ABERCROMBIE & FITCH TO CLOSE HUNDREDS OF STORES AS SHOPPERS SHUN BRAND…
More bad news for retail as Abercrombie & Fitch will be closing down hundreds of stores. According to this CNBC report 50% of the retailers leases will be up in the next 18 months making store closings a no brainer for this struggling retailer.
Roughly 50 percent of the retailer’s 745 U.S. leases are up for renewal over the next 18 months, the company said Friday. With profits under pressure, this window gives management the opportunity to continue pruning the company’s footprint without being penalized for exiting space early.
Though management did not outline how many of its domestic stores could potentially close, it plans to shutter 35 locations in the fourth quarter through natural lease expirations. That’s in addition to the 15 stores it’s closed so far this year.
“I would not be surprised if half of those [locations up for renewal] end up closing,” Garrick Brown, Cushman & Wakefield’s vice president of retail research for the Americas, told CNBC.
Between the Abercrombie & Fitch and Hollister brands, the company has shuttered more than 350 stores over the last six years.