The nation's largest Christian retailer will be closing all 240 stores in the near future as the challenging brick-and-mortar retail environment continues to collapse under the pressure of growing internet presence. Changing consumer behaviors, declining sales and an inability to price compete in the overall marketplace were reasons given for the closure.
At its height, Family Christian Stores represented over 30% of physical sales for many Christian music releases. The retail chain's dominance in the Christian book and music market began to steadily decline with major retailers like Wal-Mart adding key Christian releases to their shelves, along with the launch of iTunes in 2001 and the growing presence of online retail led by Amazon.
"We had two very difficult years post-bankruptcy," said Chuck Bengochea, company president, in a statement. "Despite improvements in product assortment and the store experience, sales continued to decline. We have prayerfully looked at all possible options, trusting God's plan for our organization and the difficult decision to liquidate is our only recourse."
NewReleaseToday's roots are closely tied with Family Christian Stores. NRT's Founder, Kevin McNeese, started the site at the height of the online boom in 2002 while managing music marketing at
FamilyChristian.com. "It was such an incredible time," recalls Kevin. "But I could certainly see the beginnings of the shift. Between Napster's quick rise and fall, Apple launching the iPod and iTunes and major retailers beginning to latch onto our biggest products, the writing was on the wall."
"Family Christian has always been powered by tremendous men and women dedicated to getting important Christian resources into the hands of consumers," continued McNeese. "I was honored to work for over seven years for the company and I know today is an extremely sad day for many that have been dedicating their days, months and years to avoiding this outcome. I'll be praying for new opportunities for the thousands that will be losing not just a job, but a place in the ministry field."
Family Christian Stores employees more than 3,000 people in 240 stores across 36 states, including their home office in Grand Rapids, MI. No date has been announced for the company's liquidations at their stores.
