The year 2024 has great challenges for the retail sector in the US. As reports from Coresight Research, over 7 300 stores have closed, which is an increase of 57% in compared to 2023 year. These data lead the American media to name this phenomenon “the apocalypse of retail trade.”
- In 2024 year in the US over over 7 300 stores were closed, which is an increase of 57% in compared to 2023 year and the highest number of closures since the pandemic COVID-19 in 2020 year.
- The retail trade industry recorded about 50 bankruptcies in 2024 year, in those networks such Party City, The Container Store and Big Lots, which were struggling with the crisis resulting from higher prices and changing consumer habits.
- Experts point out, that the main causes of problems in retail are increasing costs of living and the increased inclination of consumers to seek cheaper offers, often available online.
Portal san.com reports, that this is the highest number of closures
since 2020 year, when the pandemic COVID-19 forced many companies to close off their operations.
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American chain closes its stores. Collapsing for the second
In the past year about 50 companies from the retail branch have gone bankrupt, which means doubling the number of bankruptcies in comparison to
2023 year. On the list of failed retailers were both popular chain stores, as and well-known restaurants.
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Big network closes shops, fails of employees and announces bankruptcy
Wave bankruptcy in 2024 year
In December 2024 year American networkstores offering articles for home – The Container Store – has joined the group of companies, which have announced decline. The company, which had developed thanks to increased demand for its products, is now struggling with problems resulting from the weakening housing market. The Container Store plans to restructure and return to the market under new governance.
Networks are liquidating stores. The crisis has affected the entire sector
The crisis has also affected other retail and gastronomic chains. This is among other things.
- Discount stores and pharmacies, such as Family Dollar, CVS and Walgreens, which have closed hundreds of outlets.
- Restaurants, including Red Lobster, Applebee’s and Denny’s, which also have closed operations in many locations.
American portal reports, that the nearly chain of Party City stores announced the closing of all its locations.
The Big Lots chain, which in September had applied for bankruptcy protection, was close to ending its operations, however at the last minute survived its decision by the court, which approved the agreement allowing to maintain locations.
Analysts point to two key factors responsible for difficulties in the retail sector:
- Increasing prices – higher costs of living encourage consumers to seek cheaper alternatives.
- Changes in the behavior of consumers – and more people are forgoing shopping in stationary stores forbetterofferspricedavailableonline.
The year2024wentintohistoryasanotherdifficultperiodforretailintheUS.Expertsforecast,thatchangesinconsumer habitsandincreasingcompetitionwillhavelongtermimpactonthissector.
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