U.S. retailers have announced more than 7,100 store closures through the end of November 2024, a 69% jump from the same time last year, according to recent data from research firm CoreSight. That comes as 45 retailers have filed for bankruptcy protection so far this year, compared with 25 retail bankruptcies for all of 2023, the report found.
The surge in store closures comes at a time when consumer spending appears strong, helping to lift the nation's economic growth. Yet cracks are emerging, with some retailers reporting that inflation-weary shoppers are cutting back or becoming more choosy in searching for sales and deals.
While retailers such as Walmart are finding ways of appealing to financially strapped shoppers, other chains are struggling. Target last month said its most recent quarterly earnings and sales fell short of forecasts. Family Dollar and CVS Health, which have struggled with economizing consumers, are among the companies with the largest 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, told CBS MoneyWatch about this year's surge in store closures.
Retailers with the largest number of store closures include discount chains and drugstores, according to CoreSight's data.
Pharmacy closures are a long-term problem, with more than 7,000 closing since 2019, according to the Associated Press, citing data from the University of Pittsburgh. That's causing pharmacy deserts across regions in the U.S. where some residents don't have a nearby drugstore to fill prescriptions and get other health care products.
Overall, the discount store category is growing, Saunders noted. Dollar General and Dollar Tree both announced hundreds of new store openings in 2024, CoreSight's research found. Yet Family Dollar, which has had widespread closures this year, has failed to attract price-sensitive shoppers while its stores offer "a poor selling environment," Saunders said in a Dec. 4 research note.
