Important Takeaways:
- Denny’s has abruptly announced the closure of 150 locations in an effort to counteract poor sales.
- The chain announced 50 store closures are set to take place this year and the remaining 100 locations will be shut in 2025.
- The news comes after 15 of the chain’s locations closed this summer alone and 70 in total have closed in the last two years.
- Previously, inflation was blamed as a significant factor for the recent closures.
- Steve Dunn, Denny’s executive vice president and chief global development officer, has now said the affected planned locations are either too old to be remodeled or in areas that have become unprofitable.
- Many dine-in restaurants have felt the effects of changing consumer habits as money gets tighter and habits changed post pandemic.
- Stores like Denny’s have begun releasing offer value options to lure in customers, such as Applebee’s ‘Whole Lotta Burger’ with fries deal for $9.99 and Chili’s $10.99 burger meal that is bigger and cheaper than the Big Mac.
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Revelations 13:16-18 “Also it causes all, both small and great, both rich and poor, both free and slave, to be marked on the right hand or the forehead, so that no one can buy or sell unless he has the mark, that is, the name of the beast or the number of its name. This calls for wisdom: let the one who has understanding calculate the number of the beast, for it is the number of a man, and his number is 666.”
Important Takeaways:
- 50k stores could close in five years due to a slowdown in consumer spending, ecommerce demand
- More than 50,000 retail locations could permanently shut their doors over the next five years, according to UBS analysts. Those closures would cut the current U.S. store count of about 940,000 by around 5% by the end of 2027, according to the analysts.
- A slowdown in consumer spending and tighter credit, coupled with a rise in e-commerce penetration, is expected to sharply accelerate store closures, with mom-and-pop shops most at risk given their lack of capital, according to a research note from a team led by UBS Equity Research Analyst Michael Lasser.
- UBS warned that a protracted recession could damper sales growth and cause upward of 70,000 to 90,000 store closures.
- The number of shuttered stores is “already up significantly” in 2023 compared to last year, due to heavy hitters like Bed Bath & Beyond, Foot Locker and bankrupt Tuesday Morning trimming their footprints.
- CEO Doug Wood of Oxford Industries unit Tommy Bahama told FOX Business he isn’t surprised by the UBS report, saying this is a “natural part of the retail cycle.”
- “You get your best apples when you prune the tree,” he said. “That’s how I look at it … you’re going to prune any underperforming stores that are not meeting consumer or market demands, does help the overall market.”
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