2024 Retail Crisis: Store Closures Up 69%, Thousands of Locations Shuttered

2024 Retail Crisis Store Closures Up 69%, Thousands of Locations Shuttered

WPBN: It does not appear that this year’s holiday season will be particularly joyful for a few of the most prominent retailers.

According to recent data from research firm CoreSight, retailers in the United States have declared that they will be closing more than 7,100 stores by the end of November 2024.

This is a 69% increase over the same time period in the previous year. According to the findings of the survey, 45 stores have filed for bankruptcy protection so far this year, which is significantly higher than the 25 retail bankruptcies that occurred throughout the entirety of 2023.

When consumer spending looks to be robust, which helps to enhance the nation’s economic growth, the rise in store closures occurs at a time when consumer spending appears to be strong.

In spite of this, cracks are beginning to appear, as several merchants have reported that consumers who are tired of inflation are either reducing their spending or becoming more selective when looking for specials and deals.

While some retail businesses, like Walmart, are in the process of discovering strategies to appeal to customers who are struggling financially, other chains are having a difficult time.

A month ago, Target reported that its most recent quarterly earnings and sales did not meet the expectations that were set for them. Family Dollar and CVS Health, two retailers that have had a difficult time reducing their prices for customers, are among the businesses that have had the greatest number of closures.

“There is not enough growth in the retail market for every player to do well, which is why we are seeing polarized results,” Neil Saunders, an analyst with GlobalData stated.

He continued that, “However, many of the chains closing stores are those that have problems which go beyond the economy. Their propositions might not be right, their offers might not be what consumers want, and they might not have responded to competitive threats in the right way.”

More Coverage:

Which retail establishments are going out of business?

According to the statistics provided by CoreSight, discount chains and drugstores are among the retailers that have recently seen the greatest number of shop closures.

More than seven thousand pharmacies have shut their doors since the year 2019, according to the Associated Press, which cited data from the University of Pittsburgh. This is a problem that has been going on for a long time.

As a result, many areas in the United States are experiencing a phenomenon known as pharmacy deserts, in which inhabitants do not have access to a nearby pharmacy where they may fill prescriptions and purchase other health care supplies.

REFERENCE

Avatar photo
Melissa Sarris is a dedicated local news reporter for the West Palm Beach News. She focuses on accuracy and public interest when she covers neighborhood stories, breaking news, and changes in local government. Melissa likes to explore new places and help out at neighborhood events when she's free.