A slew of U.S. retailers have announced plans to shutter over 7,100 stores by the end of November 2024, a jaw-dropping 69% increase compared to last year, according to research firm CoreSight. An additional 45 retailers have filed for bankruptcy so far this year—nearly double the 25 bankruptcies in all of 2023. So far it’s shaping up to be a not-so-happy holiday season.
The closures come at a time when consumer spending remains solid enough to fuel economic growth, yet cracks are starting to show. Inflation-fatigued shoppers are scaling back, focusing on discounts or becoming more strategic in hunting for deals.
Some major players like Walmart are weathering the storm (despite shuttering about a dozen stores by the end of the month). But others, like Target, aren’t faring as well—recently missing quarterly sales and earnings expectations. Family Dollar and CVS Health are also feeling the pinch, with both companies leading the pack in store closures. Big Lots, Conn’s, rue21, 7 Eleven and Rite Aid also faced closures in the hundreds.
CoreSight’s data reveals that discount chains and drugstores top the list of closures, but the pharmacy sector faces a unique, long-term challenge. Since 2019, over 7,000 pharmacies have shut their doors, leading to “pharmacy deserts” in parts of the U.S. where residents now struggle to access essential healthcare products and prescriptions.
Not all the news is grim, however. Discount chains like Dollar General and Dollar Tree are actually thriving, and they are planning to open hundreds of new locations in 2024. This points to a broader shift toward budget-friendly retail options as consumers navigate economic uncertainty.
The retail sector might stabilize in 2024, but experts warn of more closures looming in 2025. For now, it’s a rollercoaster ride with no clear end in sight.