‘Retail apocalypse’ saw 57% increase in store closings last year

[SIMONE DEL ROSARIO]

2024 WAS NOT THE BEST YEAR FOR RETAILERS.

AND IF YOU WERE WATCHING STRAIGHT ARROW NEWS – THAT’S NOT NEWS TO YOU.

[LAUREN]

“Walgreens will be shuttering a meaningful percent of its 8,600 locations across the country.”

[JACK]

“TGI Friday’s recently filed for bankruptcy.”

[KARAH]

“Denny’s announced Tuesday it’s closing 150 restaurants.”  

[CRAIG]

“It appears the party is over for Party City.”  

[LAUREN]

“The fast food chain announced its closing 140 outdated locations.”

[JACK] 

“We’re learning seafood chain Red Lobster is closing dozens of locations across the country.”

[SIMONE DEL ROSARIO]

ACCORDING TO CORESIGHT RESEARCH – U.S. RETAILERS ANNOUNCED MORE THAN 73 HUNDRED STORE CLOSURES IN 2024 – THAT’S UP 57 PERCENT FROM 20-23 – LEADING TO SOME MEDIA OUTLETS CALLING IT THE “RETAIL APOCALYPSE” OF 20-24.

IT IS ALSO THE HIGHEST NUMBER OF CLOSED STORES SINCE 20-20 WHEN THE COVID-19 PANDEMIC LED MANY BUSINESSES TO SHUTTER.

ACCORDING TO CORESIGHT RESEARCH DATA – THE BRICK-AND-MORTAR RETAIL SECTOR SAW ROUGHLY 50 RETAIL BANKRUPTCIES IN 2024 – COMPARED WITH 25 IN 20-23.

LAST MONTH – THE CONTAINER STORE JOINED THE LIST OF RETAILERS AND RESTAURANT CHAINS THAT DECLARED BANKRUPTCY IN 20-24 – WITH PLANS TO EMERGE AS A PRIVATE COMPANY AFTER A REORGANIZATION.

THOUGH THE COMPANY FLOURISHED DURING THE EARLY DAYS OF THE PANDEMIC WHEN PEOPLE WERE HOME – ANALYSTS SAY A WEAK HOUSING MARKET HAS AFFECTED DEMAND.

THE NEWS CAME DAYS AFTER PARTY CITY ANNOUNCED IT WAS CLOSING DOWN ALL OF ITS STORES — AND BIG LOTS, WHICH FILED FOR BANKRUPTY PROTECTION IN SEPTEMBER, WAS SET TO CLOSE UP SHOP AS WELL — UNTIL A BANKRUPTCY JUDGE APPROVED A LAST-MINUTE DEAL TO SAVE HUNDREDS OF ITS STORES.

AND DISCOUNT CHAINS AND PHARMACIES LIKE FAMILY DOLLAR, CVS, WALGREENS CLOSED HUNDREDS OF STORES LAST YEAR – AS DID RESTAURANTS LIKE RED LOBSTER, APPLEBEE’S, AND DENNY’S.

SO WHAT’S THE REASON BEHIND THE DOWNTURN IN THE RETAIL INDUSTRY?

ANALYSTS POINT TO HIGHER PRICES AND CHANGES IN CONSUMER SPENDING – PEOPLE ARE LOOKING FOR A DEAL.

ALSO COMPETITION FROM BIGGER RIVALS LEADS TO MANY OF SMALLER OR SPECIALTY RETAILERS WITH NO ALTERNATIVE BUT TO FILE FOR BANKRUPTCY, SHUT DOWN SOME STORES, OR GO OUT OF BUSINESS.

FOR STRAIGHT ARROW NEWS, I’M SIMONE DEL ROSARI.O

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