MOVING ON
Major department store forced to close all 300 locations after bankruptcy sees shop replaced by outdoor retailer Sierra
Bosses made a strategic move with the new location
THE mass closure of hundreds of stores was sparked when Stein Mart filed for bankruptcy.
The Florida-based department store chain shuttered all of its nearly 300 locations after the 2020 Chapter 11 filing.
2
2
Stein Mart CEO Hunt Hawkins confirmed the bankruptcy of the 112-year-old company at the time, blaming changing customer habits and the pandemic.
These two factors "caused significant financial distress on our business," he said.
The chain that started in Mississippi in 1908 has since moved entirely online with no brick-and-mortar locations.
Now, one of the vacant Stein Mart locations in Kansas City, Missouri, is being taken over by a rival retailer, according to The Kansas City Star.
read more on retail
Stein Mart occupied the space in Orchard Corners Shopping Center in Lenexa, Johnson County since 2009.
It was open for just over a decade before bankruptcy closed its doors for good.
Now outdoor retailer Sierra is set to move in, doubling its operational footprint in the area.
Its original Kansas City store opened in Overland Park's Bluhawk site in May.
Most read in Money
TAKEOVER
In Orchard Corners, the activewear store will be well placed in the shopping center with fellow stores TJ Maxx and HomeGoods on either side.
All three retailers are owned by TJX Companies which also owns Marshalls and Homesense.
Carpetright on the Brink: The Future of 272 Stores
TJX manages over 20 locations in the Kansas City area and thousands more across numerous countries.
Sierra started operating under TJX in 2012 and is its second-smallest brand after Homesense.
Plans for the retailer's move into the 19,104-square-foot space are currently with the city's planning commission.
Block & Co. Inc. Realtors President David Block acted as the landlord during negotiations for the lease.
Meanwhile, pet supply store Petco has submitted plans to move into the other half of the empty Stein Mart space, according to The Star.
The full lot was a whopping 36,838 square feet and was briefly held by Spirit Halloween which had a temporary lease there after Stein Mart moved out.
Sierra has around 100 locations across the country including in Wyoming, Colorado, Iowa, Nebraska, Illinois, and Minnesota.
The retailer previously operated under the name Sierra Trading Post which it shortened in 2019.
The U.S. Sun has reached out to the retailer for comment.
Read More on The US Sun
Meanwhile, customers of another retailer have been left asking "Where will we shop" after a Marshall's rival announced mass closures.
The news also came with an ominous outlook for the future as numerous retailers struggle to fight inflation, increased labor costs, and changing consumer habits.
At least 1,000 dollar stores to close, CEO says
Dollar Tree, the parent company of Family Dollar, revealed it would close around 1,000 stores in the coming years.
The company announced in March that it will shutter the stores after the discount retailer it acquired nearly a decade ago plummeted in value.
Dollar Tree plans to close about 600 Family Dollar stores in the first half of this year.
This will be followed by the shuttering of 370 Family Dollar and 30 Dollar Tree stores over the next several years.
The chain of discount variety stores has also indicated that sales are being affected by the cost-of-living crisis and inflation.
But USA Today added that Dollar Tree has also been rocked by reduced government benefits for the Supplemental Nutrition Assistance Program.
This has left families struggling to juggle finances, with as much as $250 less per month.