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Retail
Dominick Reuter
2023-10-18T16:50:33Z
- At least 20 major retailers have said they're closing US stores in 2023, amounting to 2,847 locations.
- Rite Aid is the latest chain planning to close stores, joining a list that includes Amazon and Walmart.
- Bed Bath & Beyond closed 896 locations amid bankruptcy — the most of any retailer on the list.
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It's not exactly the retail apocalypse ofprior years, but it's a shake-up nonetheless.
An Insider tally of announcements by 20 major retailers in 2023 finds as many as 2,847 stores have closed or are set to close across the US.
The rationales are varied: Some companies are navigating bankruptcy proceedings, while others say they're aiming to cut costs. Several are adjusting store formats to meet changing shopping trends.
Rite Aid is the latest to join the list, with 154 drugstores set to close as the struggling pharmacy negotiates a bankruptcy deal. Advertisem*nt Topping the list of retailers shedding locations is Bed Bath & Beyond, which declared bankruptcy and closed 896 stores across three brands this year, followed by Foot Locker, which is shuttering 545 stores across two brands by 2026 as part of a shift away from shopping malls. See the full list:
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Bed Bath & Beyond: 896 stores
and closed its stores for good on June 30. The brand is set to live on in digital form after for $21.5 million.
The wind-down affected the 360 flagship stores and 120 Buybuy Baby locations the company previously planned to keep open, plus that were already set to close, bringing the total count to 896 locations closing this year.
Foot Locker: 545 stores
Foot Locker said in March that it would close as many as 420 stores by 2026 in shopping malls as part of a plan meant to "reset" the company, as well as 125 Champs Sports locations. It also said it aimed to open more than 300 "new concept" stores in the same period, including locations outside malls.
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Tuesday Morning: 487 stores
The Dallas-based home goods company said on April 29 that it was shutting down all of its stores.The news came after the company said in February that it planned to close more than half of its storesamid bankruptcy proceedings.
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CVS: 300 stores
CVS is in the second year of a three-year plan to close a total of 900 stores by the end of 2024 as changing populations and buying patterns led the company to reconsider how many stores it needs in certain areas.
In a statement in November 2021, the company said the strategy aimed to complement an expanding digital presence.
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Rite Aid: 154 stores
The pharmacy chain Rite Aid has released a list of 154 locations it's closing as it navigates bankruptcy proceedings. The closing stores are spread throughout the US but concentrated in California as well as Northeastern states, including New York and Pennsylvania.
A spokesperson told Insider the company considered a variety of factors when deciding to close a store, "including business strategy, lease and rent considerations, local business conditions and viability, and store performance."
The company has about 2,100 drugstores, and people familiar with discussions previously told The Wall Street Journal that the number of closures could reach as high as 500.
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Walgreens: 150 stores (in US)
Walgreens plans to close 150 stores in the US and 300 in the United Kingdom, the company disclosed in its third-quarter earnings call.
The chain operates roughly 9,000 US stores and did not specify which locations would close.
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Christmas Tree Shops: 82 stores
The Massachusetts-based seasonal specialty retailer filed for bankruptcy in May and is going out of business, citing slowing demand, inflation, and rising interest rates.
The chain had already closed 10 stores and said it was winding down the remaining 72 locations across 20 states.
Bath & Body Works: 50 stores
Although the olfactory factory is, in fact, expanding its retail footprint this year with 90 new stand-alone stores and 25 remodels, it told investors the move would involve the closure of about 50 of its mall-based stores. Bath & Body Works' net gain comes as a loss for US malls that are seeing an exodus of legacy tenants.
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Gap and Banana Republic: 46 stores
Four Banana Republic stores have already closed this year, two years after its parent company, Gap, said it would close about 350 Gap and Banana Republic stores by the end of 2023. The company reported in fourth-quarter earnings that it had 912 locations at the end of 2022 and would end 2023 with about 866.
Party City: 31 stores
After announcing 22 store closures in February, the retailer added another nine to the closure list in April.
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Walmart: 23 locations
The big box retailer is shuttering 22 stores across multiple states, citing poor performance, as well as both of its remaining pickup-only concepts. The closures follow a trend of Walmart closing a handful of stores across various states each year.
Best Buy: 20 stores
The electronics giant said it planned to close 20 to 30 of its large-format stores as it opens eight smaller concepts and 10 outlet locations, without specifyingwhere these openings or closures would occur. The company typically closes 15 to 20 large stores per year as leases are reviewed.
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Target: 13 stores
Target announced in September that it was closing nine stores in the New York, Portland, San Francisco, and Seattle areas because of theft and organized retail crime. Eligible team members will have an opportunity to transfer to other locations, Target said in a statement.
Earlier this year, the company announced plans to close four other locations in three metro areas: two near DC, one in Philadelphia, and one in its hometown of Minneapolis. The company cited declining foot traffic as its primary reason for those closures and said most store employees would be offered positions at other locations. It also said it would open about 20 new stores this year.
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Moosejaw: 11 stores
Dick's Sporting Goods will close 11 Moosejaw locations just months after buying the company from Walmart, multiple outlets reported in September.
The company said it would integrate leadership of the remaining three stores with its primary outdoors-focused brand, Public Lands.
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Lidl: 11 stores
The German discount grocery chain Lidl closed underperforming locations in six states:North Carolina, Virginia, New Jersey, South Carolina, Maryland, and Pennsylvania
The chain has over 12,000 stores worldwide, with roughly 170 stores in the US. It recently opened stores in Washington, DC, and Greensboro, North Carolina, and is planning to open another in Brooklyn, New York.
Amazon: at least 9 stores
Amazon announced the closure of nine of its Go locations — two in New York, three in Seattle, and four in San Francisco — asthe company reevaluates its physical store strategy.
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Big Lots: 7 stores
The discount chain said it was shutting down three stores in California and four in Colorado as the retailer moved toward small towns and away from urban areas.
The RealReal: 6 stores
The luxury consignment marketplace said it was shuttering four stores and two consignment offices across the US to cut about $2 million in costs.
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Macy's: 4 stores
Macy's announced it was closing four stores during the first quarter in shopping malls in California, Colorado, Hawaii, and Maryland, as part of its three-year plan to close 125 locations.
JCPenney: 2 stores
JCPenney said locations in Oswego, New York, and Elkhart, Indiana, would close this year following the wind-down of over 150 stores since 2020.
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I'm an expert in retail and business trends, with a deep understanding of the dynamics shaping the US markets. My expertise is grounded in a comprehensive knowledge of the retail landscape, evident through a thorough analysis of current trends, market dynamics, and the financial health of major retailers.
Now, let's delve into the information provided in the article:
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Bed Bath & Beyond (896 stores): Declared bankruptcy and closed 896 stores across three brands this year, making it the retailer with the highest number of closures on the list.
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Foot Locker (545 stores): Announced plans to close 545 stores across two brands by 2026 as part of a shift away from shopping malls.
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Tuesday Morning (487 stores): The Dallas-based home goods company decided to shut down all of its stores amid bankruptcy proceedings.
-
CVS (300 stores): In the second year of a three-year plan to close a total of 900 stores by the end of 2024 as part of a strategy to adapt to changing populations and buying patterns.
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Rite Aid (154 stores): Released a list of 154 locations to close as it navigates bankruptcy proceedings.
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Walgreens (150 stores in the US): Plans to close 150 stores in the US and 300 in the United Kingdom, as disclosed in its third-quarter earnings call.
-
Christmas Tree Shops (82 stores): Filed for bankruptcy, citing slowing demand, inflation, and rising interest rates, and is going out of business.
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Bath & Body Works (50 stores): While expanding its retail footprint with new stand-alone stores, it is closing about 50 of its mall-based stores.
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Gap and Banana Republic (46 stores): Closed four Banana Republic stores this year, part of a plan to close about 350 Gap and Banana Republic stores by the end of 2023.
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Party City (31 stores): After announcing 22 store closures in February, added another nine to the closure list in April.
-
Walmart (23 locations): Shuttering 22 stores across multiple states, citing poor performance, as well as closing both of its remaining pickup-only concepts.
-
Best Buy (20 stores): Plans to close 20 to 30 large-format stores as it opens eight smaller concepts and 10 outlet locations.
-
Target (13 stores): Announced closures in New York, Portland, San Francisco, and Seattle areas due to theft and organized retail crime, citing declining foot traffic as the primary reason.
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Moosejaw (11 stores): Dick's Sporting Goods will close 11 Moosejaw locations after buying the company from Walmart.
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Lidl (11 stores): Closed underperforming locations in six states and has over 12,000 stores worldwide, with roughly 170 stores in the US.
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Amazon (at least 9 stores): Announced the closure of nine of its Go locations as the company reevaluates its physical store strategy.
-
Big Lots (7 stores): Closing three stores in California and four in Colorado as the retailer moves toward small towns and away from urban areas.
-
The RealReal (6 stores): The luxury consignment marketplace is shuttering four stores and two consignment offices across the US to cut costs.
-
Macy's (4 stores): Closed four stores during the first quarter in shopping malls in California, Colorado, Hawaii, and Maryland, as part of its three-year plan to close 125 locations.
-
JCPenney (2 stores): Announced the closure of locations in Oswego, New York, and Elkhart, Indiana, following the wind-down of over 150 stores since 2020.
This information illustrates a significant shake-up in the retail landscape, with various retailers citing reasons such as bankruptcy, shifting market trends, and cost-cutting measures for store closures. It reflects the ongoing evolution of the retail industry and the impact of factors like e-commerce, changing consumer behaviors, and economic challenges on brick-and-mortar stores.