The last year has remained bleak and gloomy for majority of the retailers. More than 20 retailers like Toys R Us, Radio Shack and HHGregg have filed for bankruptcy and few of them were even liquidated. Now that we’ve stepped into the New Year 2018, are things going to get better in 2018? Probably no! Things might get even worse in the New Year. In fact, the CNBC says that the things will most likely get worse in the initial part of 2018 and it is going to get tough for the retailers.
The few companies, the names of which are listed below will have all suffered in 2017. While many have closed down their stores, there are some others who also filed for bankruptcy. Take a look at some of the most prominent retailers who are struggling while stepping into 2018.
#1: Sears Holding
Leaving SHLD (Sears Holding) off the list of companies which are not going to survive in 2018 will be like eliminating the name of Tom Brady from the discussion of the famous quarterbacks. It is really unfortunate to note that Sears have been reverse moving for many years now, losing all the money and closing down stores at a pretty significant way. The little they have survived, they did it by selling their assets, borrowing money from their CEO, named Edward Lampert. Since the company is running out of more things to sell, they will probably close down in 2018.
#2: J.C. Penney
J.C Penney is not sailing on the same ship as Sears. Their CEO Marvin Ellison has taken few bold steps and comparatively, their store sales have been boosting but yet the chain of stores keeps losing money. So, in spite of the increase in sales, their loss grew to more than $128 million in the latest quarter from $67 million in the third quarter of 2016.
#3: Toy R Us
Reports reveal that Toy R Us had filed for bankruptcy way back in September and they also secured $3.1 billion in bankruptcy from a group of lenders, which suggested that the company is going to emerge from their poor financial state. But there is no such guarantee to this. The main problem with them is that the climate in which this company operated hasn’t ever improved. There are few rivals and competitors of Toy R Us which are selling toys at huge discounts in order to attract customers. Meanwhile this online retailer is moving towards bankruptcy.
#4: Claire’s stores
It was in 2017 that Claire’s was listed in the names of the top companies are probably not going to survive in 2018. However, their condition has become better slightly. During the last quarter, the sales rose by 0.8% and the same store sales rose by 1.2%. This chain is also going to be put underwater in 2018.
Therefore, if you’re wondering about the way in which the best stores are going to operate in the New Year, you should learn lessons from the above mentioned chain stores which are on the verge of filing bankruptcy and closing down.