Source: Market Mad House
Macy's just announced that they're closing another 68 stores. The oldest apparel chain, The Limited, has closed its stores. Major retailers are shutting down their doors left and right, and JCPenney is the next to follow suit. The company's CEO Marvin Ellison made the announcement at a recent real estate conference in Dallas, stating that "the company is planning to close some of its 1,014 stores soon," according to Dallas News.
Although Ellison understands that closing stores will result in job losses, particular locations in smaller markets are unable to meet JCPenney's brand standards and need to close. On the upside, Ellison predicts that JCPenney's online sales will grow more than 20% in the upcoming years, all thanks to the increased use of mobile technology by consumers.
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Source: The Krazy Coupon Lady
It is also noted that the physical locations still play an essential role in maintaining the company since shipping costs are high and ship-to-store options are favored among the company and shoppers. It's a relatively new option that was only added last year, but it alleviates costs for both parties.
Moreover, 40% of customers who enter the store to pick up or return an online order also buy something during their visit. 92% of their shoppers make returns in store, and those who make a return are likely to spend twice as much on another item.
How do you feel about retailers closing down their brick and mortar locations? Did you expect this since online shopping has been on the rise for years? Tell us in the comments below!