Traditional US retail fails to compete with online stores
05.04.2017 2997

Traditional US retail fails to compete with online stores

One of America's largest retail shoe chains, Payless ShoeSource, went bankrupt. And Ralf Lauren closed the flagship store of Polo Ralf Lauren on Fifth Avenue in New York.

Retail Payless ShoeSource has about 4,5 thousand shoe stores for the whole family; retail is present in 30 countries around the world. The company filed a bankruptcy lawsuit because of the inability to service its loan debt. The retailer plans to conduct business restructuring and the immediate closure of 400 stores with low profitability in the United States and Puerto Rico.

In addition, premium clothing and accessories brand Ralf Lauren yesterday announced the closure of its flagship store, Polo Ralf Lauren, located in New York on Fifth Avenue. As part of optimizing the business, the company also plans to reduce staff and move its digital platform to a less expensive system. It is expected that these steps will save about $ 140 million. But the company will have to spend about $ 370 million to pay severance pay to laid-off employees and the commission for terminating the lease.

American traditional retail is going through difficult times. The main challenges for retailers today are high rental rates, an increase in hourly wages and other costs, and increased competition from online stores.

Among the retailers who filed for bankruptcy last year, in accordance with article 11 of the Bankruptcy Act in the United States, which implies a restructuring of the business due to the inability to service credit debt, Wet Seal, BCBG, American Apparel, Pacific Sunwear of California (PacSun) and Aéropostale Inc.

Payless ShoeSource, one of America's largest shoe retailers, has filed for bankruptcy. And Ralf Lauren has closed the Polo Ralf Lauren flagship store on Fifth Avenue in ...

Latest News

OR GROUP sees significant growth in socks sales on the Westfalika platform

Like-for-like sales of socks increased by 1% in the 2021st quarter of 24 on the Westfalika trading platform, which is operated by OR GROUP, the group said in a press release. During the specified period, 90 thousand were sold ...
19.05.2021 55

adidas and Parley host fourth World Run For The Oceans

Adidas continues to move towards sustainable manufacturing. Since 2015, adidas has produced over 30 million pairs of sneakers from Parley Ocean Plastic - recycled plastic waste collected in coastal areas and does not want to ...
19.05.2021 59

New Balance celebrates Gray Day again with limited edition

On May 15, 2021, the American sports brand New Balance released a new collection of sneakers in gray. The limited edition collection is based on the most famous sneaker from the brand 574. The collection includes ...
18.05.2021 66

MICAM will take place in its usual format in September

After the Italian government announced the easing of quarantine restrictions and gave the go-ahead to hold exhibitions in the traditional format, the organizers of the leading European international shoe exhibition MICAM decided on the dates of the ...
18.05.2021 156

Crocs wore tropical print clogs and unveiled new sandals

The American brand of clogs Crocs has charged this summer with a positive, presenting in the spring-summer'21 collection a bright and cheerful selection of classic "Crocs" in tropical colors, and also reminded that in addition to clogs, its assortment includes various ...
18.05.2021 147
When you sign up, you will receive weekly news and articles about the shoe business on your e-mail.

To the beginning