5 Retailers Closing Stores in 2024

In a tough business like retail, store closures often say more about the company than the whole industry, says one expert.

Even during the best times, retail is hard work. While the industry had a strong start to 2024, several retailers announced plans to reduce their physical stores. Some even shut down completely due to bankruptcy.

For example, Foot Locker is sticking to its plan to close around 400 mall stores in the next two years. Best Buy, which closed 24 stores last year, plans to shut down up to 15 more this year. Walgreens also announced it will close about 1,200 stores over the next three years. Meanwhile, GameStop said it’s considering closing even more stores than before.

UBS analysts predict that around 45,000 retail stores could close in the next few years, with the biggest cuts expected in apparel, electronics, and home goods. But, the rise of stores doubling as fulfillment centers for fast deliveries shows the retail sector isn't fading away anytime soon.

UBS analysts describe this shift as a natural selection process, where bigger players like Walmart, Target, and Home Depot will thrive while others fall behind.

"Retail is a tough business," says Nick A Egelanian , president of SiteWorks . "You need both efficiency and consistency, and competition is always eating into your market."

He explains that when stores close, it’s usually because of one of three issues: legacy problems, poor operations, or just bad retail decisions—often made worse by being over-leveraged or owned by private equity.

Here are five retailers announcing store closures in 2024 and beyond:

1. Macy's After Tony Spring became CEO, he announced plans to close 150 Macy’s stores in the next three years. These stores accounted for a large portion of their space but less than 10% of sales. Macy’s has struggled to adapt to today’s retail needs, especially in the department store space. While Macy’s may survive, Egelnanian thinks it’ll shrink significantly.

2. Family Dollar Family Dollar, owned by Dollar Tree, is closing about 600 stores this year, with more closures planned in the future. The company is also considering spinning off or selling the Family Dollar brand. Dollar Tree has been growing, while Family Dollar is in a state of transformation.

3. Big Lots Big Lots is struggling and filed for Chapter 11 in September. After getting approval to close up to 315 stores, they planned a sale to investment firm Nexus Capital, but that deal fell through. Now, Big Lots is liquidating stores as they try to find a new buyer. Egelnanian points out that Big Lots made the mistake of expanding too quickly.

4. Express Express, the mall-based clothing retailer, filed for bankruptcy in April and plans to close all its UpWest stores and 95 of its regular locations. Phoenix Retail, backed by major mall owners, purchased most of Express’ assets. The trend of mall-based stores that don’t sell high-end goods is fading, Egelnanian says, and that’s part of Express’ downfall.

5. Salt Life Salt Life, known for beachwear, announced it would close all 28 of its stores after its parent company, Delta Apparel, filed for bankruptcy. Despite the closures, Salt Life products will still be available online and through other retailers.

Conclusion

The wave of store closures in 2024 reflects the ongoing challenges in the retail industry. While some closures stem from shifting consumer habits and overexpansion, others result from outdated business models or operational missteps. However, this isn’t the end of brick-and-mortar retail. Strong, adaptable companies are finding ways to thrive by innovating, focusing on efficiency, and leveraging physical stores as key parts of their omnichannel strategies. The message is clear: in the ever-changing retail landscape, only the most agile and customer-focused businesses will survive and grow.

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