Is Chico’s closing? You may be dismayed that Chico’s announced it will close more than 30 stores in 2022. We know Chico is one of the popular go-to-destinations for women. It offers a wide range of jewelry, accessories, and clothing.
It was founded in Sanibel, Florida. Later, in 1995, The White House was introduced in Baltimore, Maryland. The Black Market, the new concept store, also opened. In 2003, The brand pair was taken over by Chico’s FAS.
In this blog post, we will walk you through the updated status of Chico’s FAS. Here we aim to clarify which locations were set to be closed, the reasons behind it, what initiatives the company took to expand its business in the future, and several other things.
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Is Chico’s Closing Stores?
The parent company of Chico’s, Soma, and White House Black Market Chico’s FAS announced its significant number of stores closing. This announcement baffled customers with many questions about one of their favorite go-to-market destinations.
Yes, Chico’s closed its several stores. It is reported that the company operated approx 1,400 stores of three brands combined, including more than 600 stores operated under Chico’s brand, 300 stores operated by the Soma brand, and more than 450 outlets operated under the Black Market brand. Out of which nearly 250 of its locations were adversely affected and closed.
Chico’s FAS, the parent company of Chico’s, Soma, and White House Black Market, announced the closure of its locations throughout the United States. This move was a wake-up call for the brand’s loyal customer base. It decided to shift its focus to make the overall company digital.
Another brand, White House Black Market, known for authentic women’s clothing, also announced plans to close its multiple locations nationwide.
The locations that have been closed are as follows:
- Nowhere, CA 24680 – # 9012 Nowhere Boulevard, Space E, Store 98.
- Somewhere, AZ 12345 – #5678 Somewhere Avenue, Mall H, Unit 2A.
- Anytown, AL 67890 – # 1234 Anytown Street, Building C, Suite 150.
Chico’s FAS recently announced to close several stores across its portfolio. We have also compiled a list of Soma store locations that have been closed. It was reported that these closures would come under action from the time of announcement over the next three years. You can check the locations that were set to be closed by Soma below:
- Fillmore Street, San Francisco, California
- Shops at Midtown Miami, Miami Florida
- International Plaza and Bay Street, Florida
- Lenox Square Mall, Atlanta, Georgia
- 900 North Michigan Avenue, Chicago, Illinois
- Prudential Center, Boston Massachusetts
- 850 3rd Avenue, Manhattan, New York
- The Galleria, Houston, Texas
- NorthPark Center, Dallas, Texas
Yeah! We know all were up in arms and counted on WHBM for their fashion needs. They showed their disappointment when the company announced its store’s closures.
This announcement stains all the employees, even though the company committed to helping the impacted employees and their families during hard times. Besides companies, the government also provided unemployment advantages, helped secure new jobs, and offered job training. All these efforts were put to reduce their lives negative effects and pave a flexible way to their next steps.
How Many Chico’s Stores Are Closing?
As of April 29, 2023, it is reported that Chico’s operated 1,262 boutiques and stores; it also does business online for each of its brands across the United States, the U.S. Virgin Islands, and Puerto Rico.
Later, as of May 31, 2023, Chico’s has 486 stores, and most of its locations are in California with 46 stores.
Besides, several other big box stores announced plans to close their locations. It is reported that more than 2,100 stores are set to close this year in the United States. Dozens of retailers, including Walmart, Bath & Body Works, Foot Locker, Amazon, and more, are closing their stores throughout the United States.
To restructure the company’s overall structure, it decided to close several of its locations. Here is a quick rundown of the closed locations:
- Texas – Chico’s Sunset Mall
- Indiana – Chico’s Hamilton Town Center
- Kentucky – Chico’s Crestview Hills Town Center
- Florida – Chico’s Windermere Village
- Minnesota – Chico’s Ridgedale Shopping Center
This can be disheartening news for all the customers who love to shop with Chico’s brand. However, the company also revealed the main motive for this move. It indicated that the company is closing its locations to streamline its operations. It planned to shift its focus to productive and profitable locations.
Why Is Chico’s Closing Its Stores?
According to reports, it is reported that “The brand closed those stores that were underperforming or unable to meet the sales target. All the closing stores were mall-based Chico’s and WHBM boutique’s low-performing stores.” However, the reports did not reveal which locations were to be closed at that time.
Undoubtedly, the COVID-19 pandemic hit every industry hard; some were impacted and recovered, while some closed permanently. Similarly, Chico’s had a long-lasting impact of the COVID-19 pandemic that led the brand to shut down its unproductive stores across the country.
Other reasons, along with the coronavirus pandemic, were stores suffering from a lack of foot traffic and declining sales.
Some of Chico’s locations started recovering, while some closed their doors permanently. Although the decision was difficult for the company, the ongoing challenges from the onset of the pandemic forced it to make this critical move. Due to the closures, employees, customers, and the surrounding businesses were laid off, and the entire look and feel of the company were impacted adversely.
During those tough times, closing stores was a pivotal step for the owners and the consumers to embrace the trending retail atmosphere, including exploring creative growth options, e-commerce, prioritizing customer safety, and expanding and growing their business.
The fact is, every industry should have to adapt to changes to meet the latest trend and to survive and thrive. Constant evolution is a must in every industry, including the retail industry.
Who Is Chico’s target market?
Chico’s is well known for its high-quality clothing and brands. Shoppers love to connect with Chico’s to get America’s no.1 brand of clothing. It is noted that customers like to associate with baby boomers and Generation X of the Chico’s. The company Most likely features groomed models older than 30 for marketing purposes. But now, the company is gaining popularity among Gen Z and millennials.
According to the employees, Chico’s could be an excellent place to work and gather valuable guidance and experience. Besides, the company offers perks and packages, including good facilities regarding health & wellness programs, on-site daycare, cafes, and several other facilities also offered.
Who Is Chico Owned By?
Chico’s FAS is an American clothing and accessories store that specially offers attire and products for women. It was established on Sanibel Island, Florida, in 1983. Helene Gralnick and Marvin, in Fort Myers, Florida, founded it.
The brand initially operated four other brands, including Soma, TellTale, Chico’s, and White House Black Market. In October 2019, it expanded its business and operated thousands of stores throughout the United States and Canada. Besides, it explored its online presence.
What Is Chico’s Company Net Worth?
As of June 26, 2023, it is estimated that the company Chico’s Net Worth was nearly 661.86 million U.S. Dollars, dropping by -6.56 percent in a year. Moreover, its enterprise value was 1.07 billion U.S. Dollars, Stock Price – 5.37 US Dollars.
If we talk about the revenue generated by the company as of April 29, 2023, which was 2.14 billion U.S. Dollars, it means virtual growth has been seen in a year.
Alternative Options To Chico’s Stores?
Although the company shut down its numerous locations throughout the country, those who love to shop with Chico’s must find alternate options to the stores as soon as possible. Here we have curated this section for you to make suitable choices while looking for stylish and timeless attire.
- The Talbots, Inc.
- White House Black Market
- J. Jill, Inc.
- Chico’s Off The Rack – Chico’s Outlet
- Soft Surroundings
- Ann Taylor
- Soma
- Coldwater Creek
- Express, Inc.
- Lands’ End, Inc.
To Sum Up
Chico’s FAS, Inc., is one of the leading fashion retailers throughout the United States. It owns three different brands; one is Soma, another is Chico’s, and the third one is White House, Black Market. The brand is well known for delivering superior quality clothing and accessories for over 35 years to meet the latest trend and give the best to its customers.
It is true; the company struggled with financial issues in recent times as the company was experiencing a huge loss in profits and sales due to the rise of high competition and e-commerce. Later, the company decided to anchor on digital growth after facing all those financial challenges.
When the company announced the strategic plan, it also revealed that it would shut down several stores to stabilize the company financially. To improve the entire customer experience and boost the company’s online presence, it decided to redirect resources and promote the physical footsteps of the company.
If you worry about its closures, customers also have another option and can still take advantage of Chico’s online collection. Customers can still enjoy the same customer service, style, and superior quality.