Why Closing Stores Isn’t An Easy Fix For Retailers

by MR Magazine Staff

Analysts expect more retailers to announce store closings throughout the first few months of the year, as they digest the results from their holiday and fourth-quarter sales. That’s due, in part, to the fact that activist investors and others on Wall Street are growing increasingly impatient with retailers’ reluctance to close unprofitable stores. But while closing a store can help pad retailers’ bottom lines — and appease investors in the process — the decisions should not be taken lightly. Not only does closing a store result in lost sales — and often, erosion of market share to a competitor — it can be costly and complicated to exit a lease prematurely. Read more at CNBC.