Say it isn’t so!
Late yesterday evening, I revealed on Level21 Magazine’s website that popular teen-centric retailer Wetseal suddenly announced that it is closing all of its doors, forever. The contemporary clothing company sent a letter to all of its employees late last month, warning them of the imminent termination of business and that layoffs would ensue. Some sources allege that Versa Capital, its parent company could not find a suitable partner to salvage the mass merchandiser. But sadly, as most store closings, this did not happen overnight. About two years ago, Wetseal shut down about two-thirds of its doors and laid off close to 3,700 laborers.
Once a cult favorite, Wetseal attributes the significant financial blow leading to all 177 of its doors closing, to the lack of foot traffic. Swapping immediate gratification for virtual convenience, many shoppers are responsible for the spike in online shopping. Reportedly, the store was also no match for its competitors. Fast-fashion retailers such as Zara and H&M dominated the very same youthful market that Wetseal were once proud to consider their own. What is also unsettling, is that other stores may face the same fate. if they cannot anticipate the needs of their customer, as in forecasting what the masses want, many more chain stores will find themselves putting “EVERYTHING MUST GO” signage in their windows.