The American Retail Industry Is Suffering
While the US retail industry has thrived for decades, it’s become increasingly challenging to maintain the desired profit margins in recent years. Thanks to inflation, renting retail space has become far more expensive, as has the cost of goods, labor, and even utilities.
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According to one report, more than 2,800 stores closed their doors in 2023, and another 1,400 are closing this year. Although some companies are shuttering only a few locations, others are closing down completely.
Family Dollar: 600 Store Closings
As of December 2023, Family Dollar boasted around 8,000 stores around the United States. However, the company, owned and operated by Dollar Tree, has struggled to maintain sufficient numbers for years.
Source: Depositphotos
In March 2024, the company announced it would close nearly 1,000 stores over the coming years, and as of August 2024, 600 of those stores have already been closed.
CVS: 300 of 900 Stores Already Closed
Popular pharmacy brand CVS Health announced in 2021 that it would be closing at least 900 of its stores over the coming three years. The first 600 were already shut down by the end of 2023. This year, they closed another 300.
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CVS claims that its decision to shutter nearly 10% of its stores was based on current buying patterns and changing populations. The company hopes that this adjustment will ensure its continued success over the next decade.
Foot Locker: 29 New Locations and 113 Closings
Foot Locker, a beloved shoe and clothing company, has a slightly smaller operation than CVS and Family Dollar, with only about 500 locations across the United States.
Source: Depositphotos
However, the company decided this was still too many and closed 113 locations this year. It’s important to note that Foot Locker also opened 29 new locations in more populated areas and remodeled 66 others to keep up with the changing trends.
Express: Filed for Bankruptcy While Closing 107 Stores
Since its inception in 1980, Express has been a reasonably well-known clothing brand across the nation. However, in April 2024, the company sadly announced that it had filed for Chapter 11 Bankruptcy.
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Simultaneously, Express closed 107 of its more than 500 stores in the hopes of saving enough money to stay in business. Whether this plan will work remains to be seen.
Rite Aid: 700 Stores Down
Similarly to Express, Rite Aid pharmacy filed for Chapter 11 bankruptcy in October 2023 and announced that it planned to close hundreds of its “underperforming stores.”
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By April 2024, the company had closed more than 350 locations, and another 200 were shuttered before June. Now, as of August 2024, there are around 700 fewer Rite Aids than there were last year.
Macy’s: 150 Stores Closing in Three Years
Macy’s has long been an American staple. However, in February 2024, the company announced that it planned to close at least 150 locations by 2026.
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The first 50 were closed this year, another 50 will shutter in 2025, and the last 50 in 2026. Like many other companies, Macy’s believes the cost savings from these closures will help keep the remaining 350 stores thriving.
Big Lots: 35 More Store Closings in 2024
Big Lots, known for its wide variety of affordable products, announced that it would close 35 to 40 stores in 2024, in addition to the 35 locations it shuttered in 2023.
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The company said it will likely close as many as 315 stores over the next few years, 75 of which are in California.
Walmart: Closing 7 Stores but Opening 150
Walmart is the only store on this list that is closing stores and opening far more simultaneously. The hyper-successful company did announce that it would strategically be closing seven underperforming locations this year.
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However, it also plans to open an additional 150 stores over the next several years. Walmart is really the only store that isn’t struggling to maintain its profits. It’s only closing those few stores because they aren’t making as much money as the 4,600 others.
Foxtrot: 33 Locations and $35 Million Down
Foxtrot was a lesser-known convenience store chain with only 33 locations nationwide. However, as of August 2024, all 33 Foxtrot locations have been closed after the company announced they made $35 million less than they planned to last year.
Source: Reddit
A company spokesperson told the press, “We explored many avenues to continue the business but found no viable option despite good faith and exhaustive efforts.”
Experts Say Americans May Lose Up to 80,000 Stores by 2030
The more than 1,400 store closings this year only added to the thousands last year and the year before, and experts believe that retailers will continue to shutter thousands more of their locations over the next five years.
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In fact, a report from UBS Investment Bank speculates that some 80,000 retail stores will close their doors by 2030. If this estimation comes to fruition, it will undoubtedly affect the entire retail industry, the American people, and the economy as a whole.