Gabe's, a well-known discount store chain, has recently closed two of its four locations in southern New Jersey due to low sales. This decision affects half of its stores in that area.
Gabe's Closes Two Stores Due to Losses
Gabe's, the discount retailer known for selling name-brand clothing and housewares, is closing two of its stores in South Jersey. The stores opened six years ago in Cherry Hill and Mount Laurel and have suffered from poor sales and consistent losses.
The company, headquartered in West Virginia, has pointed to disappointing performance as the reason for the closures. The affected locations are the Cherry Hill store at 2232 Route 70 and the Mount Laurel store at 1160 Nixon Drive. Both stores are scheduled to close permanently on August 12.
This decision follows the filing of WARN (Worker Adjustment and Retraining Notification) notices earlier this month.
Gabe's, a discount retailer, is closing two of its stores in South Jersey, affecting dozens of employees. The Cherry Hill store, located in a space that once housed a Sears Outlet, will lay off 28 workers. Similarly, the Mount Laurel location will lay off 24 employees. Both stores opened in 2018.
As part of the closure process, Gabe's is offering employees severance pay equivalent to one week for each year they have worked with the company, as outlined in the WARN (Worker Adjustment and Retraining Notification) notices.
Despite these closures, Gabe's continues to operate two other South Jersey stores in Vineland and Mays Landing, which are not currently affected by these changes. The company maintains a presence in 20 states across the country.
Also Read: Ex-CEO Urges Starbucks to Revamp Strategy as Customers Flock to DIY Coffee
Gabe's to Lay Off 52 in Store Closures
Discount retailer Gabe's is set to lay off 52 employees after two of its stores in South Jersey are closed.
The layoffs will impact 28 employees in Cherry Hill and 24 in Mount Laurel, with the job cuts taking effect on August 12. The company closed these stores because of poor sales and continuous financial losses.
In the WARN notice, Anna Ballard, senior corporate counsel for Gabriel Brothers, Gabe's parent company, stated that the affected employees would be compensated with pay and benefits for 90 days. Their final pay period will end on August 9.
Additionally, each employee will receive a severance package, which includes one week of pay for each full year they have worked at Gabe's.
According to The U.S. Sun, Gabe's isn't the only retailer experiencing a downturn in customer visits and profits. Home Depot recently disclosed a disappointing first-quarter financial report, with sales falling to $36.6 billion, a decrease of 2.3% from last year.
Additionally, comparable sales within the U.S. dropped by 3.2%. Ted Decker, the CEO of Home Depot, attributes much of this decline to unfavorable weather conditions and a delay in spring, which negatively affected sales of seasonal products. He also noted a decrease in spending on larger, discretionary projects.
In the restaurant sector, turmoil is brewing at Red Lobster as customers seek refunds for gift cards amidst fears of the chain going bankrupt. This concern escalated after Red Lobster abruptly closed 87 locations nationwide, leaving approximately 6,500 employees without jobs.
The closures and financial struggles have been partly attributed to the chain's recent promotion, the "Unlimited Endless Shrimp" for $20, which aimed to boost customer visits but may have contributed to its financial woes.
Related Article: Foxtrot Store Closures Spark Rally as Ex-Employees Seek Unpaid Wages
