructure by eliminating some of the layers between its retail locations and corporate headquarters, i.e. close some of its stores. Well, their restructuring plan didn’t turn out so well, and in February, management said it would close all of its stores by the end of June.
Once the nation’s largest footwear chain, the store, like many other mall stores, has suffered due to unsustainable debt and declining mall traffic.
FYI, you can still shop for Payless shoes online. “In February 2019, our company made the difficult decision to shut down our stores and e-commerece operations… Going forward, we will continue to offer your favorite Payless products through Amazon,” the company said on its website.