A wave of closures hit the retail and restaurant sectors in 2024, with iconic brands like CVS, Wendy's, and Big Lots among those scaling back operations or shuttering entirely. Economic challenges and shifting consumer habits are driving the trend, The Hill reported.
According to data from Coresight, retail closures increased by 69% compared to the previous year.
Among the hardest hit was Advance Auto Parts, which announced the closure of more than 700 locations, including 523 corporate stores, 204 independent sites, and four distribution centers.
Furniture and appliance retailer American Freight will close all its stores following its parent company's bankruptcy filing. Similarly, Big Lots filed for Chapter 11 bankruptcy protection in September and has confirmed plans to close all its locations unless a sale is successfully negotiated.
Buybuy Baby has announced it will close all locations and focus exclusively on its online shopping platform.
CVS, the second-largest retail closure of 2024, plans to close 1,200 stores over the next three years, with 500 closures expected by the end of the current fiscal year. The company cited changing consumer behaviors and cost challenges as key factors.
Restaurants also faced widespread closures.
Wendy's announced plans to shutter 140 underperforming locations by year's end, though the chain continues to operate more than 6,000 restaurants nationwide.
Red Lobster is closing over 100 restaurants, reducing its U.S. presence to approximately 500 locations.
Denny's, seeking to revive its brand, revealed plans to close 150 low-performing restaurants. Half of the closures are expected this year, and the remainder in 2025.
Meanwhile, TGI Fridays shut down nearly 50 U.S. locations as part of a broader operational streamlining effort.
Discount retailers also struggled.
Family Dollar's parent company announced plans to close nearly 1,000 stores, including dozens of Dollar Tree locations. Meanwhile, Party City, grappling with years of financial difficulty, launched closeout sales after signaling plans to go out of business.
JOANN Inc. entered into a Transaction Support Agreement to bolster its finances, although its network of over 800 stores remains operational in the craft and fabric industry. Likewise, True Value, which filed for Chapter 11 bankruptcy, continues to operate its independently owned stores.
Other notable closures include Walgreens, which is phasing out 1,200 stores over three years, and Rue21, which announced plans to shutter all 540 of its locations after years of financial instability.
Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
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