Tuesday Morning Is Closing Locations Amid "Challenging Environment"
YOU LOCAL STORE COULD BE THE NEXT TO GO, AS EXPERTS SAY MORE CLOSURES ARE ON THE HORIZON.
When you're in the market for home décor but not in the mood to break the bank, Tuesday Morning is a reliable shopping destination. These stores are the perfect spot for unique finds, especially because you know that inventory will be different every time you walk through the door. But now, Tuesday Morning has announced that it will be closing some of its locations—meaning yours could be shuttering soon. Read on to find out which stores are getting the boot amid the "challenging consumer environment."
READ THIS NEXT: Jo-Ann Fabrics Is Closing Stores, Starting Jan. 22.
Tuesday Morning has been struggling.
Meredith Heil / Shutterstock
Tuesday Morning has seen better days.
In a Nov. 22 press release, the company announced that same-store sales were down 10.4 percent compared with the same fiscal quarter last year, and net sales dropped to $157.1 million this quarter, down from $176.9 million a year prior.
Tuesday Morning CEO Andrew Berger said that the results were "inline with expectations," based on the current "challenging consumer environment."
However, as Neil Saunders, managing director of GlobalData and retail analyst, told CoStar News, even with some losses anticipated, these declines are considerable. "The company lost $28 million for this quarter," Saunders said. "That [is] nearly half of what Tuesday Morning lost the whole of last year's fiscal year. The business isn't working."
No mention of store closures were noted in the press release, but independent locations are being shuttered across the country—and according to Saunders, more could be on the way.
A store will be closing in Tuesday Morning's hometown.
Tuesday Morning is based in Dallas, Texas, where it's now closing "one of its largest and most well-known locations" in the area, Texas News reported. An email confirmed that the store in Dallas' Preston Center will be permanently shut down, but did not include a formal date. "We're marking our entire inventory and everything has to go," the email reads, per Texas News.
The Tuesday Morning store in Preston Center is on a month-to-month lease, but has opted out of the short-term agreement, the broker leasing the property told CoStar News. The outlet further reported that the closure will leave Dallas with just one Tuesday Morning store at Hillside Village.
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Two more stores will be axed.
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Clarksville, Indiana, will lose a Tuesday Morning store as well, The News and Tribune reported. On Nov. 28, signs were posted explaining that the business is closing and offering a 10 percent discount. "We apologize," the sign read. "Due to the closing of this Tuesday Morning location this store will not receive products featured in our advertisements."
As with the store in Texas, Tuesday Morning has yet to set a closing date, but the town of Clarksville confirmed to The News and Tribune that the store will be moving out of its current location, likely at the beginning of next year.
"Tuesday Morning's lease runs out on Jan. 31 of 2023," Clarksville Communications Director Ken Conklin told the outlet. He added that a new tenant, medical testing laboratory HealthTrackRX, will be moving into the spot "when it's vacant." The town is unsure whether Tuesday Morning will seek out a new location, but Conklin said, "We know they won't be at that location."
The Tuesday Morning store in Meridian, Mississippi is also on its way out, again announced via a sign outside the store with no official closing date, ABC-affiliate WTOK reported.
Best Life reached out to Tuesday Morning for comment on the closures, but has yet to hear back.
More closures could be imminent.
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Trouble was already predicted in October when Retail Dive identified the chain as one that could file for bankruptcy in the next 12 months. Party City, Bed Bath & Beyond, and Tuesday Morning were among 10 chains with a 9.99 to 50 percent chance of going under, per CreditRiskMonitor's FRISK Scores, as of Sept. 30. Interestingly, this wouldn't be the first time that Tuesday Morning filed for bankruptcy, as they already did so in 2020.
In light of the latest fiscal results, Saunders told CoStar News that Tuesday Morning's business "shrunk quite dramatically," which could lead to even more store closures. The analyst doesn't anticipate that the number will top the amount shuttered in 2020—which was close to 200—but stated that "it's clear a lot of the stores don't work."
"They have to have a review of [the real estate portfolio]. They can't keep operating at a loss year in and year out," Saunders said. "I expect them to break some leases and continue to shrink. It's clear there's a large group of stores not making money and contributing to the loss."