Some of the biggest retailers and restaurants have been forced to file for bankruptcy and shut down locations in the United States, marking a rather difficult year for various businesses.
While there are a variety of different factors that are to blame for these closures, analysts have pointed to low customer traffic and high inflation as to why many companies are struggling to adapt to a new and shifting landscape.
More U.S. Stores Are Closing This Year
Throughout 2024, more store closures have been seen than store openings. According to data from CRE Daily, this is a new trend that wasn’t seen in previous years, such as 2023 or 2022.
In 2023, more than 4,000 stores revealed that they would be shutting doors. Last year marked a huge increase in store closures — the data was two times higher than in 2022 — and new data indicates that 2024 may only continue to experience even more closures.
Various companies in different industries have seemingly struggled to adapt to new business trends this year. An ongoing period of high inflation — which has raised the price of goods and labor — has caused many customers to cease spending as they previously did. As a result, customer traffic has fallen in retail stores and restaurants alike.
Now, major retailers have been forced to either file for bankruptcy or shutter stores — or both. The drugstore industry has greatly suffered, as both CVS and Walgreens have recently announced drastic changes they will make.
While CVS has fired its CEO, cut jobs, and announced it will close 900 stores by the end of the year, Walgreens has been forced to file for Chapter 11 bankruptcy. Walgreens has also revealed it will close the doors of about 500 locations.
Other businesses have also struggled. 7-Eleven is closing hundreds of underperforming stores, while department stores such as Macy’s continue to struggle. Meanwhile, Joann’s has filed for Chapter 11 bankruptcy after 81 years of business.
Home goods and furniture retailers have also been hit extra hard this year, as consumers are refusing to cough up extra money to pay for large investments, such as new furniture sets. As a result, places like Conn’s have announced that it is closing down 70 stores located throughout the country.
Even grocery stores haven’t been able to stay afloat during this difficult time. Many Northeast shoppers were shocked when they learned that Stop & Shop had decided to quickly shut down about 32 stores before the year was up.
Restaurants Continue to Close
Retailers aren’t the only ones hurting. Restaurants and fast food chains have also greatly suffered this year — and may only continue to.
Most notably, Red Lobster filed for bankruptcy earlier this year. This filing also led to various Red Lobster restaurants around the country shutting down.
TGI Friday’s, another favorite in the United States, has also revealed that it would have to shut down various locations around the country because of the shifting business landscape.
As the country continues to struggle with high inflation and other difficult factors, Americans may become all too used to seeing once beloved restaurants and retailers shut their doors for good.
