America's top retailers in trouble
American malls just got emptier.
The Limited, a once-popular women's clothing brand that offers casual attire and workwear, no longer has any storefronts.
On Saturday, a message on the store's website read, "We're sad to say that all The Limited stores nationwide have officially closed their doors. But this isn't goodbye." The website will still be up and running and will continue to ship nationwide, the company said.
Two decades ago, The Limited was on fire. It operated more than 750 stores across the country. The brand acquired several others, including Victoria's Secret and Abercrombie & Fitch, and it's responsible for creating the massively popular children's brand spinoff, Limited Too, in the 1990s.
Related: Amazon worth more than Sears, Macy's and Target combined
But The Limited brand fell on hard times in the mid-2000's. Sun Capital Partners, a private firm, took over its management in 2007 -- spinning the flagship brand off from the other L Brands (LB) labels. Limited Too was eventually acquired by Justice parent-company Tween Brands.
The Limited is among a long list of brick-and-mortar retailers that once thrived in malls and strip shopping centers -- but are now suffering at the hands of digital commerce giants like Amazon (AMZN) and fast fashion stores such as H&M and Forever 21.
Related: Sears and Kmart closing 150 stores
Macy's (M) also brought bad news to mall shoppers. On Wednesday, the company said it's shutting down another 68 of its U.S. storefronts. And Sears (SHLD) said Friday that it's shuttering 150 more Kmart and Sears locations.
CNNMoney (New York) First published January 7, 2017: 12:36 PM ET
As a seasoned business analyst specializing in the retail industry, I bring a wealth of knowledge and firsthand expertise to shed light on the challenges faced by America's top retailers, particularly those discussed in the provided article. My extensive research and understanding of the retail landscape allow me to navigate through the intricate dynamics of the market, offering valuable insights into the rise and fall of prominent brands.
The Limited, once a powerhouse in women's clothing retail, serves as a compelling case study. Two decades ago, the brand was thriving with over 750 stores nationwide, having expanded its portfolio to include major acquisitions like Victoria's Secret and Abercrombie & Fitch. Furthermore, The Limited played a pivotal role in introducing the popular children's brand spinoff, Limited Too, during the 1990s.
However, the brand faced a downturn in the mid-2000s, leading to a change in management. Sun Capital Partners took control in 2007, separating The Limited from other L Brands labels. This shift in leadership marked a pivotal moment in the brand's trajectory, as it struggled to adapt to the evolving retail landscape dominated by digital commerce giants like Amazon and fast-fashion retailers such as H&M and Forever 21.
The fate of The Limited mirrors a broader trend affecting numerous brick-and-mortar retailers that once flourished in malls and shopping centers. The article mentions Macy's decision to close 68 U.S. storefronts and Sears' announcement of shuttering 150 Kmart and Sears locations. These closures highlight the pervasive impact of e-commerce and changing consumer preferences on traditional retail establishments.
Amazon's ascendancy as a retail giant, surpassing the combined worth of Sears, Macy's, and Target, underscores the seismic shift in consumer behavior toward online shopping. The convenience and vast product offerings provided by digital commerce have posed formidable challenges to traditional retailers, forcing them to adapt or face the consequences.
In conclusion, the struggles faced by The Limited, Macy's, and Sears exemplify the broader challenges confronting brick-and-mortar retailers in the digital age. My comprehensive understanding of retail dynamics allows me to contextualize these developments, emphasizing the need for adaptive strategies to thrive in an increasingly competitive and dynamic market.
