Is this finally the Retail Apocalypse we have heard about for years?
Macy’s, Walgreens, CVS, Family Dollar, Walmart, and 7-Eleven are shuttering their shops. The planned closures for 2024 total 2,599, marking a 2.5% increase compared to the same period in 2023. The highest number of closures came from discount stores and drugstores.
In 2024, the retail landscape in the United States has witnessed a staggering number of closures, with nearly 2,600 stores shutting their doors within just the first four months of the year. Among the prominent names calling it quits are Macy’s, Walmart, Walgreens, Foot Locker, and 7-Eleven. However, it’s the discount stores like Family Dollar and the bankrupt 99 Cents Only that have borne the brunt of this wave, alongside drugstores such as CVS and Rite Aid.
The relentless surge in closures reflects the fierce competition retailers face from the ever-expanding realm of online shopping. According to data from Coresight Research spanning from January 1 to May 3, a total of 2,599 closures or planned closures have been reported. Recent weeks have seen an additional 12 closures, spearheaded by companies like Skechers and Save A Lot. Notably, QuikTrip and Walmart have each slated one closure.
In stark contrast to the closures, the pace of store openings has slowed, with only 3,560 new stores opening compared to the 3,824 that had been projected by this time last year. This downturn in new openings coupled with the surge in closures marks a concerning trend for the retail sector. Some have labeled it the Retail Apocalypse.
Comparing figures year over year, major US retailers have announced 2.5% more closures and a notable 9.5% fewer openings during the same timeframe. Among the retailers taking the hardest hit, Family Dollar and Dollar Tree, owned by the same parent company, disclosed plans to shutter more than 600 stores in 2024, accounting for approximately 15% of their total locations. Similarly, 99 Cents Only Store announced the closure of all 371 of its locations in April, citing high inflation and escalating theft as contributing factors.
In the initial four months of 2024, American retailers have shut down or slated closure for approximately 2,600 stores:
| Retailer | Number of Closures |
|---|---|
| Family Dollar and Dollar Tree | 620 |
| 99 Cents Only Store | 371 |
| CVS | 315 |
| 7-Eleven | 272 |
| Rite Aid | 165 |
| Express | 105 |
| Walgreens | 77 |
| Macy’s | 51 |
| The Body Shop | 51 |
| Soft Surroundings | 43 |
| Sleep Number | 40 |
| Burlington Stores | 39 |
The challenges faced by major drugstores are also evident in the significant number of closures witnessed this year. CVS, Rite Aid, and Walgreens have collectively closed hundreds of locations. Rite Aid, in particular, declared bankruptcy in October, resulting in the closure of 431 stores since then. This struggle is attributed not only to competitive pressures from online giants like Amazon but also to the presence of big-box chains such as Walmart and Target.
Furthermore, Rite Aid has grappled with unresolved lawsuits accusing the company of overprescribing opioids, adding to its financial woes. In April, the fashion retail sector witnessed its own share of turmoil as Express filed for Chapter 11 bankruptcy, signaling its intent to close over 100 stores. This move underscores the broader challenges faced by brick-and-mortar retailers in adapting to changing consumer preferences and market dynamics.
As the retail landscape continues to evolve, the surge in closures and bankruptcies serves as a poignant reminder of the industry’s ongoing struggle to navigate the shifting tides of commerce in an increasingly digital age.
