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By Aliss Higham

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What's New

Thousands of retailers have announced closures across the U.S. in 2024, with a 69 percent surge on the number of shuttered stores in 2023.

Why It's Important

Numerous major retailers have announced store closures in recent years, but the huge surge is the largest seen since the start of the coronavirus pandemic. In 2020, there were 3,704 store openings and 9,698 closures, resulting in a net loss of 5,994 stores, according to research conducted by Coresight.

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By 2021, things were looking better, as the net store closures had significantly decreased to just 180, with 5,228 total retail closures recorded. In 2022, store openings surged to 5,394, surpassing 3,819 closures, making a net gain of 1,575 stores. And last year, there were 5,843 openings and 5,548 closures, resulting in a net increase of 295 stores.

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What To Know

According to recent data from Coresight, U.S. retailers have projected over 7,100 store closures by the end of November 2024, marking a 69 percent increase compared to the same period in 2023.

While the economy is faring better now than it has in recent years, some retailers have been struggling to recover from pandemic era changes and heightened inflation. The rise of e-commerce, spurred on by coronavirus lockdowns, as well as consumers spending less and being more selective about their purchases, are both contributing to the problem.

Some of these closures are due to bankruptcy and liquidation, such as Big Lots, Rue21, and Rite Aid, while others are enacting longstanding plans to reduce their physical footprint, such as CVS Health, which announced in 2021 that it would close nearly 900 stores between 2022 and 2024.

Pharmacy closures have been considerable, with CVS Health closing 586 stores, Rite Aid shuttering 408, and Walgreens pulling away from 259 locations, according to Coresight.

The following major retailers have all closed stores in 2024:

• Family Dollar
• CVS Health
• Big Lots
• Conn's
• Rue21
• 7-Eleven
• Rite Aid
• 99 Cents Only Stores
• American Freight
• Walgreens
• DK
• LL Flooring
• Footlocker
• Express
• Alimentation Couche-Tard
• Dollar General
• Macy's
• The Body Shop
• Save A Lot
• Bath & Body Works
• Dollar Tree
• Soft Surroundings
• Sam Ash Music
• Sleep Number
• Burlington Stores
• Stop & Shop
• Office Depot
• Ted Baker
• Carter's

What People Are Saying

USA Today business editor Charisse Jones told CBS Mornings Plus: "Inflation is really having an impact. People are shopping, they're spending their money, but they're often going for the essentials. And when they do want the extras, they're going where they can get the best deal or where they can have the most fun experience. All of those factors are contributing to some retailers doing really well and some really struggling."

Brandon Svec, national director of U.S. retail analytics for CoStar Group, said earlier this year: "It's not, in my opinion, a resumption of the retail apocalypse that we saw in 2018, 2019, 2020 where we were seeing so many stores closed. There are still a substantial amount of tenants from a broad range of sectors looking for space. And the longer-term imbalance between the space needed in retail and the space that we have, I don't think has shifted."

What's Next

The horizon for bricks-and-mortar retail is a mixed bag. Several of the listed retailers plan to continue with closures in the coming years, with Walgreens confirming it will shut down 1,200 stores over the next three years, and 7-Eleven will close more than 400 stores worldwide. However, it is planning to open an additional 600 fast-casual food spots across North America by the end of 2027.

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