Ascena ramps up cost-cutting efforts, adding store closures
Like other brick and mortar retailers nationwide, Ascena Retail Group, Inc. (NASDAQ – ASNA) struggled financially during its most recent quarter. The company experienced a 10.4 percent traffic decline across all of its segments, and comparable sales dropped 8 percent across the portfolio, said Chief Financial Officer Robb Giammatteo.
“Make no mistake, we were very disappointed with our performance in the quarter,” President and Chief Executive Officer David Jaffe said during a Thursday conference call, explaining that Ascena is struggling with “an accelerated shift in consumer demand to e-commerce.”
In reaction to the difficult sales environment, the company announced a program to close or renegotiate leases for hundreds of its stores. They include the closure of 268 storefronts plus efforts to renegotiate lease/rent terms at 399 others by July of 2019.