American retail stores shutter at alarming rate in 2024

Retail store closures in the United States rose sharply in 2024, with over 7,100 closures announced through the end of November, according to data from the research firm CoreSight. This number marks a 69 percent increase from the previous year under the Biden-Harris administration, which has been plagued by inflation.

The spike in closures is tied to a wave of retail bankruptcies, with 45 retailers filing this year compared to 25 in 2023. Economic challenges, including persistent inflation, have led consumers to cut back on discretionary spending.

While larger chains like Walmart have adapted by appealing to cautious customers, others have faced significant challenges. Last month, Target reported disappointing earnings and sales for its most recent quarter.

Companies with the largest number of store closures this year include Family Dollar and CVS Health. Pharmacy closures have been a notable trend, with over 7,000 such locations shuttered since 2019, according to the Associated Press.

Neil Saunders, an analyst with GlobalData, explained that while economic pressures are a factor, many struggling retailers face deeper issues.

"There is not enough growth in the retail market for every player to do well, which is why we are seeing polarized results," Saunders explained to CBS News. "However, many of the chains closing stores are those that have problems which go beyond the economy. Their propositions might not be right, their offers might not be what consumers want, and they might not have responded to competitive threats in the right way."

While the discount retail sector continues to grow, not all companies are thriving. Dollar General and Dollar Tree are expanding with new store openings, but Family Dollar has struggled to attract shoppers. Saunders attributes this to “a poor selling environment.”

Looking ahead, Saunders noted that the retail industry may stabilize in 2025, but more closures are likely as companies focus on restructuring.

"Retailers are trying to get their finances and operations in order. This has been a year of change after several years of disruption," he explained. "I think these things tend to go in cycles and we are currently in a bit of a down cycle for store closings."