Guess which one’s going out of style? Iconic retail chain to shut down locations nationwide
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The retail landscape is changing, and not even the most cherished brands are immune to the uncontrollable shifts occurring in consumer behavior and the economy.
A once-popular retailer known for its trendy denim and affordable luxury fashion has confirmed a significant downsizing.
The company will be closing at least 20 stores by the end of the year, a move that reflects the broader challenges facing brick-and-mortar retail.
The announcement came from Guess CEO Carlos Alberini during an earnings call, where he shared the sobering news with investors.
The decision to close these stores is a strategic one, aimed at bolstering the company's financial health.
Alberini cited persistent declines in foot traffic as a primary reason for the closures, a trend that has been exacerbated by the pandemic and the rise of e-commerce.
"We expect to reduce our North American store fleet by roughly 20 stores by the end of the year," he explained. Some of those 20 stores are also reaching their “natural lease end” so, Guess would simply not be renewing it.
Specific closure dates and locations have not been released so far. Placer.ai data showed that foot traffic at Guess stores in New York alone has taken a 40% dip in February.
A Look Back at Guess's Legacy
Founded in 1981 by the Marciano family, Guess quickly made a name for itself with its iconic jeans and signature styles that provided accessible luxury options.
Guess jeans shot to fame after their distinctive three-zip Marilyn style gained celebrity attention and appeared on Michael J. Fox in the 1985 classic Back to the Future.
Over the years, the brand teamed up with stars like Drew Barrymore, Jennifer Lopez, and more to headline its high-profile ad campaigns.
Also read: Prices aren’t the only thing dropping—Dollar General is too. What’s happening?
For decades, Guess stores were a staple in American malls, but the retail giant has faced challenges in recent years.
The coronavirus pandemic hit the company particularly hard, and Guess has been working to recover ever since.
Over the past five years, Guess has closed at least 100 stores, according to Business Insider.
With the upcoming closures, the company will be left with around 200 brick-and-mortar locations. This downsizing is part of a broader trend in retail, with experts warning that as many as 45,000 stores could close in the next five years.
Alberini's strategy for Guess includes not only store closures but also a shift in operations.
The company plans to move away from direct business in China in favor of partnering with a “local, highly-experienced partner.” This move is expected to contribute to a $30 million increase in operating profit by 2027.
The CEO also mentioned ongoing conversations with several potential candidates for partnerships, including a deal with WHP Global, which would give the latter a 57% majority stake in Guess's stock.
This partnership could be a lifeline for Guess, as it has previously boosted earnings through collaborations, such as the acquisition of designer bag brand Rag & Bone, and others like Toys R Us, Vera Wang, and Anne Klein.
Guess is not alone in its struggles. The retail industry has seen a wave of store closures and bankruptcies, with companies like Forever 21 and Express filing for bankruptcy protection and closing locations.
Source: The Fashion Fable / Youtube.
Mall-based retailers and fast-fashion brands are particularly vulnerable as consumers increasingly turn to online shopping, drawn by the convenience and variety offered by e-commerce giants like Shein and Temu.
Read next: Store closure shocker: Is your neighborhood favorite one of the last eight left?
Have you been affected by the closure of a favorite store? How has your shopping behavior changed in recent years? Share your experiences and thoughts in the comments below!
A once-popular retailer known for its trendy denim and affordable luxury fashion has confirmed a significant downsizing.
The company will be closing at least 20 stores by the end of the year, a move that reflects the broader challenges facing brick-and-mortar retail.
The announcement came from Guess CEO Carlos Alberini during an earnings call, where he shared the sobering news with investors.
The decision to close these stores is a strategic one, aimed at bolstering the company's financial health.
Alberini cited persistent declines in foot traffic as a primary reason for the closures, a trend that has been exacerbated by the pandemic and the rise of e-commerce.
"We expect to reduce our North American store fleet by roughly 20 stores by the end of the year," he explained. Some of those 20 stores are also reaching their “natural lease end” so, Guess would simply not be renewing it.
Guess will close at least 20 stores by the end of the year to improve financial standing and due to declining store traffic. Image source: The Fashion Fable / Youtube.
Specific closure dates and locations have not been released so far. Placer.ai data showed that foot traffic at Guess stores in New York alone has taken a 40% dip in February.
A Look Back at Guess's Legacy
Founded in 1981 by the Marciano family, Guess quickly made a name for itself with its iconic jeans and signature styles that provided accessible luxury options.
The iconic Marilyn style jean. Image source: The Fashion Fable / Youtube.
Guess jeans shot to fame after their distinctive three-zip Marilyn style gained celebrity attention and appeared on Michael J. Fox in the 1985 classic Back to the Future.
Over the years, the brand teamed up with stars like Drew Barrymore, Jennifer Lopez, and more to headline its high-profile ad campaigns.
Also read: Prices aren’t the only thing dropping—Dollar General is too. What’s happening?
For decades, Guess stores were a staple in American malls, but the retail giant has faced challenges in recent years.
The coronavirus pandemic hit the company particularly hard, and Guess has been working to recover ever since.
Over the past five years, Guess has closed at least 100 stores, according to Business Insider.
With the upcoming closures, the company will be left with around 200 brick-and-mortar locations. This downsizing is part of a broader trend in retail, with experts warning that as many as 45,000 stores could close in the next five years.
Guess Jeans was founded by the Marciano brothers from France. Image source: The Fashion Fable / Youtube.
Alberini's strategy for Guess includes not only store closures but also a shift in operations.
The company plans to move away from direct business in China in favor of partnering with a “local, highly-experienced partner.” This move is expected to contribute to a $30 million increase in operating profit by 2027.
The CEO also mentioned ongoing conversations with several potential candidates for partnerships, including a deal with WHP Global, which would give the latter a 57% majority stake in Guess's stock.
This partnership could be a lifeline for Guess, as it has previously boosted earnings through collaborations, such as the acquisition of designer bag brand Rag & Bone, and others like Toys R Us, Vera Wang, and Anne Klein.
Guess is not alone in its struggles. The retail industry has seen a wave of store closures and bankruptcies, with companies like Forever 21 and Express filing for bankruptcy protection and closing locations.
Source: The Fashion Fable / Youtube.
Mall-based retailers and fast-fashion brands are particularly vulnerable as consumers increasingly turn to online shopping, drawn by the convenience and variety offered by e-commerce giants like Shein and Temu.
Read next: Store closure shocker: Is your neighborhood favorite one of the last eight left?
Have you been affected by the closure of a favorite store? How has your shopping behavior changed in recent years? Share your experiences and thoughts in the comments below!
