Blockbuster Closing About 1,000 Stores

Blockbuster is ramping up its store-closure process. By the end of next year, the retailer is closing up to 960 locations as part of an “accelerated” program, according to a recent SEC filing. That number is up from the up to 425 that were previously on tap.

In addition, the company is trying to terminate between 275 and 300 leases and convert 250 to 300 units into outlets that sell used DVDs. So in a worst-case scenario, that would mean 1,560 Blockbusters will shut down.

Empty Bank Branches Add to Retail Woes

The Wall Street Journal reports that retail landlords now get to deal with the fallout of major bank branch closures. It seemed not too long ago that other retailers were complaining that they couldn’t afford leases in prime areas because banks were willing to pay so much more.

Well, that’s not really the case nowadays. One bank, Washington Mutual, which was getting more prominent in some areas than Starbucks, has closed about 400 units since its merger with JPMorgan Chase. Bank of America is shaving back 10% of its 6,000 units.

Jeweler Zales Closes More Stores

Big surprise: Consumers are buying much jewelry in this economy. Zale Corp. announced that it closed 118 stores during its most recent quarter, which ended July 31.

Over its full fiscal year, the Dallas-based company, which still operates just over 1,900 units, shut 191 locations. The retail is also entering rental-reduction agreements with landlords at its current stores, the company says.

Ann Taylor Closing More Stores

Ann Taylor Stores is going through another round of store closures, this time shutting 30 units as it also cuts 160 office jobs. Last year in January the chain closed 117 stores and later upped that number to 163 units. The company currently operates 939 locations.

The moves are part of a three-year cost-cutting plan that is intended to save Ann Taylor $125 million. Retail analyst Jennifer Black was quoted by Reuters, saying: “”The company is obviously on a mission to get back in the game with a vengeance. We believe they are well on their way.”

Graphic: A Look at (Mostly) Extinct Retail Concepts

The graphic below is a funny mall-directory-like map that shows retail concepts that have either gone out of business or are on the brink with descriptions of their situation. We especially like this statement about Spencer Gifts: “Specializing in all things unnecessary, Spencer’s is what Brookstone would be if it was run by a stoned 20-year-old.”

Are Major Store Closures Over?

It’s been kind of quiet on the mass store-closure front, hasn’t it?

Sure, we’ve seen a lot of damage with the Circuit City/Linens closures, and it seems like there could be unsurprising news from Blockbuster some time soon. But didn’t you think that by this time in 2009 there would be more fallout from major chains?

Kirkland’s, Going Off Mall, Closes Stores

Home-furnishings chain Kirkland’s is closing about between 35 and 40 stores this year, says this Reuters article.

The move comes as the chain is pursuing a strategy to move out of malls and into open-air shopping centers.

It’s not ALL bad news, though. The company still plans to open between 15 and 20 stores during the fiscal period, and sales are improving. In its most recent quarter, the chain posted a 5.3% same-store sales increase.

Can a chain like this make it through the recession successfully with a program of cutting back some of its stores and opening others in off-mall locations?

Do Bankrupt Retailers Deserve More Time?

Now that all of the Circuit City’s 560 stores are dark, landlords are trying to fill the spaces left behind. Some are finding success, like one firm we recently spoke with, the Blue Bell, PA-based Goldenberg Group, which leased a former Circuit City location to furniture chain Raymour & Flanigan in a Philadelphia shopping center.

We’re not sure if there are a lot of stories like that across the country, but it’s not difficult to guess that the process of filling these vacancies is tough, given that virtually every large retailer has cut back its expansion plans.

There’s Lots of Bankrupt Restaurants

A lot of moderate-sized restaurant chains have filed for bankruptcy recently that were under our radar. And this Reuters article says that more are expected this year.

Last month the owner of the 69-unit Black Angus chain filed for Chapter 11 protection, while the Ponderosa and Bonanza chains filed late last year.

Circuit City: Is There ANY Upside?

Some say there could be for other retailers.

A Dow Jones article specifically points to Best Buy as being the big winner, grabbing up to 40% of the liquidating retailer’s sales. Analysts are saying that other retailers, like Costco, Wal-Mart and Staples could stand to gain as well. So does that mean that centers with those stores as anchors will see increased traffic?