- Walgreens leads with plans to shutter 1.2K locations, while other major brands like Family Dollar, CVS, and Rite Aid are also reducing their store footprints.
- Rising costs, underperformance, and changing consumer habits are forcing companies to downsize and restructure, with many seeking cost-saving measures.
- Closures span a variety of sectors including pharmacies, convenience stores, department stores, and specialty retail.
As reported by al.com, store closures are reshaping the U.S. retail market, with over 2K locations shutting down as big chains are forced to navigate post-pandemic shifts in consumer behavior.
By The Numbers
Brands like Walgreens (WBA), CVS (CVS), and Family Dollar (FDO) are leading the wave of closures in 2024. Although the rate of closures has slowed compared to last year, the trend is expected to persist, with analysts projecting over 45K stores could close over the next five years.
The largest closure announcement this year came from Walgreens, which plans to shutter about 1.2K stores—or nearly 10% of its U.S. locations—over the next three years. This decision follows an $8.6B loss reported in the last fiscal year, prompting the company to initiate cost-saving measures.
The first 500 Walgreens closures are set to begin within the next 12 months. Other notable chain store closures include:
- Family Dollar: 1K stores. Owned by Dollar Tree, the chain began shutting down locations in early 2024, with another 370 closures planned over the next three years.
- 7-Eleven: 444 stores. The convenience store chain attributed its closures to underperformance, citing factors such as reduced SNAP benefits and new regulations on flavored nicotine products.
- CVS: 300 stores. As part of a three-year plan, the pharmacy chain is closing 900 stores and eliminating 2,900 corporate jobs to streamline operations.
- LL Flooring: 200 stores. Formerly known as Lumber Liquidators, the company filed for bankruptcy and is ceasing operations.
- Foot Locker: 113 stores. The company is in the process of closing 400 locations by 2026 but has also invested in opening and relocating new stores this year as part of a rebranding effort.
- Express: 107 stores. The fashion retailer announced plans to close 95 stores along with 12 of its UpWest brand locations.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
Subscribe
Going Belly Up
Economic struggles and bankruptcy filings have also forced several companies to close stores. Rite Aid, which filed for bankruptcy last year, is in the final stages of closing 800 locations, with 77 more stores closing this year.
Similarly, Conn’s, a home goods retailer, is closing all 71 of its stores after filing for bankruptcy, marking a significant shift for the company. Five closures are in Alabama alone.
Macy’s (M) has also been gradually reducing its store count, with plans to close 150 locations over the next three years. The company announced 50 of these closures will occur in 2024.
Meanwhile, Big Lots (BIGGQ) continues to struggle, with 35–40 store closures this year, mirroring the number from last year.
Why It Matters
The wave of retail closures in 2024 underscores the pressures faced by the industry, from rising operational costs to shifts in consumer spending habits.
While some companies are restructuring or downsizing to remain competitive, the trend reveals broader challenges that could reshape the retail landscape in the years ahead.
As companies look for ways to adapt, analysts expect more closures, cost-saving measures, and strategic shifts to continue through 2025 and beyond.
