Chances are, as somebody already mentioned in another thread, that the next financial report will come with the announcement of more closings and the list of affected locations. I have to admit I'm not looking forward to it. There's no way to know for sure, but our foot traffic has not been great and we've been receiving less inventory. How worried should I be?
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It has to do with overall profit of the store, of which the lease expense can be a big factor. If your location has a expensive lease, you need to make enough to cover it. It also matters if your lease is up soon, there is a cost to break the lease and move out early so they may keep an unprofitable store open longer if it would cost more to close early. BBB has been negotiating to reduce lease expense where they can and some landlords would rather take something than nothing if they don’t think they can get a new tenant, if you are in a full, busy center you might be in trouble compared to a slower center with vacancies.
They’ve already told all the stores that are closing, if you didn’t get spoken to about the store closing, you should be fine… for now anyway
Yes it has to do with your lease or rent not based 100% on how well your store is doing
from what i noticed over the last round of two of closings, the lease of your store has a big big part in it; just last year, an A volume store with a buybuybaby closed in my district, simply because of their lease