What’s the deal with all these retail closures?
This year was a rough one for some major stores, continuing a trend that many have dubbed the “retail apocalypse.” The reasons for this year’s more than 4,600 retail closures are varied and complex, ranging from some operators strategically closing underperforming locations in declining shopping malls to the outright bankruptcy of a major retail chain that was once a household name. It’s a challenging landscape that reflects a fundamental shift in how we shop.
Merchants sometimes blamed rising theft, specifically organized retail crime, for their rationale in closing some urban locations, citing safety concerns for staff and unsustainable losses. But the sad reality is that several larger, more powerful trends are weighing on brick-and-mortar businesses against the backdrop of the retail closures. Americans continue to shift towards online shopping at an accelerated pace, a habit that became deeply ingrained during the pandemic. The convenience of e-commerce, coupled with the massive logistical power of giants like Amazon, has created immense pressure on traditional retailers.
Different sectors face unique challenges. For example, pharmacy chains have struggled with lower reimbursement rates from pharmacy benefit managers and intense competition from the pharmacy services offered by Amazon and big-box retailers like Walmart. This has forced major players like Rite Aid and CVS to shutter hundreds of locations to cut costs and consolidate their operations.
At the same time, it’s not all doom and gloom across the board. Dollar stores and other deep-discount retailers have fared better as inflation-weary consumers seek out lower prices for everyday necessities. Many families are cutting back on discretionary purchases, such as high-end electronics and jewelry, to afford groceries and gas. This economic pressure creates clear winners and losers in the retail space. So, is your favorite store going out of business? Continue reading to find out which iconic brands are scaling back.
Gap
According to Forbes, consumers are less interested in Gap’s apparel, a sentiment that has been growing for years. Many shoppers who grew up with the brand during its 90s peak now consider it plain and overpriced compared to the trendy, affordable offerings from fast-fashion brands like Zara and H&M. The brand has struggled to redefine its identity for a new generation of consumers.
To combat this decline, Gap Inc. announced that it would shutter approximately 350 Gap and Banana Republic stores, which amounts to about 30% of its namesake and Banana Republic stores in North America, by the end of the year. The goal is to have a smaller, more profitable, and healthier fleet of stores. This strategic retail closure will also move most of the brand’s presence out of traditional indoor malls, which have seen their own significant decline in foot traffic.
President and CEO Mark Breitbard said in a statement that Gap has been overly reliant on low-productivity, high-rent mall stores for far too long. He emphasized that the company’s new focus is on addressing these critical real estate problems and accelerating their shift to a true Omni-model. This model aims to seamlessly integrate the online and in-store experience, allowing customers to buy online and pick up in-store or have online orders fulfilled by local store inventory.
Interestingly, while Gap and Banana Republic are shrinking, the parent company is investing heavily in its more successful brands. The clothing conglomerate plans to open up to 40 more Old Navy stores and 100 more Athleta stores in the coming years. Old Navy’s value proposition continues to resonate with families, while Athleta is capitalizing on the booming “athleisure” market.
Godiva Chocolatier
Unfortunately, there’s a bittersweet end for the physical footprint of this beloved Belgian chocolate maker, which closed all 128 of its brick-and-mortar stores and cafes across North America recently. This was a stunning reversal, as Godiva had announced grand plans in 2019 to open up 2,000 new cafes worldwide, including over 400 in North America. These cafes were intended to be immersive experiences with a full menu of chocolate-infused treats, coffee, and more.
But the COVID-19 pandemic completely destroyed its in-store foot traffic, which was heavily reliant on shoppers in malls and travelers in airports—two areas that became virtual ghost towns. And sadly, even after the pandemic, demand for the premium, in-person shopping experience offered through Godiva’s locations has waned. The crisis permanently accelerated changes in consumers’ shopping behavior, with many now preferring the ease of online ordering for specialty goods.
Don’t worry about this retail closure preventing you from getting your fix, though. You’ll still be able to grab your favorite signature truffles and chocolate-covered strawberries. The company has pivoted its strategy to focus on digital sales and wholesale partnerships. It still maintains its robust online presence and now markets its products through major grocery stores and retailers like Costco and Target, making the luxury chocolate more accessible than ever before.
The Children’s Place
A staple for generations of parents, The Children’s Place has been selling colorful and affordable clothing for kids for more than 50 years. But the company hit a major roadblock during the pandemic when parents stopped buying the latest fun fashions for school pictures and birthday parties, especially when so many children were learning remotely from home.
As a result, the company moved to aggressively cut down its “mall-based, brick-and-mortar portfolio” in North America after its first-quarter financial results revealed that net sales had dropped almost 40%. The situation hasn’t gotten much better since the pandemic ended, either, as the company now faces intense competition from the children’s sections at Target, Walmart, and Old Navy. The continued pressure from these retail giants and shifting consumer habits may lead to even more retail closures as The Children’s Place attempts to right-size its physical footprint.
Best Buy
Despite a massive growth in online sales, particularly during the work-from-home boom, Best Buy doesn’t seem to want to use that money to finance its vast network of large-format brick-and-mortar stores. In fact, it has been gradually and strategically facing some serious retail closures for several years. The company has been grappling with the “showrooming” effect, where customers browse products in-store only to purchase them for a lower price online.
In an earnings call in February 2021, Best Buy’s leadership explained that the company closed 20 of its big-box locations in each of the previous two years and expected to close an even higher number in the coming years as part of a major restructuring. In a significant shift in labor strategy, it also planned to add 2,000 part-time positions while it laid off 5,000 full-time employees, signaling a move toward a more flexible, lower-cost staffing model.
The company said it’s trying to stay nimble in a rapidly changing market by reducing the length of its average store lease terms. Currently, about 40% of its leases are coming up for renewal in the next three years. This gives the company tremendous flexibility, meaning that any future cuts and store closures could be announced and executed abruptly.
JC Penney
This respected department store chain has been a cornerstone of American malls for nearly 120 years, but in recent times, it has suffered plenty of humiliations and near-death experiences. Once a titan of retail, its decline has been a slow and painful one, marked by failed rebranding efforts and a struggle to stay relevant with modern shoppers.
The company filed for Chapter 11 bankruptcy in the early part of 2020, having endured years of declining sales and mounting debt long before the COVID-19 lockdowns even started. As part of the bankruptcy proceedings, the company planned to close almost 30% of its 846 locations, a move that threatened to leave huge anchor vacancies in malls across the country.
That’s when the nation’s largest mall owners, Brookfield Asset Management Inc. and Simon Property Group, pounced and bought JC Penney out of bankruptcy, saving it from complete financial ruin and liquidation. It was a self-preservation move, designed to prevent their own properties from collapsing. Yet, even under new ownership, a lot of retail closure activity is still happening at full speed ahead as the new operators work to stabilize the business.
GameStop
A few years back, a legion of investing pranksters and retail traders on Reddit’s WallStreetBets forum made headlines worldwide by coordinating to send GameStop’s struggling stock “to the moon.” This unprecedented event temporarily boosted the company’s market capitalization by billions of dollars.
But that Reddit-fueled frenzy didn’t stop the underlying problems with the company’s business model. The world’s largest physical gaming retailer has been shutting down hundreds of stores over the last couple of years, and the recent stock market hijinks haven’t changed their long-term plans. Before the meme stock event, the company was already on track to close as many as 1,000 locations by April 2021 to cut costs.
The company hasn’t made any significant large-scale closure announcements since then, instead opting for a “rolling” approach of quietly shuttering underperforming stores. But observers have reported more and more clearance sales and empty storefronts nationwide, so the wave of closures is far from over.
And even though the gaming industry was booming during COVID-19 due to people being stuck at home and avoiding public spaces, the convenience of digital downloads has been a success for game publishers but a disaster for GameStop. With consoles now shipping without disc drives and platforms like Steam and the PlayStation Store offering instant access, the need for a physical store to buy games is shrinking, meaning GameStop is facing many more retail closures in its future.
Michaels
Crafty shoppers who kept an eye on the headlines could catch some heavily marked-down scrapbooking materials, yarn, and art supplies in recent years. This was a bit surprising, as the pandemic initially fueled a massive boom in at-home hobbies, from knitting to painting, which should have been a golden era for the retailer.
And even though the arts-and-crafts retailer didn’t make any formal, nationwide closure announcements, local news outlets have reported many individual retail closures nationwide, including locations in South Carolina, New York, and California. These closures often came as a surprise to local communities where the store was a popular destination for families, teachers, and crafters.
Then, in a major turn of events after its stock price had bounced back from the worst of the COVID crash, Michaels retreated from the public markets altogether, getting bought in a massive $3.3 billion deal with the private equity firm Apollo Global Management. Going private allows a company to undergo significant restructuring without the constant pressure of pleasing public shareholders with quarterly profit reports.
This isn’t the first time for such a move; it’s the company’s second time to go private after being acquired by another firm, Bain Capital, in 2006 before going public again in 2014. This history suggests the company is once again in a period of deep strategic transformation as it navigates a competitive market that includes Hobby Lobby, Jo-Ann Stores, and online marketplaces like Etsy.
Fossil
Fossil Group, a watch and handbag designer known for its classic, vintage-American style under brands like its namesake Fossil, Skagen, and Zodiac Watches, reported significant annual losses in recent years. This decline has been largely fueled by the explosive growth of smartwatches from tech giants like Apple and Samsung, which have captured the wrists of millions. And the truth is that it’s tough to keep acting like it’s business as usual after you lose $96 million in a single year.
The good news, though, is that the company has a clear plan for stabilization. It plans to take advantage of upcoming lease expirations to optimize its physical retail footprint, aiming to right-size its store count by 15% to 20%. This involves closing underperforming stores while evaluating opportunities for new, more profitable formats in key markets.
This strategic real estate adjustment will allow it to strengthen its supply chain, improve inventory management, and ultimately “make Fossil a more agile, nimble and profitable company,” thus avoiding the kind of large-scale retail closures that have plagued other brands. The goal is fewer, better stores that offer a premium brand experience.
At the same time, Fossil anticipates that direct-to-consumer digital sales will make up the majority of its sales in the long run. To that end, the company is accelerating its online shift, investing heavily in its e-commerce platform and digital marketing to reach customers where they are now shopping.
Are any of your favorite stores on this list of retail closures? The modern retail environment is clearly one of transformation rather than outright extinction. Physical stores aren’t disappearing, but their purpose is changing. Please feel free to share your thoughts with us in the comments section below. And if you liked this article, we highly recommend you also read: Top 10 Most Budget-Friendly Supermarkets in the US
69 Responses
I am so sorry that Penney’s is closing. I have shopped there since I was in high school in 1964. Maybe they won’t close the ones in Delaware so quick. JC Penney is a staple in my house (Delaware) and would be a terrible thing if any of them closed up here. I love Penney’s.
Thank you and what an unfortunate situation, are any of these stores closing in Columbus, Ga? Thank you.
So sad…..
I miss going shopping and being able to check quality of products
Amazon Is Taking All The Business From Retailers And All The Money Is Going To China.
We have purchased $500 Gift Certificates from Best Buy, a Fossil purse, etc., matte frames for Photo Club photos at Michaels and very few purchases from the other aforementioned stores.
Some of these stores should be closed, they offered nothing but high prices.
pandemic ended foot traffic stores;
Do not want Best Buy to close. It is needed.
1. Most important reasons for lack of in-store shoppers is the lack of REAL DESIRE OF SALES ASSOCIATES to be found.
2. When they are found, they are rude, or walk away while stating they are helping someone else; only to follow and see they just go into backroom.
3. When asked if there is anyone in a certain department (when a customers has to walk the length of the store looking for an associate in another distant department to find an associate) when found, associate abruptly replies “I am the only one in the store”!.
4. When a customer take clothes to the WOMEN’S fitting room, only to find MEN INSIDE the dressing areas, women turn around and walk away, leaving potential purchases on the nearest rack and walking out. (this last point happened to me the last time I went to Macy’s). I did have to seek out an associate that was with a guy that was playing loud hip hop music in Macy’s and seemed to be annoyed at the fact that I was standing waiting for her to turn around, although she saw me coming from a distances. I advised her that I could not try on items I had selected as there were men in the dressing room. She responded with “Really?”, Hummmm? I walked away, left the items on the closest rack and have not gone back since.
I was so frustrated that I even went to apply for a position as I have EXTENSIVE EXPERIENCE in customer service, but alas, even at that I was fraught with push-back; as I explained Macy’s online system was not working and could I bring my resume to leave for HR. Being detoured from even that attempt, I understand why these store are closing which is a shame. I owned two businesses that flourished, then sold for a good profit price, only to learn later both had closed (2 separate owners). This was due to lack of HONEST CUSTOMER SERVICE. Customer Service IS THE HEART BEAT OF A ANY BRICK & MORTAR STORE! (Oakland Mall Stores)
This has happened to me twice. I
GIVE ME A STORE TO RUN AND I WILL KNOCK YOUR SOCKS OFF. THIS IS NOT HYPERBOLE!
With all the store closures and people laid off, how come it doesn’t reflect in the unemployment stats?
I haven’t shopped in any of these stores in years
. I’m an online bloke. A lot of them are so backwards that I can’t believe they survived this long.
Hear, hear!
Amen!
Wow , that really sucks!! I enjoyed going to most of tbose stores and several like Micheal’s and Best Buy . Its gettingthey carry very hard to find many of the products they carry in a brick and mortor retail store. In particular art supplies and quality frames from micheals and cameras, equipment and attachments from Best Buy. Sorry to see all of the go.
THESE CLOSER are the RESULT of the TREMENDOUS MULTI TRILLIANS of PRODUCTS that are being PRODUCED and the MULTI MILLIONS of STORE LOCATIONS that OVERWHELMINGLY EXIST and continue BEING DEVELOPED .The YOUNGER GENERATIONS are NOT WILLING to WORK HARD and LONG like the OLDER GENERATIONS did to AFFORD so much HIGH PRICED PRODUCTS and also the VERY HIGH PRICES of APARTMENTS,HOMES,CARS .The ECONOMY SHOULD RETURN to having small local neighborhood stores that used to exist many decades ago instead of SO MANY GIANT STORES with each one containing about a BILLION of PRODUCT ITEMS in them.
Didn’t know about acquisition JCP but did see the lack of service and adherence to their own values.
SEES? GADIVA at TARGET is just a
problem of TARGET not marketing properly by putting items at the bottom of the shelves and drying out!
Shoppers have to think quality!
It’s sad that we are losing so many brick and mortar stores. Have you tried to buy a pair of shoes online? I have and have had to send back almost every pair I’ve ordered for lack of a proper fit. Besides this, shopping used to be a fun event! I’d take my daughters to shop and we’d be gone all day, stop for lunch and go back to continue our shopping. I hate online shopping, you can’t see or feel the quality of the garment online nor can you try it on and see what you’re getting. I buy much less now that I’m getting forced to buy online. The good days of shopping are gone. I’m not joining the online revolution. It’s no wonder our Country is wearing junk clothing all made overseas, tight yoga pants, pajama bottoms on men in public and generally very poor looking. Look back at some old photos of your family and see how nicely they dressed! The days of shopping for quality goods are gone. It’s sad.
This is so depressing. Soon we will be
Left with nothing but cheap junk
from China and Third world countries
to choose from.. Gone will be the days
of shopping in really lovely stores and
having a nice lunch with friend. It will
be the Dollar Store and Drive thru at
Taco Bell. Sad
So true! This is not America anymore if the billionaires continues to do this to our country
JC Penney SHOULD Stay OPEN !!!!!!!!!!!!!!!!!!!!!!!
I miss Abraham & Strauss most of all. I also miss Lord & Taylor…….Please tell me NO regarding Macys!
Do not close Gap, & Children’s Place…there will be no where left to shop for kids clothes…not everyone likes to shop online….its a darn shame!!!
There is no money for Shopping because we are shopping for other peoples or dogmas food. My sundries were passed out also. Roomies haven’t shopped for their own food. The fridge is always empty stick and bone to eat the neighbors grocery lifting at 1:20 A.M. Is your front door pickable.
lOVE jc pENNIES PLEASE KEEP THEM OPEN
I’m not a big on line shopper. I PREFER Togo onto a store to make my purchases. The hands to check quality and how it is made are a big part of my shopping experience.
It also gets me out of the house and it gives the freedom to make new friends and spent time talking as well as doing something we both in joy.
If I were the POTUS, I would set up a commission to study the negative effects of technology on shopping, learning, AI, and so on. As I see it, technology is destroying us, and in one or two generations…good night.
When will this go into effect
I will miss Best Buy and Michaels.
I will miss Michaels as I buy all my art supplies there. Where are artists suppose to shop for supplies? I’m not an on line buyer.
We all have our favorite “go to” retailers. Many people fail to support them through regular purchases, instead looking around for bargains. I’ve often been disappointed in the flimsy quality of bargain items. Then we wonder why the “good” stores are gone!
It will be disappointing to see Best Buy close their stores. I like to see, touch, feel and have demos of their products. I have never bought a television or iPad online.
As I see it Amazon is going to be the only place to buy most things in the near future and their rules will change drastically when that day comes. I truly hope the discount stores, like the fast food restaurants during the covid shutdown, will survive. I also hope owners will have more sense when big companies come along to buy the discount stores, owners will have enough sense not to sell. This country is in a mess.
Never even heard of some of these stores.
Please don^t close
Will the government turn those abandoned buildings into homes for the homeless and save some money and avoid more land developments?
This is so sad for stores that have been around for 30-40 years and now have to close . And part of the problem is The Biden Administration inflation is so bad a majority of people don’t have extra to shop it takes everything we make to get by on I for one can’t even buy extra at the grocery store like I use too I have to get exactly what I NEED sometimes that’s a challenge. Everyone needs to vote Trump
JCPenny is a great family store. It would be sad to see them go.
Thanks to president Joe Biden and vice president pamla harries and rest of Democrats that came up lies to win their election. I hope for the rest election the Republicans she win. Because they are for the people of USA. Democrats is for them self to make more money for self not for people of USA. Please if you like to live and save money, get rid of inflation vote Republican not Democrats. The elephant save money. Donkeys (jackass’s) gets money for their self.
The closing of K-Mart stores affected me the most. I loved K-Mart.
S
SAD NEWS.
Lot of my favorites.
These were good stores to shop.
Always a lot of customers inside.
Good stores to work for.
JCPennys has been n our Family for Decades,and we Absolutely Love them.
My Father n Law Retired from there year’s ago.
And Fossil. They’re the “ONLY PURSE” I choose to carry. Thier Quality it’s unmatched n my opinion,and I Love the Key Emblem.
As time change either u change with the times or get left behind.
We All must learn to adapt for what’s best for us All.
I’m Grateful for what your Businesses have provided for our Families over all these year’s.
We Love coming to Shop.
But if online is what fits the change best.
You’ve gotta do what you gotta do.
Much Love Light’n Harmony Always ❣️❣️❣️
So many stores that I use to,shop at are closing. This is not good
This is sad. It seems like the marketplace has moved to almost online.
Sad. Penneys is one of my favorite stores for the prices and rewards though I am not a heavy shopper. Would very much hate to see them go. I like Best Buy too, especially for their geek squad. They have been very helpful. What would we do if we could not get the technical assistance for our phones and laptops?
Sad Sam Ash closed too
I don’t shop at any of those. I m 73 and rarely shop any more except for medications and food!
SOME OF MY FAVES ARE ON THE LIST FOR CLOSING. I AM HURT & WILL LOOK FAST & HARD FOR REPLACEMENTS.
shop lifting is a very serious problem, a shop lifter should be fined { big } plud jail ,no matter who is the hell he is ,they should use guards ,cameras,prices goes up because of those shop lifters .
NOT JC PENNEY!!!!
So very sad but not unexpected. It was wonderful while it lasted. Especially at Christmas with all the window displays and the decorations in the store itself. Just to wander on the mall or walk down the street to look in windows and to see and touch the merchandise. Yes, I’m a fifties gal
Is this due to no money around or shopping on’line,?
I do not shop at any of these stores.
I am so sorry that so many retailers are having to close down. i am from the greatest generation, and prefer in-store shopping. I am not fond of technology controlling everything. I like to see and feel what I am buying. On-line shopping most frequently requires exorbitant shipping costs, time and effort to return items if needed and maybe re-shop. Not to mention the disappointment often experienced and the added costs.
I certainly understand the culture change etc. but it makes me very sad.
Many of the ones named have been favorites of mine throughout the years. I’m deeply saddened to learn of the closing.
In light of all that is going on in the world, its sad to think of all these wonderful places shutting down. It is so sad! Buy on line has not helped this situation. The United States is going through a lot. It’s sad to go by and see the closed business’s. We are already feeling the affects. I feel for our grandchildren and their grandchildren. Those are the people that will really feel it. I am praying for America and all of the people this Nation represents. Pray, pray, pray!!! Only Jesus! Please, if we don’t pray for America we can hardly ask God for a miracle, can we??? It is our job to touch heaven for all that is going on right now. Please, pray that God will hear and answer our prayers for America. She needs it bad. Please Heavenly Father hear our prayers for American and her people.
The digital age is hear for the long run…hope the best for all the retailers… and that they put there trust in G-d doing the right thing in terms of mark-up pricing to benefit consumers .
It is sad to see so many stores closing. I don’t like to buy on line, I perfer going into the store and shop. Michele, JC Pennys break my heart. Sear is gone and what they on offer on line is not the same. Tha is really sad.
I am NOT happy about Best Buy, Michael’s and JC Pennys
Men die. Well managed companies live forever
I don’t go shopping. I buy online . Not Amazon . My usual retailers, but online . It’s easier and faster and cheaper. Seems it’s the way to go.
Kenney is always my first choice for bath and kitchen towels and other
supplies
They are good quality, ample choices and reasonably priced.
Hope they stay around.
Illie
Hard to make accurate color choices online.
.
Personally, I like to shop in stores. Touching and feeling the quality of the merchandise is a necessity.
I have gone back to making everything, clothes/home decorations/ paintings/bedding/drapes/ shower curtains,…etc. The problem now is that they are closing most of the fabric stores. They closed Hancock Fabric stores, and they had one of the best fabric selections around. Now I see that they are closing Joann’s. They are more into crafts than fabrics. I am not into buying fabric online.
As for clothes, a lot of items you buy are based on Asian sizes. When you are 5′ 10” tall, that leaves a lot to be desired.
I will miss going to shop at the stores it’s nice to buy it and bring it home the same day
I see everyone sad and complaining but it’s the consumers fault for being lazy and relying on the online shopping. The only way to support is to stop shopping online and physically go to the stores as we have done so many years. Doesn’t have to be the above mentioned stores but if we continue to shop only online they will all be gone. That my friend is sad. There are millions of people involved in these closings and that means they will be unemployed hence creating more problems. I personally go shop at stores and local businesses as I am not a fan of online shopping. I only do online when the store i want something from no longer has a physical building anymore.
Sad about Bed Bath & Beyond, JC Penney, Michaels & Best Buy.
Where are these peoples employed , Quite SAD . AND OUR PRESIDENT is NOT HELPING……
Its a real shame how we are in a recesión and peo pile will not see it coming when in truth
It’s here all ready so stick to the basics shelter food transportation livestock