Add BCBG to the list of apparel chains whose stores will disappear from many shopping malls in 2017.
The California-based company, BCBG Max Azria Group Inc., is shuttering about 120 of its stores, primarily in the U.S., including its three remaining boutiques in Minnesota.
The stores, which sell higher-end women’s apparel and accessories, have started liquidation sales in the last few days. The company’s two stores at the Mall of America, one under the BCBGeneration brand and the other called BCBG Max Azria, are among those closing as is an outlet store in Albertville. Store closing sales will last for eight to 10 weeks.
“These stores either are unprofitable or have untenable lease agreements,” Seth Lubove, a spokesman for BCBG said in a statement.
The company did not immediately disclose how many stores it has, but Bloomberg recently reported it has more than 570 boutiques worldwide, including more than 175 in the U.S.
As its sales have been pressured by online shopping, the fashion house is repositioning itself to have fewer stores while it focuses on expanding its online presence, maintaining in-store boutiques it will continue to run inside of Macy’s and other wholesale and licensing agreements.
“Like so many other great brands, BCBG has been negatively impacted by the growth in online sales and shifts in customer shopping patterns and, as a result, has too large a physical retail footprint,” the company said last month when it initially disclosed its plans to restructure. But the number of stores it planned to close was not known until the last few days. “In order to remain viable, the company — like so many others in its industry — must realign its business to effectively compete in today’s shopping environment.”
BCBG is the latest retailer to shutter a sizable portion of its store portfolio in what has been a rough start to 2017 for many companies. The Limited and Wet Seal are closing or have already closed all of their stores nationwide following bankruptcies. American Apparel is also preparing to close all of its physical stores in coming weeks. And Macy’s is planning to shutter about 100 stores, including its flagship store on Nicollet Mall.
The shift to online shopping is one of the major forces causing the upheaval as is consumers’ preference for fast-fashion chains such as Zara and H&M as well as off-price concepts such as T.J. Maxx.
BCBG is notable in that it has been a higher-end offering at the mall, a brand founded by designer Max Azria and that was often worn by celebrities.
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