Bankruptcy rumors surround Renner after closing 20 physical stores

The retail company Stores Renner announced the closure of 20 of its physical stores, 13 belonging to Camicado, 3 to Youcom and 4 to Renner.

This decision will impact consumers who wish to purchase products in these stores, as they will no longer be physically available. The closures also resulted in mass layoffs, impacting many employees.

This measure may have been taken based on business restructuring and optimization strategies, aiming at adapting to changes in the retail market and consumer demands.

The Lojas Renner chain reported that, although it closed the activities of 20 physical stores, it does not rule out the possibility of other closures occurring in the future. This leads to a question: what has happened?

Renner says the strategy didn't work, but he'll keep trying

Renner also highlighted that in the following months it plans to resume the volume of openings of new stores. These actions are the company's business strategies, which seek to adapt to changes in the retail market and consumer preferences.

It is common for companies to regularly assess their store portfolio and make adjustments to optimize their operations.

Despite the closure of the units, the Lojas Renner chain has expansion plans for the future, with the opening of new Renner, Youcom and Ashua stores.

This strategy seeks to meet the needs of consumers and ensure the sustainability and growth of the business in the long term.

At the beginning of the year, Renner was faced with a high inventory of parts, which led to the need to reduce it. The company decided to cancel the collection and market the winter one, following an approach that was successful in 2022.

However, it looks like things didn't go as planned for this year. Driving this change were the higher temperatures recorded in 2023 coupled with higher part values.

As a result, sales at Renner stores dropped, especially from March onwards. The company is carrying out an analysis of the performance of its stores, taking into account the flow of customers post-pandemic, which encouraged a more intense and concentrated review at the beginning of the year, as mentioned in a note company official.

Despite the setbacks, José Galló, chairman of the board of directors, indicated that the team remains working for the good of the company.

Lover of movies and series and everything that involves cinema. An active curious on the networks, always connected to information about the web.