A popular bakery with 1,000 stores makes an unexpected closure, with the CEO now admitting that some locations were a ‘mistake’.
A slowdown at Crumbl Cookies caused the store to close seven locations last year and additional stores in 2024.
The popular sweet treat store recorded a notable drop in average revenue and net profit in the past year, QSR reported.
This required the shop to make some executive changes, closing locations for the first time since opening in 2017.
In 2023, four shops were closed in California, one in Florida, Georgia, and Utah, per its franchise disclosure document, reported QSR.
Additional stores closed in 2024, with one shop in Bellevue, Tennessee, reported Williamson Source.
And in February, Crumbl Cookies bid farewell to its Victorville, California location.
The store was reportedly closed due to underperformance, Victor Valley News Group reported.
It had been open since July 2022.
The chain’s 1,000th shop opened the same month in Burbank, California, reports The-Sun.
It recorded 970 units nationwide in 2023, reported QSR.
Crumbl plans to open 122 more stores in 2024, per its FDD, marking its lowest output since 2020, compared to 184 new stores in 2023 and 363 new stores in 2022, reported QSR.
Amid the closures, the chain bought a franchised unit in California, marking its second company-owned location.
In an attempt to improve sales, the cookie company expanded this year to offer desserts like Cinnamon Squares, Tres Leches Cake, and Carrot Cake, according to QSR.
But Crumbl has said the closures have been part of its plan all along.
Crumbl’s CEO Jason McGowen told QSR in 2023 that this was a planned slowdown to help the company take a breather, attract more customers and expand into international markets like Canada and the U.K.
“It’s an interesting strategy, and we think it’ll pay off,” McGowan told QSR.
“And again, we don’t think it’s going to be perfect. We think there may be a mistake on a store location or that sort of thing.
But I think we got to a really good spot and I think we nailed the first phase of the strategy.
So now it’s going to be a little bit more strategic on where we place locations, the timing,” he said.
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Also Read: Three Massive Bank Branches Are Now Closing in California
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Another massive retailer is now closing 15 stores this year after its CEO announced that it would be shuttering traditional locations.
Best Buy is closing 15 stores nationwide this year, and fans are not happy about it.
The company’s chief financial officer (CFO) made the announcement during an earnings call in March that the chain will “continue to close existing traditional stores.”
It comes after Best Buy shuttered 24 locations in 2023.
This year, the electronics retailer will undertake “a rigorous review of stores as their leases come up for renewal.”
Some of these 15 stores have already closed, including one in Wooster, Ohio, and one in Apple Valley, California.
Customers have expressed their feelings about the shutterings on social media.
“Different era, different time,” wrote one on Facebook. “Same business model, it was inevitable.”
“We were shocked to see the Kildeer, Illinois location closed and I saw them removing the sign the other day,” said another.
Best Buy CEO Corie Barry shared more about the company’s future plans during last month’s earnings call.
She said the chain will “open small locations in a couple of out state markets.”
Since then, Best Buy’s famous Geek Squad division was scaled-down with a layoff announcement.
However, Best Buy is far from the only major retailer closing stores this year.
Shoe store Footlocker is in the process of closing 400 locations by 2026.
Most of these stores are in shopping malls, which have seen a decline in traffic in recent years.
Bath and Body Works is another mall staple that is trimming down its physical retail presence
In 2023, it announced the closure of approximately 50 locations.
Meanwhile, dollar stores are having a tough time, despite many Americans tightening their belts.
Family Dollar will be closing nearly 1,000 locations, with 600 of these shuttering by the first half of 2024.
Meanwhile, 99 Cents Only is set to close down 371 stores due to bankruptcy.
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Also Read: A Giant US Company Now Declares An Unexpected Bankruptcy
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