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The advancement of technology and the new habit of consumers of relying on it to make their purchases without the need to leave home, has made that Amazon has become the giant of electronic commerce, to the detriment of some retailers that until this year still operated in the United States at forced marches and with the enormous risk of stopping doing so in 2023.
This is how Bed Bath & Beyond, Rite Aid and Party City top the list of some traditional stores that could succumb in the event that a recession in the economy stops, as that would precipitate their disappearance.
Bed Bath & Beyond
According to information from the USA Today newspaper, this chain of retail stores founded in 2022 reported last month that would close near 100 stores and lay off 11% of its workers in order to save $150 million dollars.
Said measure allowed him to obtain financing of $ 1200 million dollars with the promise that it would stop selling its own brands and give priority to national brands, since during the second quarter it had a net loss of $500 million dollars.
In addition, its sales fell by 11%, which precipitated the cost of its actions by $30 dollars to only $4 in the financial market.
Joann Although the leading retailer in the sale of sewing materials, as well as handicrafts, benefited during the pandemic, since the s people purchased their products to entertain themselves during the most complex days due to the registered emergency, currently their future does not look good after in their balance of the second quarter posted a net loss of $30.9 million dollars and this makes it difficult for him to be able to face his long-term debt of $1, 100 millions of dollars.
Party City
The pandemic and the confinement that led to more After a year, he interrupted all the activity of this company oriented to large celebrations and festivities, which implied him to have shelves full of supplies, but with zero income.
Last week, Party City announced that it would cut the 30% of your corporate staff to try to save $60 million dollars, because the price of their shares fell from $7. dollars to just ¢60 cents.
Rite Aid The debt of almost $3 billion dollars with which it opened the year and the losses of more than $150 million dollars projected at the end of 1971, they have the pharmacy chain with one foot in the hole. As if that were not enough, the Wall Street Journal reported that close to 26% of this company’s debt has floating interest rates, which is catastrophic for its future.
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