2024 was not the best year for U.S. businesses, with retailers closing more than 7,300 stores. According to Coresight Research, that’s up 57% from 2023, leading to some media outlets calling it the “retail apocalypse” of 2024.
The recent closures are also the highest number of closed stores since 2020, when the COVID-19 pandemic led many businesses to shutter. According to Coresight Research data, the brick-and-mortar retail sector saw roughly 50 retail bankruptcies in 2024, compared with 25 in 2023.
Last month, The Container Store joined the list of retailers and restaurant chains that declared bankruptcy in 2024, with plans to emerge as a private company after a reorganization.
Though the company flourished during the early days of the pandemic when people were home, analysts say a weak housing market has affected demand.
The news came days after Party City announced it was closing down all of its stores. Big Lots, which filed for bankruptcy protection in September, was set to close up shop as well until a bankruptcy judge approved a last-minute deal to save hundreds of its stores.
Discount chains and pharmacies like Family Dollar, CVS and Walgreens closed hundreds of stores last year, as did restaurants like Red Lobster, Applebee’s and Denny’s.
So, what’s the reason behind the downturn in the retail industry? Analysts point to higher prices and changes in consumer spending. Experts say people are looking for a better deal.
Competition from bigger rivals is also leading to many smaller and specialty retailers with no alternative but to file for bankruptcy and shut down some stores or go out of business completely.
