After announcing the closure of its 2,300 stores in the U.S., Puerto Rico and Canada, Payless is selling off everything with discounts up to 40 per cent off.
This is the largest liquidation sale in retail history, according to Payless and it will continue until all $1 billion worth of merchandise is sold, including sales on national popular brands, furniture, fixtures and equipment.
Major store closings happen all the time, and there’s a number of reasons why this happen. Canadian retail business expert Brent Barr believes that it all comes down to lack of profitability.
“They’re not generating enough return on the investment,” Barr said.
“When they look at how much money they spent on the business, the return would be better placed somewhere else. In other words, they’re not making enough money to pay the bills,” Barr said.
According to Payless, the sale is being operated by a joint venture of firms, which includes Tiger Capital Group in New York, B. Riley Financial Inc, Great American Group LLC in Los Angeles.
“Shoppers will be able to take advantage of significant liquidation discounts on every item in every store in the U.S. and Canada,” Scott Carpenter, president of Great American Retail Solutions, said in a media release on Monday.
Payless announced it was closing its North American Stores just last week. Shoe lovers and loyal Payless customers did not accept the news very well.
Payless is really closing 🥺🥺 where am I gonna get last minute shoes
— caroline (@carostagram) February 19, 2019
Omg you don’t know how sad I was when i found out Payless is closing all stores
— Indra (@indecisiveindra) February 25, 2019
Just days later the Hudson Bay company also announced that they’ll be closing all its 37 Home Outfitters across Canada.
In a release from HBC’s Chief Executive Officer, Helena Foulkes said, “The recent merger of our European retail operations in Germany, and today’s announcement exemplify the bold strategic actions we are taking to set HBC up for long-term success,”
Foulkes also said in the statement she understands that it will be a difficult time for associates, and is looking to help find work for impacted team members of HBC.
Home Outfitters is expected to close all their stores this year.