THE “retail apocalypse” took several major US chains as its victim in 2024 as they were forced to close locations or went bankrupt entirely.
They were joined by other businesses quietly shutting down locations, as brick-and-mortar stores continued to battle against online giants such as Amazon.
CVS store in June: It closed 586 locations in 2024[/caption]
Troubling new data shows that by November 2024, there were 7,100 store closures projected.
This marks a 69% increase compared to the same time frame in 2023, according to Newsweek.
This is the largest surge in closures since the Covid pandemic.
In 2020, 9,698 stores had closed and 3,704 opened, Newsweek reported.
Yet retailers had managed to make a comeback by 2023 with only 5,548 closures and 5,843 openings, giving a net increase for the year.
In 2024, Family Dollar led the pack with 677 closures, followed by CVS Health with 586.
Big Lots suffered 580 store losses, and Walgreens 259.
Here’s a look at the worst hit:
BIG LOTS
The chain announced earlier this month it would close all of its remaining 963 stores only three months after its bankruptcy filing.
It came after a deal with a private equity firm failed to go through.
Nexus Capital Management LP was set to purchase Big Lots and assist in restructuring but has dropped out, according to a press release.
As a result, all Big Lots locations have now begun liquidation sales.
CEO Bruce Thorn said the company is still looking to complete another transaction with a different lender.
Thorn noted the going-out-of-business process could “be reversed” if that happens, according to an email obtained by The Hill.
What is the retail apocalypse?
The term has now become common usage to reference the downfall of physical stores as online giants grow.
The term “retail apocalypse” was used by Dennis Dick, a trader at Las Vegas-based Bright Trading LLC in May 2022.
At the time, Walmart’s quarterly profit fell 25 percent, missing Wall Street expectations, and Dick told Reuters: “This is a little bit of a retail apocalypse.”
Dick added: “It was Walmart, and everybody thought it was a one-off.”
“Now that Target missed earnings [by] a lot more than Walmart even did, they’re scared that the consumer is not as strong as everybody thinks,” said Dick.
CVS
The chain continued its bloodbath in 2024 by announcing at the start of the year that it would be closing a further 300 locations by the end of April.
The company began the process of closing 900 stores nationwide in 2021, with 600 of these locations already axed.
“The closures are part of our plan to realign our national retail footprint and reduce store and pharmacy density and are based on our evaluation of changes in population, consumer buying patterns and future health needs to ensure we have the right pharmacy format in the right locations for patients,” a spokesperson told The U.S. Sun.
WALGREENS
Yet another pharmacy chain was hit hard in 2024.
Earlier in December, Walgreens announced it was in talks with a private equity firm over a buyout.
The deal has yet to be finalized, but if it happens, it would take the pharmacy retailer off the public market.
Shoppers could potentially see changes in Walgreens’ business model as a result.
It comes only weeks after CEO Tim Wentworth confirmed the brand would close around 1,200 locations by 2027.
BUYBUY BABY
The big box retailer confirmed in October that it would close all of its remaining physical stores by the end of 2024 despite staging a staggering comeback only a year ago.
It now says it will be transforming into a “digital-first” brand and “focusing all our energy on providing an exceptional online shopping experience.”
FAMILY DOLLAR
The popular chain announced thousands of closures this year due to financial struggles.
The franchise, which has approximately 8,000 locations across the country, has faced ongoing difficulties since its acquisition by Dollar Tree in 2015 for $8.5 billion.
The acquisition was intended to help Dollar Tree compete against larger rivals but it has been a rocky integration.
Walgreens drug store in 2013: The chain has closed 258 locations this year[/caption]
