If you had to tell people about a discount store chain in the U.S., you might say Marshalls, right? This is very popular, but it has surprised many people in California when two of Marshalls’ most important stores were permanently closing. These stores were located in Hollywood and San Jose, two very busy places thousands of people visited every day. As you can imagine, people buying there and workers have been affected by this decision, so let’s learn more about why this happened.
Bye to two Marshalls stores in California
Marshalls decided to close two stores that, although they weren’t that much big, were very popular and many people bought there. The first store was located in Hollywood, the popular 7013 Hollywood Boulevard address, near iconic tourist places like Madame Tussauds and the TCL Chinese Theatre. This store was part of the area and its closure surprised so many people.
The second store was in San Jose, one of the largest cities in California. Both stores had a crucial role in their local communities, so the impact of the closures was significant.
Jobs lost
Not only did the Marshalls closure affect customers, but also workers. According to documents sent to the Worker Adjustment and Retraining Notification (WARN) program, 62 workers in Los Angeles and 64 workers in San Jose lost their jobs as a result of the closures. In total, 126 people were unemployed.
Marshalls explained the decision by saying the company is regularly reviewing its real estate strategies. Basically, the company is always reviewing which stores must continue functioning, which should close, and how they have to better manage their locations.
New Marshalls stores
Even though Marshalls closed two important stores, it doesn’t mean the company is reducing its presence. The chain, which belongs to TJX Companies, stated that it continues expanding.
So, while some stores are closed, Marshalls will open 14 new stores in other areas. This shows that it’s a strategic change: closing stores where they don’t function that well, and opening new ones where they might have better results.
Although some customers lost their local store, others will soon have a new Marshalls store near their homes.
A larger retail crisis
These Marshalls closures are not the only ones happening in the U.S. The retailing sector in this country has been going through a deep transformation since the 2020 pandemic. For example:
- Consumer habits have changed, with more people shopping online.
- The cost-of-living crisis has made it harder for families to spend money in physical stores.
- Retail chains are facing financial pressure, leading to store shutdowns.
Now, let’s see come companies that have recently experienced the same difficulties:
- At Home, which closed at least 29 stores.
- Claire’s, which nearly disappeared completely and still lost almost 300 locations even after a major buyout.
- Forever 21, which announced it would close its stores across the country after filing for bankruptcy.
This proves that even popular and established brands are dealing with a complicated market situation.
Customers
For regular Marshalls customers in Hollywood and San Jose, the closures mean losing a place to buy clothes, home products, and enjoy discounts. Most people visited these stores because of their low prices and their wide variety of products.
However, beyond the local impact, these decisions represent something deeper: the reality of the retailing sector is changing. Physical stores are not as safe as they once were, and even long-established brands are being forced to adjust to new markets, new customer habits, and economic challenges.
So…
We’ll see if this strategic decision is a positive change for Marshalls, since it’s losing customers in two important places. What do you think about what’s happening with the retailing sector situation?