The Year 2023 Shows a Rise in Store Closures Compared to 2022
Coresight Research observed that there was an 80% increase in store closures, significant for major retailers.
The year’s over 4,600 store closures had a variety of reasons ranging from a major retailer’s bankruptcy to the decision by other operators to close underperforming stores. Furthermore, some retailers pointed to a rise in theft as a factor for their decision to close certain locations.
Several negative trends have impacted brick-and-mortar businesses like the ongoing shift to online shopping and shoppers cutting back on certain types of purchases due to increasing inflation.
Despite the closures, Coresight’s data shows that almost 5,500 stores were actually opened in 2023, therefore offsetting the number of closures. In some favorable instances, retailers moved into locations vacated by other businesses.
Retailers also took advantage of the situation by making use of closed locations, as evidenced by Burlington Stores taking over more than 40 former Bed Bath & Beyond spaces.
Bed Bath & Beyond was hit the hardest, with their store closures accounting for a significant portion of the year’s closures.
Rite Aid and David’s Bridal also made substantial store closure announcements as a result of bankruptcy filings and business challenges.
Christmas Tree Shops, Party City, and several dollar store chains joined the list of retailers that had to close stores this year. Despite the closures, dollar stores continue to be a growing business, having announced 1,600 new store openings in 2023.
Despite some pessimism, dollar stores will continue to grow in 2024, with plans to open over 1,500 new stores.
Looking ahead to 2024, U.S. retailers have announced 580 store closures, with CVS Health and Walgreens leading the closures.
