- US retailers announced 7.1K store closures through November, up 69% from 2023.
- Family Dollar and CVS lead the closures, with 677 and 586 stores shutting down.
- Economic pressures and evolving preferences are forcing chains to rethink operations.
- 45 retail bankruptcies went down in the first 11 months of 2024, compared to 25 in all of 2023.
- National chains in NYC saw 1.3% of stores close over the past year, the fifth drop in 7 years.
The holiday season may be on its way, but Bisnow reports that US consumers will face a shrinking array of brick-and-mortar options in 2025.
Research from CoreSight shows retail closures surging, with discount stores and pharmacies hit hardest.
By The Brand
Family Dollar, owned by Dollar Tree (DLTR) since 2015, is closing 677 locations, the most of any retailer. CVS Health (CVS) follows with 586 closures, part of a trend also affecting Rite Aid (RADCQ) and Walgreens (WBA).
Despite its growth during the pandemic, CVS has struggled with falling sales and rising costs, causing its stock to plummet from $100 in 2022 to around $45 today.
Big Lots (BIGGQ), Conn’s (CONNQ), and Rue 21 round out the top five, shuttering over 500 stores each.
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Case in Point
A new report from the Center for an Urban Future (CUF) reveals dwindling national retail chains across NYC. According to GlobeSt, of 450 tracked brands, 130 reduced their store counts, while 229 stayed flat, and only 94 experienced growth.
Staten Island saw the steepest drop, with national chains reducing their presence by 1.8%. The most significant losses occurred in:
- Telecom: Metro T-Mobile (TMUS) is closing 229 stores, while T-Mobile will be down 89 stores.
- Pharma: Duane Reade (WBA) is closing 128 stores.
- Food & Beverage: Subway will shut 85 sandwich shops, 7-Eleven (SVNDY) will close 45 locations, and Baskin-Robbins will shutter 36 stores.
This reflects ongoing challenges from e-commerce competition and shifting consumer habits.
Behind The Closures
While consumer spending remains robust, shoppers are gravitating toward bargain-driven purchases and online platforms, leaving many traditional retailers vulnerable.
According to GlobalData analyst Neil Saunders, closures are often tied to poor strategy and inability to adapt to competitive threats.
For example, Family Dollar’s struggles stem from Dollar Tree’s failed acquisition strategy and mounting financial losses, including a $1.7B quarterly loss earlier this year.
Similarly, CVS and other pharmacy chains are grappling with higher operating costs and lower in-store traffic as more prescriptions move online.
Wider Implications
The rise in retail bankruptcies—up 80% from last year—highlights a market that’s heating up. A combination of e-commerce growth, shifting consumer habits, and economic uncertainty is forcing retailers to cut costs or shut down entirely.
Dollar stores and discount chains are losing ground, while drugstores face sector-wide financial pressures. Experts warn the trend may accelerate if these businesses fail to evolve with consumer demand.
