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WWD is reporting that Guess will be closing 50 of its 488 North American stores by the end of the current fiscal year. Paul Marciano, co-founder and CEO of the company, told the trade publication that the closings are part of an attempt to "adapt to the new normal of retail today."
That new normal is, presumably, e-commerce, where Guess reported a 47.8% increase to $15.2 million in total sales online. However, this is likely not the end of the closings for Guess' brick-and-mortar locations. "In addition to these 50 stores, 50 percent of our North American store base will come up for renewal in the next three-and-a-half years, which will give us flexibility to optimize our real estate portfolio," Marciano said. In other words, they'll be evaluating which stores are worth the lease renewals, and which ones aren't.
· Guess to Trim 50 Stores From Fleet [WWD, sub req]
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