These U.S. Retailers Are Completely Failing to Attract Customers

It’s a detrimental time for brick-and-mortar stores. Beloved restaurants aren’t the only ones taking the fall; retail stores are hurting, too. Many credit online shopping, but it can’t shoulder all the blame for the struggling retailers nationwide.

Will future generations know what it’s like to shop in a real store with actual cash registers? If the number of struggling retailers is any indication, the answer is no. These 15 retailers are failing miserably in their attempts to attract customers.

1. Gander Mountain

Ganger Mtn store front

The sports store has struggled with e-commerce. | iStock.com/jetcityimage

The sporting goods industry is taking a beating from consumers. Gander Mountain’s inability to compete with e-commerce businesses offering the same products for cheaper prompted it to file for bankruptcy in March 2017 and close 32 of its stores. Only time will tell whether customers will return to Gander Mountain for their outdoor shopping needs now that Camping World is the franchise’s new owner.

Next: A dominant store that has seen better days

2. RadioShack

Radio Shack

The electronics giant is losing out to online competition. | Getty Images

Consumers enjoyed ultimate convenience during RadioShack’s heyday, as nearly 95% of all American households had a store within three miles of their homes. Today, the retailer has succumbed to closing over 1,000 stores, leaving roughly 70 stores to carry the torch for customers who prefer buying electronics in person rather than online.

Next: This brand is going “under.”

3. Under Armour

Under Armour store front in NYC

The store received negative press after comments the CEO made about Donald Trump. | Spencer Platt/Getty Images

Under Armour was once a sportswear heavyweight, but its recent profit margins are less than stellar. The brand has closed more than 50 stores because of dramatically slowing sales. It’s predicting dismal growth of only 9% to 11%  for 2017, which is hardly comparable to the success it enjoyed in prior years.

Combine that with the resurgence of other big competitor brands, such as Puma and Adidas, and Under Armour is struggling to compete for consumer preference. Puma’s recent partnerships with younger influencers, including Rihanna and The Weeknd, are also a driving force in Under Armour’s struggle to retain customers.

Next: Online sales are killing this sports-driven retailer.

4. Dick’s Sporting Goods

dick's sporting goods entrance

A sign with the company logo hangs above the entrance of a Dick’s Sporting Goods store. | Scott Olson/Getty Images

It seems like every sporting goods store is struggling. Dick’s Sporting Goods limped into the third quarter of 2017, with its shares dropping about 23% and it’s projected growth slowing to 1%.

This may not seem too alarming, but Dick’s predicts a bigger plunge in sales even as it increases discounts. According to USA Today, “Sales of hunting goods, licensed products and athletic apparel undermined Dick’s during the period, offsetting growth in footwear, golf and online sales.”

Next: An iconic retailer closing an iconic store

5. Ralph Lauren

Ralph Lauren Fifth Avenue store

The American brand is closing its store on Fifth Avenue. | Spencer Platt/Getty Images

Even high-end brands aren’t immune to the retail struggles affecting big department stores. It’s a telltale sign of retail doom when even the glitz and glam that cemented Manhattan’s Fifth Avenue into retail royalty is struggling to attract shoppers.

Ralph Lauren is the latest retailer to close its trademark New York storefront on Fifth Avenue. Declining sales, failed attempts at modernizing the brand for younger buyers, and jacked up rent prices on the block all contributed to Ralph Lauren’s decision to close the store. It plans to restructure store formats and streamline operations to win back customers and boost sales in the process.

Next: The reason no one shops at Sears and Kmart

5. Sears and Kmart

going out of business signs

Sears and Kmart are moving online. | Megan Elliott/The Cheat Sheet

Those accustomed to a Sears or Kmart store full of energetic shoppers looking for a deal now see a desolate parking lot. Today, many Sears and Kmart storefronts — both owned by Sears Holdings — are riddled with giant posters advertising “everything must go” and “all sales final.” The company has already closed approximately 180 Sears and Kmart stores in 2017, with plans to close even more.

But with so few in-demand products available, why would anyone make the trek to a physical location? Sears sold its Craftsman tool business to Stanley Black & Decker and is licensing Kenmore appliances and Diehard auto parts to other retailers.

Next: Why Macy’s is still failing to lure more customers to the store

6. Macy’s

The department store giant was recently surpassed by Amazon. | Chris Hondros/Getty Images

Sales are still lagging Macy’s despite the debut of Macy’s Backstage, pop-up shops that offer deeply discounted items. Still, reports say Macy’s has lost sight of what customers really want, allowing Amazon the opportunity to surpass the retailer as the largest supplier of apparel.

Macy’s turnaround strategy includes efforts to increase the number of exclusive items that cannot be found elsewhere and ramping up its mobile app to improve the in-store shopping experience. And if the Amazon effect isn’t already influencing its rebranding strategy, Macy’s also says it’s working to improve methods that would streamline the process for consumers to buy online and pick up in store.

Next: A popular women’s clothing line is on the fence.

7. Ann Taylor (and friends)

Ann Taylor

A retail group bought Ann Taylor in 2015. | Andrew Burton/Getty Images

Ascena Retail Group — the women’s clothing retailer that owns Ann Taylor, Loft, Dress Barn, Lane Bryant, Justice, and more — is planning to close a large portion of its stores. At least 268 stores will close while the remaining 399 could go under if store rental negotiations fail, according to Clark.com. The business-casual retailers are struggling to attract customers as they combat increased competition from discount stores that sell similar clothing for less.

Next: An athletics retailer that blames lack of choices for lack of traffic

8. Lululemon

Lululemon athletica storefront

The former CEO landed in hot water after making negative comments about women’s bodies. | Joe Raedle/Getty Images

Like Under Armour, athletics retailer Lululemon is poised to post slowing sales growth in 2017. The brand’s CEO Laurent Potdevin blamed the sluggish performance on lack of “depth and color” available for purchase in clothing. But unlike other struggling retailers, Lululemon is pushing forward, opting to open new stores rather than focusing on attracting more customers to existing stores. Whether the risky strategy pays off remains to be seen.

Next: Why J.C. Penney could affect the future of malls forever

9. J.C. Penney

JCPenney store front

J.C. Penney has had to close several stores. | Justin Sullivan/Getty Images

It’s no secret department stores have had a rough go when it comes to attracting customers to their physical stores. J.C. Penney was once the cornerstone of mall success. But recently it announced plans to shut down about 140 of its department stores — nearly 14% of the total store base to “effectively compete against the growing threat of online retailers.” For its remaining stores, it plans to focus on beauty, home refresh, and special sizes rather than innovative shopping experiences and exclusivity.

Next: A popular luxury brand that hopes to win back the hearts of its loyal customers

10. Michael Kors

Michael Kors store front

Sales slowed for the company. | Spencer Platt/Getty Images

Luxury brand Michael Kors is another retailer struggling to attract customers. It blamed the 2017 profit loss on a difficult retail environment combined with a “product and store experience did not sufficiently engage and excite consumers.” The company views 2018 as a transition year where it will bring heightened focus on store experience and product innovation to support longevity in a bleak retail environment.

Next: A retailer that tried and failed to win back customers

11. Crocs

Crocs hanging in a store

Stores are shutting down after losing millions of dollars. | Cate Gillon/Getty Images

Crocs lost nearly $44.5 million in the fourth quarter of 2016. As a result, the retailer announced plans to shut down almost 160 stores by the end of 2018. The quirky shoe brand has attempted to revitalize consumer interest by introducing a new line of shoes, including ballet flats, pumps, and wedges.

Next: This popular retailer is stuck in the past.

12. Abercrombie & Fitch

Abercrombie & Fitch

The former teen icon has seen better days. | Justin Sullivan/Getty Images

It was once cool to sport the same ripped jeans and popped collars Abercrombie models advertised in every mall nationwide. But like the fashion trend, the store’s brand has fallen by the wayside. Despite its attempts to modernize store layouts and rebrand clothing, profits are way down.

It has been forced to shut down about 60 physical locations in 2017. And some say the company’s website is telling of its failed attempts to remain relevant in the fashion world. Deeply discounted items and outdated clothing are not-so-subtle hints of a near demise.

Next: A children’s retailer offering one last snub to customers

13. Gymboree

Gymboree children's store

It will try to remain in business. | Spencer Platt/Getty Images

It’s no longer fun and games for children’s retailer Gymboree. It filed for bankruptcy earlier in 2017 and announced 350 store closures, roughly a quarter of its total locations. But if you think you can score one last bargain at one of these stores, just wait. In one last snub to customers, Gymboree noted it will not be accepting certain coupons for additional savings at any of its closing stores.

Next: A shoe store that’s shifting focus

14. Payless

payless shoe source

The retailer plans to close 400 stores. | Donald Bowers/Getty Images for Payless ShoeSource

Payless was once the go-to destination for discount shoes. But it failed to attract a steady stream of bargain shoppers as online retailers have undercut the competition. Payless plans to close 400 of its weaker stores and file for bankruptcy, so it can invest in areas it believes will deliver growth. It aims to expand into places, such as Latin America, bolster its online presence, and shake up its product offerings.

Next: A mall staple on the verge of breakdown

15. Claire’s

claire's

The tween haven is on the decline. | David McNew/Getty Images

Claire’s used to be the premier destination for teenage mall rats looking for cheap jewelry and cosmetics. But the rise of online shops has affected its profits immensely. Decreased mall traffic has Claire’s fighting with other discount fashion retailers for consumer loyalty — a battle Claire’s is losing. According to Business Insider, credit consulting firm F&D Reports predicts the retailer could be the next vulnerable company that succumbs to closures if something isn’t done to reroute its downhill trajectory.

Follow Lauren on Twitter @la_hamer.

Additional reporting by Ali Harrison.

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