Cato Corporation to close 120 US stores due to inflation and soaring costs

• Budget fashion retailer The Cato Corporation is closing 120 stores across 31 US states by the end of the fiscal year due to high inflation and elevated fuel costs.
• The company initially planned to shutter 50 locations before increasing the target by an additional 70 stores on 18 September.
• Chief executive John Cato stated that underperforming stores were unlikely to improve given persistent negative pressure on customer discretionary income.
• The store closures are expected to cost between $1m and $1.3m, but the firm believes the move will positively impact operating results from fiscal 2027.
• The decision follows a sharp fall in second-quarter net income to $1.1m, down from $6.8m during the same period a year earlier.

IN FULL

Budget fashion brand to close 120 stores across dozens of states