- According to Coresight Research, 7,327 retail stores closed their doors in 2024, 57.8% more than in 2023.
- Discount stores, drugstores, and office supply chains made up the majority of closures. Some chains, like Aldi, saw few closures, with new openings planned.
- After nearly 40 years, Party City finally shut its doors for good, stranding laid-off employees without severance pay.
- Macy’s is still standing, but had to shut down 60 locations as part of a restructuring strategy.
US retail suffered a difficult year in 2024, marked by surging store closures. According to Coresight Research, 7,327 retail stores closed shop nationally, up 57.8% from 2023.
While some retail sectors expanded, most chains struggled to keep up with changing consumer behaviors, persistent inflationary pressures, and lingering post-pandemic impacts, per Quartz.
E-commerce growth also continues to reshape the retail landscape, making it harder for brick-and-mortar stores to thrive.
Surging Store Closures
Major US retailers faced unprecedented challenges last year. Despite a modest 8.2% increase in store openings, far more stores shut down than closed. Discount stores, drugstores, and home and office supply chains led the wave of closures.
The ongoing shift to online shopping also means that fewer customers are visiting physical stores, and many retailers are understandably struggling to adapt operations to our new normal.
Discount & Drugstore Disaster
Discount stores and drugstores bore the brunt of 2024’s closures. Macy’s (M) closed approximately 60 stores as part of a larger strategy to streamline operations, reduce overhead, and focus on high-performing locations—but it was one of the luckier brands.
Similarly, drugstore chains like Rite Aid (RADCQ) and Walgreens (WBA) faced crushing financial pressures. Rite Aid filed for bankruptcy and closed several locations to cut costs, while Walgreens shuttered underperforming stores in response to falling foot traffic.
Home & Office Supply Struggle
Home and office supply chains, which had been essential during the pandemic’s early days, also saw a wave of closures. Companies like Office Depot and Staples, which once dominated the office supply sector, faced shrinking demand as remote work became more ingrained and e-commerce flourished.
As businesses and people increasingly turn to online stores for office supplies, most retailers were forced to reduce their brick-and-mortar footprints.
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Big-Name Retail Survivors
While many retailers suffered last year, there were some notable exceptions. Aldi, the discount grocery chain, expanded by opening 123 new supermarkets and only closing 12 locations. This outperformance was due to Aldi meeting the growing demand for affordable groceries.
Meanwhile, dollar stores like Dollar Tree (DLTR) and Family Dollar remained largely immune to the overall downturn, with some continuing to open new locations in both urban and rural markets.
In Memoriam
Then there were the household brands that had to shut their doors for good. Bed Bath & Beyond and Tuesday Morning, which had struggled for years, were forced to shutter hundreds of stores as part of bankruptcy proceedings.
Party City, which seemed to have defied the e-commerce trend (and Walmart) for nearly 40 years, filed for Chapter 11 bankruptcy right before Christmas.
E-commerce still in control
The increasing dominance of e-commerce has undoubtedly played a key role in shaping retail dynamics. Consumers will only continue to embrace online shopping for its convenience, variety, and competitive pricing.
Retailers who failed to evolve their business models to accommodate this shift were left behind. Inflation and supply chain challenges were just the insult upon injury, making it much harder to keep brick-and-mortar locations profitable.
As the retail sector navigates this difficult landscape, the industry is seeing a greater emphasis on smaller, more efficient store footprints, with a shift toward enhancing the in-store experience for customers who do choose to shop in person.plex are now in the national spotlight. The Urban Land Institute named the area one of the top real estate markets to watch in 2025, buoyed by its population surge, strong economic fundamentals, and expanding infrastructure.
As the city continues to expand, it’s expected to remain a hotbed for real estate investment and job opportunities, offering a unique blend of traditional Texas culture and modern development. additional momentum to the commercial and multifamily mortgage markets in 2025.
