Hello Folks. Hold onto your shopping bags because we’ve got some eye-opening news about the retail landscape in 2024.
Retail chains are closing stores at an alarming rate, with nearly a quarter more closures this year than last year.
According to CoreSight Research, which monitors store closures and openings, almost 3,200 brick-and-mortar stores have closed their doors so far this year. That’s a whopping 24% increase from 2023!
But that’s not all. While closures are skyrocketing, new store openings are on the decline, with about 4% fewer openings announced compared to this time last year. So, what’s driving this retail apocalypse? Let’s break it down.
A combination of factors is forcing retailers to shutter their stores. Bankruptcies, inflation, and a surge in shoplifting are making it prohibitively expensive to keep physical stores open. Organized retail theft rings are wreaking havoc, creating an urgent problem for both big retail chains and small businesses.
On top of that, more and more customers are choosing to shop online at giants like Amazon. This trend, which has been growing over the past two decades, is drastically reducing foot traffic in traditional stores.
Let’s talk specifics. RiteAid and Rue21 have both declared bankruptcy. Rue21 blames inflation and is laying off all 4,900 of its employees. RiteAid is closing 165 stores this year alone. Drug stores and pharmacies have been hit hard, resulting in about eight million square feet of closed retail space in the U.S. this year.
Dollar Tree is closing more than 600 Family Dollar locations, citing inflation and shoplifting as the culprits. Tupperware is shutting down its only U.S. factory in South Carolina, laying off all 148 workers and moving production to Mexico.
Retailers Closing Nearly 3,200 Stores, Up From Last Year: Survey: Retail chains are closing thousands of stores this year, nearly a quarter more than by this time last year, a new survey shows.
Companies are announcing the closures of almost 3,200… https://t.co/IeaD4GmvNn pic.twitter.com/wScVq032wy
— JPNWMN (@JPNWMN) June 19, 2024
Other retailers joining the closure parade include 99 Cents Only Stores, CVS, 7-Eleven, Express, Walgreens, and Macy’s, to name a few. Even with these closures, some chains are still expanding. Dollar General plans to add over 800 new locations this year, and 7-Eleven is opening more than 270 new stores. Five Below is also growing, with plans to open 227 new stores.
Now, let’s talk about the elephant in the room: inflation. The skyrocketing inflation of recent years has driven up prices for everyday necessities like food, gas, and housing. Since January 2021, prices have increased by a staggering 20%. Although inflation has fallen from its peak of 9.1% in June 2022, it remains high at about 3.3%, well above the Federal Reserve’s target of 2%.
So, folks, the retail world is undergoing massive changes. Keep an eye on these trends, as they’re likely to impact where and how we shop in the coming years. Stay tuned for more updates on this evolving story.
