Route 1 Round Up | Q4 2024

By Andrew Ward & Timothy Braseth

The news has been full of stories of national retail chain closures, including Bed Bath & Beyond, Container Store, LL Flooring, Party City, Big Lots, Advance Auto Parts, Rite Aid, JOANN Fabric and Crafts, and Walgreens. Retail closures were up 69% in 2024, exceeding store openings according to Coresight Research and the National Retail Federation. This was a significant change from 2022 and 2023 when there were more store openings than closings.

The reasons for closures aren’t always lack of sales, as foot traffic and retail sales continue to surge, surpassing pre-Covid levels. Some chains like Red Lobster hurt themselves by selling their real estate to a sister company that then charged above market rate rents, all for momentary improvements to the bottom line at the cost of sustainability. The big drug store chains suffered from changes in prescription drug reimbursements and the massive national opioid settlements forcing them to close underperforming stores. Online shopping has taken its toll. And very often, it’s simply the private equity business model of overleveraging assets, stripping them of cash, then declaring bankruptcy - rinse and repeat.

How do 2024’s closures affect the NH Seacoast? Route 1 is home to many current and former chain stores and restaurants. This Route 1 Round Up issue will look at the recent turnover on Lafayette Road from Seabrook to Portsmouth.

What stores closed in 2024 or are soon to close?

? Advance Auto Parts | 2299 Lafayette Road, Portsmouth: closing in February 2025. 700 of the 1,781 stores nationwide are scheduled to close due to underperforming sales. This 6,889± SF single tenant retail building on 1.42± acres is soon to be listed for lease.

? Family Dollar | 920 Lafayette Road, Seabrook: closed in January 2025. One of 600 Family Dollar stores in the first wave of 1,000 store closures announced by parent company Dollar Tree which is retaining their nearby Dollar Tree store at 756 Lafayette Road. Of the remaining 7,000+ stores, there are expected to be more closures or conversion to the Dollar Tree brand.

? Rite Aid | 356 Lafayette Road, Hampton: closed in August 2024. As previously reported in Q3 2024 Route 1 Round Up, this 9,000± SF space, along with the entire retail plaza it is a part of, sold to long-time restaurant tenant Las Olas Restaurant for $2.425 million. Las Olas owner, Matt Burke, plans a revitalization of the entire property.

? Outback Steakhouse | 712 Lafayette Road, Seabrook: closed in February 2024. This 5,731± SF purpose-built restaurant on 1.76± acres is soon to be demolished and replaced with a Chick-fil-A (see “What’s new?” section).

? JOANN Fabric & Crafts | 270 Lafayette Road, Seabrook: closing in Q1 2025. 12,000± SF in the Seacoast Shopping Center is soon to be vacated as they close 500 of their 850 locations in 2025.

What’s surviving?

? Advance Auto Parts | 738 Lafayette Road, Seabrook. One of 1,000-plus stores surviving the 700 store closures and occupies company-owned real estate.

? LL Flooring/Lumber Liquidators | 5 Lafayette Road, North Hampton: One of 219 LL Flooring stores bought out of bankruptcy and rebranded back to their original name, Lumber Liquidators, by the original founder, Tom Sullivan, and his private equity firm F9 Investments. The deal is expected to close in September 2025. 211 stores that were not part of the F9 deal are closing.

What’s new?

The long-closed Burger King at 2255 Lafayette Road in Portsmouth has recently reopened as a Common Man Roadside with no change in ownership of the land. According to public records, the land has been owned by Mastoran Restaurants of Waltham, MA, since 2001.

Chick-fil-A has announced a second location in the Seacoast (fifth in NH). The popular purveyor of poultry will be replacing the now vacant 5,800± SF Outback Steakhouse restaurant at 712 Lafayette Road in Seabrook with a 5,200± SF restaurant with a drive-thru. This follows the company’s successful 2024 opening at 2060 Woodbury Avenue in the Newington mall.

Vacancies generally don’t last long on Route 1 as it continues to be one of the most vibrant, high-traffic commercial corridors in the Seacoast, if not the state.

To view the full report, click here.

Stay informed, stay engaged, and as always enjoy the ride on Route 1!