The retail world is shifting gears in 2024, with major businesses adjusting to the rapidly changing marketplace. With inflation influencing shopping habits, there is a 4% drop in new store openings and over 3,200 closures.
Walmart
Even though Walmart is one of the largest retailers, it is undergoing major difficulties this year. One of the key issues was underperformance which led to the stores not meeting the financial margins. This resulted in the closure of 11 stores across the United States. Along with this, the company also closed 51 of its health centers with distinctive cuts to its flagship across the country.
The Body Shop
The Body Shop, a cosmetics brand headquartered in the UK, closed all of its US-based locations. The Body Shop has struggled in the last few years and has changed management several times. The changing retail conditions along with a high inflation rate led to this decision. The company also decided to close dozens of store locations in Canada and 75 stores across the UK. The company has filed for bankruptcy in Belgium and Denmark.
Dollar Tree and Family Dollar
The Family Dollar company had to close 600 stores this year because of inflation. The company has also announced an additional shutdown of 370 Family Dollar stores along with 30 Dollar Tree locations after the leases expire. More price-conscious consumers and increased shoplifting have further impacted the profits leading to these difficult decisions.
Express
Sales at Express have undergone a huge decline in recent years. The increase in debt along with the lease fees in malls negatively influenced the business. It resulted in Express having a total of $1.2 billion in debt. Due to this, the business was forced to file for bankruptcy and close nearly 100 stores across the U.S.
Best Buy
In 2023, the electronics company Best Buy shut down about 24 shops. Despite strong sales in the last quarter, driven by the holiday season, the company is planning to close another 10 to 15 stores by 2025. The decision is based on the need to strike a balance between employee interests and those of consumers.
Rite Aid
Rite Aid faced intense competition from retail stores like Walgreens, CVS, and Target. This resulted in the shutting down of 520 stores since filing or reorganization in October. This comprises a quarter of its location. Most of the closing stores are located in the company’s home state, Pennsylvania, and neighboring areas, with over 100 also in California. The company faced challenges in profitability which led to its bankruptcy.
Neiman Marcus
Following the announcement of the Covid-19 pandemic, all 67 stores of the Neiman Marcus group shut down. The company which mainly dealt in luxury goods had a $5 billion debt. They could not sustain its payments as closures dragged on due to which they declared bankruptcy. This helped in reducing its $4 billion debt and securing $675 million in new financing to navigate the bankruptcy process.
Rue21
Rue21, a Warrendale, Pennsylvania-based retailer, faced bankruptcy in 2024. However, this is not the first time the company has come across such a situation, having filed for the same in 2003 and 2017. As a result, 400 stores were closed, helping in the reduction of $700 in debt. In this year, the company still has $194.4 million in debt, influencing its business decisions.
Macy’s
Macy’s stated the news of closing its 150 stores over the next few years. Notably, local locations at Crossgates Mall and Colonie Center will remain open. The company aims to cut “unproductive” stores and prioritize investments in the luxury sector.
JCPenney
J.C. Penny closed four stores across the states. The store locations consisted of Mobile, Alabama; Wichita Falls, Texas; and Waterville, Maine. The only exception is the Annapolis, Maryland store which is supposed to close in 2025. Despite closing a store at Wayne Towne Center in New Jersey, J.C.Penny opened a new location at Willowbrook Mall but could not find new sites for closing stores.
CVS
In 2024, CVS Health intends to shut down 300 or more locations inside Target stores. To make the pharmacies in the best possible location, the shutting of the present locations has been decided. Additionally, the business stated the workers who were affected by the layoffs will be given equal opportunities at the CVS. This move is a part of the strategy of CVS to reduce its retail footprint and transform it into a major healthcare company.
Tupperware
The final Tupperware production facility in the U.S. is closing. The company is relocating its operations to Mexico, affecting over 100 workers. September would mark the beginning of the closure which would end in January 2025. The Hemingway plant was sold last year, resulting in the process for the U.S. and Canada made in Lerma, Mexico.
Walgreens
This year, Walgreens will close more than 150 locations across the country. It includes the closing of primary locations like Grand and Martin Luther King Jr. Boulevards in April. This closure has left many customers scrambling for alternative prosecution plans. The company has acknowledged the impact on the community, emphasizing its commitment to smooth transitions for both its customers and employees.
99 Cents Only
The nationwide shutdown of the 371 stores of 99 Cents Only stores happened in 2024. The company’s interim CEO Mike Simoncic expressed regret over the decision, citing challenges such as COVID-19, changing consumer preferences, inflation, and increased shrinkage. This brand will shut down after the stock at these stores is liquidated.
7-Eleven
7-Eleven is closing 272 locations across America in 2024, an increase from 184 closures in 2023. As of April 2024, there are over 9000 stores around the country apart from the closed stores. The convenience store chain also plans to open more locations this year to balance its footprint amidst changing consumer habits and economic challenges.