No Cyber Monday Specials for Pending Store Closures
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Based on 2009 third quarter earnings, many of our favorite retail stores are closing their doors (at least some of them) due to the impact of the recession. Walletpop reports this roundup of retailers you might see less of after 2009:
- Payless – closing 143 stores.
- Zales – already closed 160 stores, expects more store closures.
- Blockbuster – switching business model from stores to kiosks. Expects to have 10,000 kiosks by 2010.
- Pacific Sunwear – Pac Sun will close 40 stores.
- Sears & Kmart – closing 28 stores.
- Samsonite – filed for chapter 11. Closing 84 of 173 stores.
- Abercrombie & Fitch – closing all Ruehl stores. Expects more store closures.
- Pier 1 Imports – closing 80 stores.
- Starbucks – planned to close 600 stores in 2008, now says they will close 300 additional stores.
- Ruby Tuesday – 70 restaurants
- World Market – closing 26 stores
- Ann Taylor – closing 163 stores
- Claire’s – closing 119 stores
- Tiffany – closed Iridesse chain (16 stores)
- Yankee Candle – closed all Illumination stores
- Walden Books – down to 50 stores from 300 in 2008.
- Ritz Camera – closing 300 stores
- Gottschalks – liquidated all 58 stores. Filed for chapter 11.
- Virgin Megastores – Not so mega. Closed all stores.
If you think this list of stores on the demise may sound like a great opportunity for Cyber Monday specials, you’d be wrong. This American Life’s radio episode of “Scenes from a Recession” explains the first step a corporation makes when liquidating a store is to raise prices.
During the liquidation of Circuit City in early 2009, Circuit City purposely advertised their filing of chapter 11 bankruptcy to drive up shopper interest, while raising all their prices back to the original retail value. It wasn’t quite a “bait and switch” scheme since Circuit City never promised lower prices, yet shoppers were less than satisfied when they failed to discover a wholesale discount on computer monitors. It took two months for Circuit City to liquidate their innovatory, and many of the Circuit City employees admit there were few deals to find.
The lesson: don’t assume a store closing banner is a sign for good deals. Suffering business need to recoup their money, and they can’t always do that with a 25% sale. It’s fine to hunt for cash savers at these closing stores, but Cyber Monday specials are still the best way to find a deal this holiday season because you can compare prices from the comfort of your home (or work if you have a cool boss). No matter where you shop this year, do your research and you’ll have a wise and affordable Cyber Monday experience.
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