Women's apparel conglomerate Chico's FAS says it will close stores in a bid to reduce costs and help reverse declining sales. "Our focus is on implementing those initiatives that drive the greatest levels of growth and profitability of our business," said President and CEO Shelley G. Broader.
One of the company's Soma lingerie stores
Chico's says it wants to reallocate resources from underperforming stores to digital initiatives that support omni-channel shopping. To do this, Chico's plans to close at least 250 of its roughly 1,400 U.S. stores over a three-year period.
These closings will be distributed across the retailer's three brands — Chico's, White House Black Market and Soma — and most of them will occur within about two years.
For the fourth quarter, the company anticipates a low-double-digit decline in sales and a mid-single-digit decline in consolidated comparable sales.
By Brannon Boswell