Posted October 16, 2018 11:38:15Fox’s department stores are closing, the company said Monday, after months of declines that had hurt its stock and its brand.
The news was announced Monday afternoon by CEO Kevin O’Leary.
The company said it expects the closings to be completed in the first quarter.
Fox is a division of Wal-Mart Stores Inc. and is headquartered in the United States.
The division sells and distributes groceries, clothing, clothing accessories, household and household accessories, and home goods.
In 2016, Fox had sales of $1.45 billion, a year when it was still in the grocery business, according to FactSet.
But that was in a shrinking market.
“The market has changed significantly in recent years, and we expect the market to continue to change in the near term,” Fox’s chief executive, Stephen M. Loh, said in a statement.
“Our stores are an important part of our family, and it is a challenging time for us as a company.
We are doing everything we can to find new ways to provide value to our customers, including through more flexible pricing and a stronger focus on the retail space.”
Fox also has announced that it will shut down the department stores in a number of states including Arizona, California, Colorado, Connecticut, Florida, Indiana, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Vermont, Virginia, Washington and Wisconsin.
The stores will also close in the District of Columbia and some parts of Virginia.
“These closings are a direct result of a recent decline in sales and a number that we have determined are unsustainable,” O’Reilly said in the statement.
Fox’s sales fell 12% to $6.03 billion in the fiscal fourth quarter, according a FactSet report.
The sales decline was the result of falling retail and other store sales as well as a loss of its brand, Fox said.
The chain said the cuts will save $300 million.
It also said it would close about 1,400 stores and will make about $1 billion in savings through a new strategic plan.
Fox, which has been growing at a clip of about 2% a year, has been trying to revive its sales by shifting into a bigger and better-performing department store business.
Fox has more than 500 stores in more than 60 countries.
The business was hurt by a decline in the quality of goods and services, but the retailer said it was focused on the health of its stores.
The department stores were the first to be affected by the recent declines in sales.
O’Reily said the department store chain is also reducing the number of stores and the number that open, and the company expects the department chain to be closed by the end of the year.
“This is about more than just the future of Fox,” O ‘Reilly said.
“We are investing in the health and sustainability of our stores, and are doing so by reducing the size and scope of our retail operations.”