The nation’s large brick-and-mortar retailers continue to suffer after thousands closed in 2023. According to CBS News, major brands shuttered 4,600 locations last year and 2024 is not looking much better.
Now, as the New Year is barely underway, iconic store brand Macy’s says it will shutter even more locations in 2024. The moves are seen as a response to increasing economic pressures.
To save expenses, Macy’s announced at the start of 2024 that it would close five locations around the country and fire 2,350 workers, or 3.5% of its workforce, according to The Wall Street Journal.
Retailers, drugstores, and fast-food chains carried on a trend from the previous year in 2023: they filed for bankruptcy and some or all their locations in order to reduce expenses, citing loss of profits, inflation, and increased expenditures.
Bed, Bath & Beyond closed 866 stores. Its name was purchased by Overstock.com which is now selling items under the old brand.
After 49 years in operation, discount retailer Tuesday Morning announced in May of last year that it was closing all of its locations nationally.
Following the release of its sales, gross margins, and net income losses, Foot Locker also declared that it will close 400 of its locations in North America by 2026.
As a cost-cutting strategy, pharmacy behemoths Rite Aid, CVS and Walgreens also shuttered locations. By the end of 2026, CVS intended to close 900 stores. Walgreens declared it was closing 450 locations in order to reduce expenses after disclosing profits losses of more than $170 million. Rite Aid closed 300.
With more than 700 stores in the United States, Sears was once the biggest retailer in the world. However, it closed hundreds of its outlets. There are now just twelve locations left.
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Giant Walmart closed almost two dozen locations with plans for more this year. It shuttered locations from San Diego to Overland Park, Kansas.
And while Dollar General is known for opening new locations even in the smallest towns, it also closed more than 70. Discount retailers Family Dollar and Dollar Tree closed more than 150 combined. Even Aldi closed 30 locations.
Other notable retailers to close locations include The Children’s Place (107), Office Depot (42), Save A Lot (42), Sally Beauty (38), GAp (31), and Best Buy (27).
Most all plan to cut more locations in 2024.
Food chains not immune
Fast food chains have also said they are not immune and customers are noticing. Last week, a video of a woman went viral after she found a Taco Bell Receipt from 2012. The receipt listed a five-layer burrito for $1.30. She stated it now costs over $3.50.
@yo_lovelyocean Im so upset. I cant even justify going to #tacobell anymore. #inflation ♬ Murder On The Dancefloor – Sophie Ellis-Bextor
Applebees says it will close up to 20 locations after shutting down 1,600 in 2022. Burger King closed over 150 in 2023 and says it plans to shutter twice that many in 2024. After declaring bankruptcy, Hardee’s closed 39 restaurants and pulled out of South Dakota completely. Steak and Shake is also not immune. It’s been struggling with reorganization after bankruptcy and closed an additional 24 stores.
Inflation and prices for all products and services have skyrocketed since January 2021, initially surpassing 40-year record highs. Wages have decreased in tandem with rising prices and costs, “placing additional stress on family finances,” according to the Heritage Foundation.
According to Heritage, there was a 7.5% decline in real disposable income between January 2021 and November 2023, a 37% decrease in the affordability of home ownership, a 36% increase in credit card debt, and an 81% decline in monthly savings for Americans.
Consumer prices rose by more than 17% and gas prices by more than 50% during the same period. Economists say that crime is playing a part in the increasing costs. More than $112 billion was lost to shoplifting in 2022, the latest year for which data was available.
–Dwight Widaman and wire services
