Luxury retailer Jimmy Choo puts itself up for sale

Nathan Bomey

USA TODAY

British fashion chain Jimmy Choo said it was considering selling itself, among other moves, adding another company to the list of luxury retailers headed for a shakeup.

Jimmy Choo said it would consider "various strategic options," which comes as the luxury segment grapples with sluggish sales. Upscale retailer Kate Spade recently declared that it would consider similar options, likely including a possible sale.

Jimmy Choo's largest shareholder, JAB Luxury, which owns 66.7% of the company's shares, said it "is supportive of this process."

The seller of high-end shoes, handbags and accessories also reported Monday that sales at stores open at least a year fell 0.8% in 2016 after increasing 1.1% in 2015 and 5.7% in 2014.

To be sure, the company enjoyed a 14.5% revenue bump in 2016 to 364 million pounds, or $465.5 million. And operating profit rose 42.6% to 42.5 million pounds, or $54.4 million.

But when taking out favorable currency fluctuations fueled by the United Kingdom's vote to exit the European Union, revenue increased only 1.6%. The company is targeting China for growth and is renovating some stores to adopt a new format that it says has jolted sales.

Jimmy Choo CEO Pierre Denis said in the company's annual report Monday that he saw"improving retail trends across all regions" despite "increased geopolitical uncertainty."

In the U.S., however, deteriorating demand from department stores is undermining sales. Excluding currency rates, sales in the company's Americas division plunged 13% in 2016.

Jimmy Choo had 150 company-owned stores worldwide and 64 franchised stores as of December 31, and planned to open about 10 locations in 2017.

Jimmy Choo's stock rose 11% to close at 186.50 pounds in London on Monday.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.

Kohl's says it's no longer a department store - CNN

New York (CNN Business) Kohl's is under intense pressure from Wall Street raiders and up against stiff competition from Amazon, Target and others. Now it's hoping that overhauling its brand image can beat back those threats.

Kohl's KSS announced plans Monday to add Sephora mini-shops to roughly 75% of its 1,100 US stores, open 100 new locations at half the size of its traditional outlets in the next four years and increase its popular Kohl's Cash rewards program to 7.5% on purchases, up from 5%. Kohl's also unveiled new strategies to grow online, including self-service for pickup orders and returns.

The approaches are part of a larger attempt to change how consumers see the Kohl's brand amid a department store sector that's been in decline for years. Traditional chains such as Sears, JCPenney and others have been forced into bankruptcy, prompting Kohl's to search for new ways to connect with shoppers.

Kohl's has lost 17% of its market share since 2011, primarily to discount stores such as TJ Maxx, Amazon and rival clothing brands, according to UBS analyst Jay Sole.

"We're evolving our position from a department store to a more focused lifestyle concept centered around the active and casual lifestyle," Kohl's CEO Michelle Gass said in a presentation to investors Monday.

Read More

Charlotte Russe store closings: Bankrupt retailer shuttering stores

The demise of another national retailer will cost the Oakdale Mall in Johnson City and the Arnot Mall in Big Flats two more storefronts.

Charlotte Russe will close all of its stores and is in negotiations to sell its intellectual property, the company confirmed Wednesday.

“We are partnering with the buyer and remain in talks to sell the (intellectual property), are optimistic about the future of the brand, and remain in ongoing negotiations with a buyer who has expressed interest in a continued brick and mortar presence to continue to serve our loyal customers in the future,” the fashion retailer said in a statement to USA TODAY.

In a court hearing in Wilmington, Delaware, on Wednesday, Judge Laurie Selber Silverstein approved the sale of Charlotte Russe's assets to SB360 Capital Partners LLC, a liquidation company.

According to court documents, store liquidation sales "shall commence no later than March 7" and end "no later than April 30."

Like with other liquidation sales, all sales are final.

Charlotte Russe has outlets at local malls in Johnson City and Big Flats, in addition to stores at Destiny USA in Syracuse, and the Viewmont Mall in Scranton. The closing represents yet another blow to the mall environment, particularly the local ones where the so-called "retail apocalypse" has been especially troublesome.

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SB360 Capital Partners, describes itself on its website as "one of the oldest, most experienced companies in the country conducting Store Closing and Going Out of Business Sales." It's an affiliate of the Schottenstein family, which also owns DSW Inc. and American Eagle Outfitters.

Charlotte Russe Holdings had been teetering on the edge of bankruptcy for some time, having announced a deal to renegotiate certain debts more than a year ago.

The San Diego-based mall chain filed for Chapter 11 bankruptcy protection in early February and outlined plans to close 94 stores. The chain also put itself up for sale and said if it didn't find a buyer it would liquidate.

The company, which also controls Peek children's clothing stores, caters its items toward women's fashion and has more than 500 stores in 49 states and Puerto Rico. In its filing, the company said it had received a bankruptcy financing package worth up to $50 million to help it continue operating.

The bankruptcy marks the latest in a series of similar cases among mall retailers that have been unable to identify a sustainable path amid declining foot traffic and intense digital competition.

The company has more than 8,700 employees.

Follow Kelly Tyko on Twitter: @KellyTyko

How Kohl's became such a mess - CNN

New York (CNN Business) In 2018, Kohl's was a bright spot in the beleaguered department store sector.

Sales were growing,stock price was booming and new CEO Michelle Gass was earning widespread praise for her creative approach , including partnering withto offer free Amazon returns at Kohl's stores.

Out of the three largest US department store chains — Kohl's,and— Kohl's looked to be in the strongest position.

Not anymore. Kohl's is in turmoil today.

The chain's sales are lower than before the pandemic, despite strong consumer spending and as its rivals enjoy big gains. Activist investors are circling Kohl's and demanding leadership changes. A sale of the company could be on the horizon.

"We see a company that's lost its way," said Jonathan Duskin, managing partner at Macellum Advisors, an activist investment firm that has become Kohl's third largest shareholder.

Kohl's is under heavy pressure from investors and retail rivals.

Macellum and a group of activist investors took a stake in Kohl's last year. The group reached a settlement with Kohl's in April, but Macellum has recently revived its effort to overhaul Kohl's because of continued stock price weakness and market share losses.

Kohl's "should be doing better than Macy's, not worse," Duskin said. "We see a lot of initiatives that sound okay, but never really result in growth."

In a statement, a Kohl's spokesperson blasted Macellum, saying the firm was "using a misinformed, shifting and hollow narrative" to push for changes that would not improve Kohl's and result in "poorly qualified and inexperienced" board directors.

The spokesperson said Kohl's has made "substantial progress in transforming our business and positioning the Company for long-term success."

"We are already delivering results," the spokesperson added, pointing to the company's record earnings in 2021, operating profit margins reached two years ahead of schedule and an increase in the company's quarterly dividend.

Kohl's is attempting yet another makeover to turn things around, but its success is far from guaranteed.

Fighting the tide

With more than 1,100 US stores and around $19 billion in annual sales, Kohl's is the largest department store chain in the United States.

Walmart WMT Target TGT The department store sector has been in structural decline for years against pressure from Amazon, growing big-box chains includingand, and discount clothing stores like TJMaxx. Companies such as Sears, JCPenney, Neiman Marcus, Barney's and others have filed for bankruptcy in recent years.

Department stores including Kohl's have been undercut on prices by discount players from the bottom, and prestige by luxury stores at the top, said John Fisher, a senior lecturer at Boston College's Carroll School of Management and former CEO of Saucony running shoes.

"It's hard to be unique," Fisher said. "I think Kohl's is caught right now by death in the middle."

Kohl's CEO Michelle Gass has been considered one of the most innovative executives in retail.

TJMaxx TJX Kohl's has lost around 17% of its market share since 2011, primarily to off-price retailers such as, as well as Amazon, according to UBS.

"[F]orces like consumers' migration to online and preference for value have contributed to this erosion," UBS analyst Jay Sole said in a recent report. "This will likely continue after the pandemic."

Starbucks SBUX Since Gass, a former top deputy to Howard Schultz at, took over as Kohl's CEO in 2018, the company has attempted a handful of approaches to draw customers and stave off competitors.

Nike NKE Under Armour UA In addition to the returns partnership with Amazon, Kohl's expanded its athleisure clothing business with brands such asand. Kohl's also shrunk the size of a handful of stores and leased out the extra space to Aldi and Planet Fitness, made a bigger play for Millennials with new brands such as PopSugar and, more recently, opened Sephora beauty stores inside Kohl's.

These strategies have not led to major improvements. Kohl's has improved its athleisure business and other areas, but its women's clothing business has slumped.

In 2018, sales inched up 0.7% from the prior year. In 2019, they dropped 1.2% before plunging 20% in 2020 due to store closures and Covid-19 restrictions.

Last year, after stores reopened and shoppers refreshed their wardrobes, sales bounced back 23% — but that was still below pre-pandemic levels.

Competition has become more cutthroat in the four years since Gass took over, and "a lot of Kohl's stores feel tired," said Neil Saunders, managing director of retail at GlobalData. "It has been very easy for customers to switch away from Kohl's to others offering something better."

And brand partnerships with Amazon and Sephora do not address core issues, he added. "Kohl's needs to look to improving its own brand rather than relying on others to lift it."

A sale looming?

Over the last few months, activist investors have been pressing for changes at Kohl's.

One firm, Engine Capital, urged Kohl's to spin off its e-commerce business from its stores or find a buyer to take the company private. "Even the most patient long-term shareholders cannot be expected to endure the punishing underperformance and perpetual value disconnect seen at Kohl's," Engine Capital said in December.

A month later, Macellum Advisors said it would nominate a slate of new board members at Kohl's because Kohl's board and leadership "spent another year materially mismanaging the business." Private equity firms also made buyout offers for Kohl's, which the company rejected

To fight off pressure, Kohl's last week laid out plans for a "complete reinvention of our business model and our brand" at an investor day.

Kohl's said it would add Sephora mini-shops to roughly 75% of its 1,100 US stores, open 100 new locations at half the size of its traditional outlets in the next four years and increase its popular Kohl's Cash rewards program to 7.5% on purchases, up from 5%. Kohl's also unveiled new strategies to grow online, including self-service for pickup orders and returns.

"We're evolving our position from a department store to a more focused lifestyle concept centered around the active and casual lifestyle," Gass said in a presentation.

But to Duskin at Macellum Advisors, the plan was "disappointing."

He believes the strategy won't meaningfully change how consumers see Kohl's — and he says it's time for a new board and, possibly, a new CEO. Kohl's has not fully taken advantage of its stores being located away from traditional malls, which are losing foot traffic, he said, and he questions whether the investment in Sephora is worth the cost.

Kohl's said last week that it has engaged with more than 20 potential buyers for the company, a sign of wide interest. Hudson's Bay Co., the owner of Saks Fifth Avenue, also is considering a bid, Axios reported Wednesday.

Kohl's board has an "ongoing dialogue with potential bidders" and will measure any offers against its own "compelling standalone plan," a spokesperson said.

Duskin expects Kohl's to accept a buyout offer, he said. "This company can easily be turned around."

How the supply chain is affecting what you can buy at grocery stores

On any given week, Cleo's Bodega Grocery & Café, a small-scale market on Doctor MLK Jr Street, could have difficulty getting a specific food item, thanks to the supply chain issues.

"It's not necessarily about products getting to us slower," said Sibeko Jywanza, director of food justice at Flanner House. "It's whether or not they are available at all."

Recently, it's been Atlantic salmon and shrimp. The store also found that certain varieties of Lunchables, ready-to-eat meals popular with kids, are hard to get. And Jywanza said the store competed against bigger stores and nonprofits to get turkeys and Cornish hens for Thanksgiving.

Revisit:What to expect from Indiana's economy in 2022

Anecdotes about so-called food shortages and empty grocery store shelves dominated headlines in recent months. While not as extreme, jams in the food supply chain are all too real for some local markets like Cleo's Bodega which has learned to be flexible in finding ways to get food products to customers.

Jywanza's department oversees the bodega, a small grocery store and café that opened in 2019. Even before the pandemic, the store found itself competing against larger grocers for items.

Supply chain constraints have exacerbated the problem. For instance, Jywanza said distributors sometimes have a certain quantity of products for order; but large-scale major-market grocery stores may buy up all the units before Cleo's can make an order.

"Something might not be available one week or the next because it's all gone," he said, adding that a product shortage affects Cleo's harder than it would bigger stores selling a wider variety of brands. "If we're only limited to getting one particular brand of that particular item, it just limits how many things that we could put on our shelves."

How COVID impacted the food supply chain

National organizations representing large and independent grocers say there's plenty of food in the supply chain. However, demand issues on the supply-side are impacting what consumers can serve for breakfast, lunch or dinner.

The food supply chain has three key components: production, involving farmers and ranchers; processing, involving manufacturers; and retail. Each part of the chain contributes to the price of food, which can also be influenced by outside factors such as trade and weather.

On its website, the Food Industry Association, also known as FMI, notes that cost increased at every stage of the food supply chain during the pandemic.

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At the beginning, many restaurants closed as communities sought to contain the spread of the coronavirus. As a result, ranchers and growers lost one of their buyer channels making it costly to harvest, produce and store raw and intermediate food. Meanwhile, more Americans began cooking at home, increasing their demand for grocery products. .

"Grocery shopper demand doubled overnight, and now, the demand pressures we felt in March 2020 have not returned to pre-pandemic levels," FMI said via email.

The average household spent $161 on groceries at the height of the pandemic, compared to $113 in 2019, the association notes. Though spending has decreased, it's held steady at $144 per week since then.

"You still see a lot of people who are eating at home much more than they used to, who are eating more meals a day at home, and so there's a lot of demand for products," Andy Harig, FMI's vice president of tax, trade sustainability and policy development, told IndyStar in a telephone interview.

When asked about supply constraints, Ohio-based Kroger, which has at least 49 stores across the Indianapolis area, deferred to comments CEO Rodney McMullen made during the company's Q3 earnings call with analysts.

McMullen said Kroger customers continued to eat at home because it was more affordable, convenient and healthier.

Explore:Kroger opens its first new Indiana store since 2017 in Brownsburg

"We also saw them continuing to cook at home leading up to and during the holiday and select more premium products to elevate the food experience," he said. "These are all reasons why we believe the food at home change is structural and not temporary."

While consumer demand for food to cook at home remains high, labor shortages, increases on input costs —the price to create a product — and other COVID-related expenses are contributing to supply chain issues and creating conditions that make certain products harder to get.

Production and processing costs increased during the pandemic as companies adapted plexiglass barriers and frequent sanitization as safeguards to protect products from contamination.

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Labor costs are up as companies offer higher wages to entice workers. Industry experts says fewer truckers are available to help move product and a backlog at US ports are contributed to slowing the delivery of imports.

Harig said the system cannot move product along fast enough to consistently meet consumer demand at stores.

"We see these kind of issues playing out where you have that sort of perfect storm," he said.

Like 'Black Friday'

It can be difficult explaining the supply chain and the grocery business to customers — especially if an item is for sale one week and not the next, or consistently available for several weeks before disappearing.

Still, Cleo's tries, Jywanza said. If a product is not available, apologies are given and offers are extended for customers to check again in the next week.

"The essentials and the basics are what we try to do as a small scale store, and yeah those are the things that people are always looking for," Jywanza said. "Those are also the things that people are always getting from other stores."

Revisit:How supply chain disruptions will affect Black Friday shopping

Harig notes a manufacturer may scale back on their product offering if they don't have enough of an item such as a imported spice they are waiting to arrive from overseas.

Food demand is regional, making it harder to determine where product shortages are occurring. How quickly a product can get to grocery shelves depends on where it's going and how long it takes to get there.

And, as Harig explains typically it's a piece of a product — rather than the entire product — that gets jammed in the supply chain. Ingredients in processed or frozen foods are more likely to be snagged by the slower movement through the chain.

"A lot of our spices, things like cinnamon or cardamom, they come from overseas," he said. "You also have a lot of packaging that comes from overseas. Sometimes that can be the challenge too. Whether that's a milk carton, or if it's a bubble pack on something like a frozen pizza, you have to make sure that that's available as well."

Harig advises consumers to buy what they need and want. Still, he said they should feel confident enough to resist the urge to stockpile products.

McMullen told analysts Kroger had planned for today's supply chain constraints this past spring.

"We kept the additional warehouses originally brought on to support business or COVID to ensure we were able to provide for customers throughout the holiday season as well," he said, adding that the chain leverage what it learned from the pandemic and the chain has its own fleet to transport products. "Because of our team's agility, we are better in stock today than we were a year ago."

Supply chain jams can hinder sales for businesses like Cleo's Bogeda. Jywanza said customers seeking a specific item are more likely to leave without purchasing something else if they don't find what they're looking for.

And, customers aren't always forgiving — especially if they leave feeling like they've wasted a trip to the store or dinner plans go awry.

"If we don't have other brands of that particular item available — some people don't want to switch brands, but they will get it if they're looking for that — if they walk out and go somewhere else their comfort and their confidence in that store will decrease," he said. "They will build more confidence in the store that they went to that either, they got their particular item or had the off-brand."

More:Fact check: Supply chain delays not related to COVID-19 vaccine mandates

To be fair, Jywanza said this is an issue Cleo's has always had to deal with, given its size. The bodega switched distributors in September 2020. It doesn't have the ability to stockpile like bigger stores given its space and storage limitations.

Cleo's opened more than two years ago at Flanner House, a nonprofit social services center, to make fresh, healthy foods available to the Dr MLK Jr. Street corridor on near northwest side. The stores sells produce, meat and dried goods.

Jywanza said Cleo's is getting better at figuring out which products it can order week to week.

The store has learned to be flexible in how it gets products, such as sourcing from different vendors or possibly linking up with other smaller grocers to negotiate an exchange.

"When it time to do your inventory, you pretty much have to almost be like you're Black Friday shopping or something like that and be the first person to kind of get to it," he said jokingly.

The impact on food prices

In addition to inflation, the confluence of factors impacting the supply chain contribute to the prices consumers pay at check out.

Recent data from the Department of Labor reflects a 7.1% increase in food prices across the Midwest for the 12-month period ending in November, as determined by the Consumer Price Index which measures the change in retail prices.

Read more:How inflation is affecting your wallet in Indiana

"A change of $1 or 2 can make a difference on a product," Jywanza said.

Beef and pork prices are up. And, Harig said input prices — wheat and corn for feed and fertilizer prices for produce — also have increased.

During the earnings call, Kroger CFO Gary Millerchip said Kroger saw higher product cost inflation in most categories during the third quarter. Kroger said it passes along prices to the customer where it makes sense.

In a statement, the Washington D.C.-based National Grocers Association said via email that independent grocers and their wholesalers are working closely with suppliers to keep prices as steady as possible.

Price inflation is driven by a perfect storm of factors including an ongoing shortage of labor across the entire supply chain, acute shortage of truck drivers, increased ingredient inputs and occasional disruptions in product packaging production, the association said.

"As costs rise from producers and the supply chain, our members are following the same pricing structures and policies that they always have," the association said. "While there is plenty of food in the supply chain, we anticipate consumers will continue to experience sporadic disruptions in certain product categories as we have seen over the past year and half due to the ongoing supply and labor challenges."

Looking ahead

Economists expect supply chain issues to continue into the first quarter of 2022, but they don't expect the supply side issues to be permanent.

"We have to get through COVID," Harig said. "We have to get sort of back on a path where people feel there's a little bit more more normalcy."

He expects supply chains to even out in the second or third quarter.

For Cleo's, the uncertainty makes it hard to strategize.

"If things aren't there, things aren't there," Jywanza said. There's not really anything that you can do about that except for trying to have alternatives for people to get."

He's seeking to do just that.

Jywanza expects the competition for products to remain fierce as bigger stores have greater buying power and can leverage their relationships with suppliers.

"The big whale gets gets most of the fish, right?" Jywanza said.

Contact IndyStar reporter Alexandria Burris at aburris@gannett.com or call 317-617-2690. Follow her on Twitter: @allyburris.

Nordstrom could go private as department stores struggle

Nathan Bomey

USA TODAY

The Nordstrom family is exploring a bid to acquire the department-store chain that bears their family name in a deal that would turn the publicly traded company into a private venture to help it navigate the turmoil that has engulfed the retail industry.

The luxury department-store retailer said Thursday that several members of the Nordstrom family, including multiple company executives, had formed a group to weigh the potential deal.

The prospect of a deal drove Nordstrom stock up 10.3%, closing at $44.63, up $4.15 a share, for the day.

The possible shakeup comes amid a period of upheaval for department stores, which are facing declining mall traffic as shoppers increasingly buy more merchandise online for home delivery. Some of the nation's best-known chains, including Sears and J.C. Penney, have announced hundreds of store closures in recent months.

Meanwhile, the luxury retail sector is also facing obstacles connected to the strong U.S. dollar, which is curbing tourist spending.

Nordstrom first offered its shares to the public in 1971, and sales exceeded $100 million two years later. In the fiscal year ended Jan. 28, Nordstrom's sales were about $14.5 billion, up 2.9%. Net earnings fell 41% to $354 million. Seattle-based Nordstrom has 122 full-line department stores in North America and 221 Nordstrom Rack stores, which are geared toward Millennials and people seeking high-quality discounted merchandise. About 23% of the company's business is online, which is up from 5% a decade ago but still puts the company at significant risk as shoppers lose interest in the department-store experience.

The prospect of Nordstrom going private represents an acknowledgment that the chain known for outstanding, personal service, although profitable and more stable than much of the department-store sector, must reinvent itself. Escaping the wrath of shareholders who demand strong quarterly results is a major benefit of private ownership.

"There’s no doubt that retail will be, for the foreseeable future, undergoing dramatic transformation, and that's very difficult to do in a publicly traded environment," said Greg Portell, lead partner in the retail practice of consulting firm A.T. Kearney. "It's not unlike being an awkward teenager: Nobody enjoys their teenage years because everything’s changing, and to do that in the public eye is very difficult and in many ways counterproductive."

U.S. department-store sales fell 37.8% to $156.9 billion from 2006 to 2016, according to retail trade publication The Robin Report.

Other ailing retailers should consider going private so that they can invest the capital necessary to overhaul their business model, he said.

Former Nordstrom executive Kathy Gersch, executive vice president of consultancy Kotter International, said the chain could benefit from going private as long as the Nordstrom family members pay attention to what outsiders are telling them. Nordstrom family members considering the potential deal collectively hold about 31% of the company's stock, according to CFRA Research, and they're seeking to acquire the rest of the shares.

"Even though it’s public, it’s a family business," Gersch said. "They view it that way."

In going public, Nordstrom would further reduce the number of publicly traded U.S. companies. Many corporations, seeking a shield from quarterly profit demands and regulatory scrutiny, are spurning the public market. At last count, there were 3,599 in the Wilshire 5000 Total Market Index, which tracks all stocks actively traded in America. That's down more than 50% from the 1997 peak of 7,459.

Nordstrom stores are performing well in apparel but poorly in accessories, while benefiting from a buy-online, pick-up-in-store strategy, which has helped lift retail chains such as Best Buy. But foot traffic to slumping malls are taking a toll.

"We don't have great traffic numbers," James Nordstrom, the company's president of stores, told analysts in May. "It's been down."

The company had suffered a serious setback after a disappointing first-quarter earnings report last month, which caused its stock to lose nearly a fifth of its value. Sales at Nordstrom stores open at least a year fell 0.8% during the period.

Though the company projected flat same-store sales for the current fiscal year, CFRA Research analyst Efraim Levy estimated sales would be "slightly down."

Nordstrom said Thursday that it had formed a special committee of independent directors and hired legal and financial advisers to evaluate the possible deal.

The family members considering the bid are Co-Presidents Blake Nordstrom, Peter E. Nordstrom and Erik Nordstrom; President of Stores James Nordstrom; Chairman Emeritus Bruce Nordstrom; and Anne Gittinger.

Their ancestor, John W. Nordstrom, and Seattle shoemaker Carl Wallin jointly opened the Wallin & Nordstrom shoe store in 1901. After evolving and growing into a nationwide independent shoe chain, the company that became known as Nordstrom started selling women's clothing in 1963.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.

Department stores become endangered as Sears, Macy's struggle

Charisse Jones

USA TODAY

Sears is closing 150 stores and selling its vaunted Craftsman tool brand, but those steps may not be enough to stop the unraveling of the American icon.

With Sears' announcement Thursday coming only a day after rival Macy's saying it would close 68 locations, the department store concept itself is looking like an endangered species. In a retail landscape now dominated by online sellers like Amazon and big-box chains like Walmart and Home Depot, Sears finds itself in a search for a reason to exist.

"The brand has lost relevance, it’s lost customers and it’s lost its real reason for existence on the American retail scene,'' says Neil Saunders, CEO of Conlumino, a retail consulting firm. Following "the trajectory they're on, there are no real signs of them turning it around to profitability.''

Is your local Sears or Kmart among 150 stores to be axed? See the list

Sears has more than 1,300 stores remaining in its portfolio, so its demise could be prolonged. But if the retailer is unable to stem its financial bleeding and is forced into bankruptcy or perhaps a final assets sale, its loss would be akin to that of dominating American companies like airline Pan Am or five-and dime F.W. Woolworth.

"I honestly don’t see a spot for Sears long-term," says Van Conway, CEO of Van Conway & Partners, who has advised retail companies and other businesses on reorganization and insolvency. "My mom shopped at Sears. That was the only place she could go. Now you have 50 choices, and Sears is outdated.’’

Founded in 1886, Sears launched its first large, general catalog a decade later and for generations was the go-to source for products ranging from watches to washing machines. Though it lost its place as the nation's biggest retailer to Walmart in the 1990s, Sears enjoyed a renaissance during that decade under the helm of then-CEO Arthur Martinez, who pushed a greater focus on apparel sales and other initiatives.

The company faltered in the 2000s, selling its more than $30 billion credit portfolio to Citibank in 2003 and merging the Sears brand with Kmart, another struggling big box chain.

Macy's is closing these 68 stores: Is yours on the list?

CEO Edward Lampert, a hedge fund manager who shepherded the Sears tie-up with Kmart, initiated his own turnaround strategy, loaning the company cash, spinning off parts of the business and putting Sears' Kenmore, Diehard and Craftsman brands up for sale.

Sears' travails are part of a broader struggle that has engulfed many traditional retailers trying to compete in an environment in which consumers can buy virtually any item by browsing online and without setting foot in a store.

Expect more store closings despite big holiday sales

"One thing people used to use department stores for was wide choice and selection,'' Saunders says. "There's no wider choice than on the Internet, so a lot of the reasons for going to those department stores just doesn't exist the way it once did.''

In addition to Sears, many retailers, including Kohl's and JCPenney, have failed to innovate in ways that will continue to woo shoppers. “We're seeing now in retail a lot of legacy players that are dead, dying or in danger of dying because of their inability to do that,'' says Mark Cohen, director of retail studies at Columbia Business School, who is the former CEO of Sears Canada.

The flurry of steps taken in recent days by Sears is a stark illustration of the moves it is making to try to survive. In addition to the store closures, Sears announced Wednesday that it had obtained a $500 million loan commitment backed by mortgages on 46 properties belonging to its subsidiaries. That adds to its long-term debt, which had ballooned from $2.2 billion at the end of January 2016 to $3.7 billion at the end of October.

"From what I can see, these are very intelligent financial maneuvers to raise money,’’ says Conway. “But the whole issue is, is the core business of the retailer viable?"

JCPenney store closings 2020 list: Liquidation sale to start soon

J.C. Penney on Thursday received bankruptcy court approval to begin liquidation sales at stores that are closing permanently.

The department store chain, which is expected to close 242 stores for good, also won rent relief as it tries to avoid liquidation. The company won't have to pay rent for June or July until July 13 for the roughly 600 stores it's not permanently closing, Judge David Jones ruled.

The company had requested rent relief for all of its locations, but the judge limited the deferred rent payments to stores that expect to continue operations.

Liquidation sales could begin as soon as this weekend at the initial 154 J.C. Penney stores that will permanently close. (Scroll down to see the list.)

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The Texas-based chain is the largest company to file for Chapter 11 bankruptcy protection so far during the coronavirus pandemic.

The going-out-of-business sales are expected to last 10 to 16 weeks.

Florida, Ohio and Indiana each have nine closures, California has eight, and New York, Texas and Georgia have seven closings apiece.

The company is hoping to shed debt and split into two entities: an operating business and a real estate investment trust. If that plan doesn't work, the company may agree to sell itself. Although the retailer hopes to stay in business, liquidation of the entire chain remains a possibility.

Are more store closings coming?:As many as 25,000 stores could shutter in 2020 due to COVID-19 impact

Liquidation sales have changed:Going-out-of-business sales different because of COVID-19

J.C. Penney attorneys told Judge Jones on Thursday that they face a crucial deadline of July 15 to deliver a business plan supported by key lenders. Without one, the company is expected to pursue a sale instead. Such a sale could lead to a total liquidation if no suitors emerge who are willing to continue operating the business.

Because of the COVID-19 pandemic, the store liquidation sales will be handled differently from past liquidations. Fewer shoppers will be allowed into stores because of social distancing guidelines.

J.C. Penney store closings 2020

Here are the first 154 J.C. Penney stores that are permanently closing.

Alabama J.C. Penney closing stores

Andalusia: Covington Mall, 922 River Falls St.

Florence: Regency Square, 301 Cox Creek Parkway

Scottsboro: Jackson Square, 1601 S Broad

Spanish Fort: Spanish Fort Town Center, 22500 Town Center Ave.

Arizona J.C. Penney store closings

Cottonwood: Little Creek Center, 1100-B Highway 260

Phoenix: Christown Spectrum, 1727 W Bethany Home Road

Tucson: El Con Shopping Center, 3501 E Broadway

Arkansas closing J.C. Penney stores

Batesville: Independence Center, 475 S St. Louis St.

Conway: Conway Towne Center, 201 Skyline Drive

El Dorado: Mellor Park Mall, 1845 N West Ave.

Harrison: The Fashion Center, 814 U.S. Highway 62-65 N

California J.C. Penney store closings

Chino: Rancho Del Chino Shopping Center, 14659 Ramona Ave.

Delano: 1228 Main St.

Los Banos: San Luis Plaza, 951 W Pacheco Blvd.

Paso Robles: Woodland Plaza, 120 Niblick Road

San Bernardino: Inland Center, 300 Inland Center

Tracy: West Valley Mall, 3100 Naglee Road

Turlock: Countryside Plaza, 1840 Countryside Drive

Yreka: Yreka Junction Mall, 1810 Fort Jones Road

Colorado J.C. Penney closing stores

Durango: Durango Mall, 800 S Camino Del Rio

Fort Collins: 135 Bockman Drive

Greeley: Greeley Mall, 2080 Greeley Mall

Montrose: River Landing Shopping Center, 3400 Rio Grande Ave.

Connecticut J.C. Penney store closure

Torrington: Torrington Commons, 251 High St.

Florida J.C. Penney closing stores

Bradenton: Desoto Square Mall, 303 301 Blvd. W

Cape Coral: Coralwood Shopping Center, 2301 Del Prado Blvd.

Fort Myers: Gulf Coast Town Center, 10083 Gulf Center Drive

Jacksonville: Regency Square Mall, 9501 Arlington Expressway

Lake Wales: Eagle Ridge Mall, 501 Eagle Ridge Drive

Mary Esther: Santa Rosa Shopping Center, 300 Mary Esther Blvd.

Orlando: Orlando Fashion Square, 3115 E Colonial Drive

Sebring: Lakeshore Mall, 901 U.S. 27 N

Tampa: Westshore Plaza, 201 Westshore Plaza

Georgia J.C. Penney closing stores

Athens: Georgia Square, 3700 Atlanta Highway

Atlanta: Northlake Mall, 4840 Briarcliff Road NE

Douglasville: Arbor Place Mall, 6650 Douglas Blvd.

Gainesville: Lakeshore Mall, 150 Pearl Nix Parkway

Rome: Mount Berry Mall 300 Mount Berry Square NE

Statesboro: Statesboro Mall, 325 Northside Drive E

Waycross: Hatcher Point Mall, 2215 Memorial Drive

Idaho closing J.C. Penney stores

Lewiston: Lewiston Shopping Center, 1826 19th Ave.

Ponderay: Bonner Mall, 300 Bonner Mall Way

Illinois J.C. Penney closing stores

Bourbonnais: Northfield Square, 1600 N State Route 50

Calumet City: River Oaks Shopping Center, 200 River Oaks Center Drive

Carbondale: University Mall, 1201 E Main

Freeport: Freeport Mall, 1810 S West Ave.

Mount Vernon: Times Square Mall, 115 Times Square Mall

Indiana J.C. Penney closing stores

Bedford: Bedford Town Fair, 1118 James Ave.

Elkhart: Concord Mall, 3701 S Main St.

Indianapolis: NW Pavilion at Michigan Road, 8752 Michigan Road

Kokomo: Kokomo Mall, 1718 E Blvd.

Madison: River Point Mall, 435 E Clifty Drive

Muncie: Muncie Mall, 3501 Granville Ave.

Plymouth: Pilgrim Place Mall, 1350 Pilgrim Lane

Richmond: Richmond Square, 4199 National Road E

Vincennes: Vincennes Plaza, 640 Niblack Blvd.

Iowa J.C. Penney store closings

Carroll: 504 N Adams St.

Marshalltown: Marshalltown Mall, 2500 Shopping Center St.

Kansas J.C. Penney store closures

Emporia: Flint Hills Village, 1678 Industrial Road

Liberal: Liberal Plaza, 1513 N Kansas Ave.

Salina: Central Mall, 2259 S 9th St.

Kentucky J.C. Penney closing stores

Campbellsville: Green River Plaza, 399 Campbellsville Bypass

Danville: Danville Manor Shopping Center, 1560 Houstonville Road

Hopkinsville: Bradford Square, 4000 Fort Campbell Blvd.

Maysville: Market Square, U.S. 68 S and AA Highway

Middlesboro: Middlesboro Mall, 905 N 12th St.

Owensboro: Town Square Mall, 5000 Frederica St.

Louisiana J.C. Penney store closures

Lafayette: Acadiana Mall, 5725 Johnston St.

Metairie: Lakeside Shopping Center, 3301 Veterans Memorial Blvd.

Shreveport: Regal Court Shopping Center, 7451 Youree Drive

Maryland closing J.C. Penney stores

Abingdon: Boulevard at Box Hill, 3411 Merchant Blvd.

Lanham: Woodmore Towne Center at Glen, 9100 McHugh Drive

La Vale: Country Club Mall, 1262 Vocke Road

Michigan J.C. Penney closures

Alpena: Alpena Mall, 2338 U.S. 23 S

Cadillac: Cadillac Shopping Center, 1550 N Mitchell St.

Petoskey: 408 E Mitchell St.

Minnesota closing J.C. Penney stores

Coon Rapids: Riverdale Village, 12550 Riverdale Blvd.

Eden Prairie: Eden Prairie Center, 8201 Flying Cloud Drive

Maple Grove: Grove Square Shopping Center, 13701 Grove Drive

Willmar: Kandi Mall, 1605 South First St.

Mississippi J.C. Penney store closings

Laurel: Sawmill Square Mall, 910 Sawmill Road

Starkville: Starkville Crossing, 864 Highway 12 W

Missouri closing J.C. Penney stores

Kirksville: Kirksville Shopping Center, 2206 S Baltimore St.

Independence: Bolger Square, 17610 E 39th St. S

Montana J.C. Penney store closure

Bozeman: Gallatin Valley Mall, 2825 W Main St.

Nebraska closing J.C. Penney store

Grand Island: Conestoga Mall, 3404 W 13th St.

New Hampshire J.C. Penney closings

Keene: West Street Shopping Center, 381 West St.

North Conway: Mountain Valley Mall, State Highway 16 and Route 302

Rochester: Lilac Mall, 25 Lilac Mall (Route 125)

West Lebanon: Upper Valley Plaza, 250 Plainfield Road

New Mexico J.C. Penney store closure

Alamogordo: White Sands Mall, 3199 N White Sands

New York J.C. Penney closing stores

Auburn: Finger Lakes Mall, 1579 Clark Street Road

Batavia: Batavia City Centre, 40 Batavia City Center

Canandaigua: Roseland Shopping Center, 3225 State Route 364

New Hartford: Sangertown Square Mall, 1 Sangertown Square

Oswego: Oswego Plaza, 140 State Route 104

Rome: Freedom Mall, 205 Erie Blvd. W

Syracuse: Destiny USA, 9559 Destiny USA Drive

North Carolina J.C. Penney closures

Henderson: Henderson Square, 380 N Cooper Drive

Lumberton: Biggs Park Shopping Center, 2910 N Elm St.

New Bern: Twin Rivers Mall, 3100 M L King Jr Blvd.

Raleigh: North Hills Shopping Center, 4217 Six Forks Road

Rockingham: Richmond Plaza, 1305 E Broad Ave.

Ohio closing J.C. Penney stores

Akron: Chapel Hill Mall, 2000 Brittain Road

Akron: Tri County Plaza, 1500 Canton Road

Alliance: Carnation Mall, 2500 W State St.

Ashtabula: Ashtabula Mall, 3315 N Ridge Road E

Cincinnati: Governors Plaza, 9365 Fields Ertel Road

Defiance: Northtowne Mall, 1500 N Clinton St.

East Liverpool: Summit Square Shopping Center, 16280 Dresden Ave.

Parma: The Shoppes At Parma, 7900 Day Drive

Piqua: Miami Valley Mall, 987 E Ash St.

Oklahoma J.C. Penney store closures

Enid: Oakwood Mall, 4125 W Owen K Garriott Road

McAlester: Tandy Town Shopping Center, 1744 E Carl Albert Parkway

Midwest City: Town Center Plaza, 7271 SE 29th St.

Muskogee: Arrowhead Mall, 501 N Main St.

Shawnee: Shawnee Mall, 4901 N Kickapoo Ave.

Tulsa: Tulsa Promenade, 4101 S Yale Ave.

Oregon J.C. Penney closures

Bend: Cascade Village, 63455 N Highway 97

McMinnville: McMinnville Plaza, 2180 NE Highway 99 W

Roseburg: Garden Valley Mall, 780 NW Garden Valley Blvd.

Salem: Salem Center, 305 Liberty St. NE

Pennsylvania J.C. Penney closing stores

Butler: Clearview Mall, 101 Clearview Circle

Hanover: North Hanover Mall, 1155 Carlisle St.

Monaca: Beaver Valley Mall, 200 Beaver Valley Mall

Monroeville: Monroeville Mall, 500 Monroeville Mall

Tarentum: Galleria at Pittsburgh Mills, 167 Pittsburgh Mill Circle

South Carolina J.C. Penney closings

Anderson: Anderson Mall, 3187 N Main St.

Beaufort: Cross Creek Mall, 328 Robert Smalls Parkway

Florence: Magnolia Mall, 2701 David H McLeod Blvd.

Myrtle Beach: Myrtle Beach Mall, 10177 N Kings Highway

Orangeburg: Prince of Orange Mall, 2390 Chestnut St.

Rock Hill: Rock Hill Galleria, 2321 Dave Lyle Blvd.

South Dakota J.C. Penney store closure

Brookings: University Mall, 990 22nd Ave. S

Tennessee J.C. Penney closing stores

Cleveland: Bradley Square, 200 Paul Huff Parkway NW

Columbia: Columbia Mall, 800 S James Campbell Blvd.

Dyersburg: Dyersburg Mall, 2700 Lake Road

Kingsport: Kingsport Town Center, 2101 Fort Henry Drive

Maryville: Foothills Mall, 101 Foothills Mall

McMinnville: Three Star Mall, 1410 Sparta St.

Texas J.C. Penney store closings

Dallas: Timber Creek Crossing, 6051 Skillman St.

Greenville: Crossroads Mall, 6834 Wesley St.

Huntsville: West Hills Mall, 2 Financial Plaza

Lewisville: Music City Mall, 2401 S Stemmons Fairway

Lufkin: Lufkin Shopping Center, 4600 S Medford Drive

Palestine: Palestine Mall, 1930 S Loop 256

Paris: Mirabeau Square, 3560 Lamar Ave. Highway 82

Utah J.C. Penney closing locations

Layton: Layton Hills Mall, 1201 N Hill Field Road

Logan: Cache Valley Mall, 1350 N Main St.

Vermont J.C. Penney closing stores

Bennington: Bennington Square, 99 Bennington Square

Berlin: Berlin Mall, 282 Berlin Mall Road

Virginia closing J.C. Penney stores

Danville: Danville Mall, 325 Piedmont Drive

Staunton: Colonial Mall, 90 Lee Jackson Highway

Wisconsin J.C. Penney store closure

Menomonee Falls: Crossroads Shopping Center, N96W18515 County Line Road.

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The pitchforks are out for Kohl's - CNN

New York (CNN Business) Kohl's can't catch a break from Wall Street.

For the second time in as many months and third time in a year, an activist investor is putting pressure on the department store chain to make changes or sell the company.

Kohl's KSS Activist hedge fund Macellum Advisors, which owns about 5% ofstock, said in a letter Tuesday that Kohl's board of directors and leadership team spent last year "materially mismanaging the business and failing to implement necessary" improvements.

Macellum said it planned to nominate a slate of new board members unless Kohl's decides to work with the firm. If Kohl's board won't make changes, the company should explore a sale, the activists said.

Shares of Kohl's rose around 6% Tuesday on the news.

Read More

The future of Kohl's is about to be decided - CNN

New York (CNN Business) Kohl's is pushing back against intense pressure from Wall Street to make changes or sell the company.

The retailer sent a sharply worded letter to shareholders Thursday ahead of the its annual meeting in May, urging them to reject an activist investor's efforts to gain control of the company and install its own board of directors.

Hedge fund Macellum has criticized Kohl's in recent months, arguing the chain has underperformed competitors and lacks a compelling strategy. It wants Kohl's to consider selling its real estate assets, spin off its e-commerce business or find a buyer for the whole company.

Macellum last month nominated 10 new directors to Kohl's 13-member board, which would give it more than enough votes to approve a takeover.

In its letter Thursday Kohl's called on shareholders to "reject Macellum's empty agenda" and vote against its "inexperienced, unqualified" board nominees.

Macellum is pushing for "a hasty sale at any price" and its nominees are "not truly independent," Kohl's said, because of their ties to the fund's founder, Jonathan Duskin. Duskin is also one of the board nominees.

"The choice is clear: Re-elect the Kohl's Board ... or elect Jonathan Duskin and his associates to destroy value," Kohl's said in the letter.

Macellum did not immediately respond to a request for comment.

Kohl's is also considering a sale of the company.

The retailer said earlier this month that it has engaged with more than 20 potential buyers, a sign of wide interest. Hudson's Bay Co., the owner of Saks Fifth Avenue, is also reportedly considering a bid.

There are also some broader concerns about the pressure from Wall Street and any potential sale of the company.

Wisconsin Sen. Tammy Baldwin wrote a letter last week to Kohl's, which was founded in the state and is based there, calling on the company to reject any offers that propose selling real estate assets, "increase the risk of bankruptcy, or imperil the jobs and retirement security of thousands of Wisconsin workers."

Department store woes

Kohl's, the largest department store chain in the United States, is trying to prove the exception to the decline of the sector in recent years.

Amazon AMZN Walmart WMT Target TGT Department store brands have long struggled against competition fromand discount clothing chains such as TJMaxx. Numerous big retailers including Sears, JCPenney, Neiman Marcus, Barney's and others have filed for bankruptcy in recent years.

Kohl's KSS returns and expanding its athleisure business. The changes haven't helped much. has attempted a variety of strategies to increase sales, such as partnering with Amazon to handlereturns and expanding its athleisure business. The changes haven't helped much.

In 2018, sales inched up 0.7% from the prior year, but in 2019, they dropped 1.2%. Sales plunged 20% in 2020 as Covid-19 raged, all but eliminating in-store shopping amid pandemic restrictions and mandatory closures.