The number of store closings in the United States has outpaced the number of openings through early August of this year, according to a new report from Coresight Research. These closings have been fueled by a rise in bankruptcy filings by retailers.
According to the Aug. 9 report, 4,548 stores had closed so far this year. That number slightly beats the 4,426 announced store openings during the same period.
Coresight Research runs a weekly tracker charting the number of store openings and closings in the United States. The Aug. 9 report marked the first time this year that retail store closings are outpacing openings.
One big reason for the higher number of closings? This most recent Coresight report included the news that Columbus, Ohio-based Big Lots plans to close 302 stores in 2024.
Other big-name companies announcing store closures this year include Conn’s HomePlus, Rue21, Express and restaurant chain Buca di Beppo.
The Conn’s closures are significant. The furniture chain filed for bankruptcy protection in July and announced that it plans to close more than 500 of its stores. Family Dollar, though it has not filed for bankruptcy protection, plans to close 620 stores this year, while national pharmacy chain CVS says that it plans to close 315.
These store closings doesn’t mean that we are entering a retail apocalpyse, with the number of closures this year far smaller than what the industry has seen in the past. Consider 2020, the height of the COVID-19 pandemic. In that year, retailers closed 9,698 stores while opening just 3,704, according to Coresight.
In recent years, though, retailers were opening more stores than they were closing. Coresight reported that in 2023, the country saw 5,843 openings of retail stores compared to 5,548 closings.
