Walmart
Retailers are closing nearly 3,200 stores this year, a 24% increase from 2023. Major chains like Family Dollar and Walmart are now shutting down underperforming locations. In Washington, D.C., Aurora Market had a major impact on its neighboring community, but frequent thefts forced the family-owned store to shut down.
In this gallery, we take a closer look at the closures happening around the U.S.
Feels like losing a piece of who we are
One Aurora Market shopper stated, “Seeing it close feels like losing a piece of who we are.”
Due to financial struggles
Inflation and high costs are driving many companies to declare bankruptcy and shut down operations. Family Dollar has lead closures with over 600 stores. Tupperware is closing its last U.S. plant, laying off 148 workers, and Rue21 is shutting all 540 stores due to financial struggles.
Pharmacies are also downsizing
Pharmacies are also downsizing, with CVS, Rite Aid, and Walgreens closing numerous locations. The closures have limited access to essential goods in many areas.
Pharmacy closures led to 8 million square feet of shuttered retail space this year
Joseph Clemson of stock.adobe.com stated, “US drug stores and pharmacy closures led to 8 million square feet of shuttered retail space this year.”
The restaurant industry has also been affected
The restaurant industry has also been affected. Denny’s plans to close 50 restaurants this year and 100 more in 2025, focusing on elminating underperforming sites to improve profits.
Retailers like Foot Locker and Macy's
Retailers like Foot Locker and Macy’s are closing stores to streamline operations. Express has also shut down several locations.
Middle and lower-market companies
Bob Nardell, former CEO of Home Depot and Chrysler, said, “High-interest rates are ‘killing’ middle and lower-market companies.”
Costco have continued to expand
UBS analysts expect up to 45,000 store closures in the next five years, mainly impacting smaller retailers. Meanwhile, big-box stores such as Costco have continued to expand.
Spending habits and economic stability
Consumer debt is also rising, with credit card debt hitting $1.13 trillion. Inflation is a top concern for voters, affecting spending habits and economic stability.
Total credit card debt
David Rosenberg of Rosenberg Research warned, “Total credit card debt reached a new all-time high of $1.13 trillion.”
Consumer credit
Rosenberg added, “As far as consumer credit is concerned, the default cycle isn’t merely looming, it’s arrived.”