Store Closures Surge In NY: See List Of Retailers Shutting Doors

NEW YORK — Some 3,200 brick-and-mortar stores, including many in New York, have closed so far this year, and more are expected to close through the remainder of the year, according to a new analysis.

Retail data provider CoreSight noted a 24 percent increase in store closures over last year as the retail industry adjusts to a shift in consumer shopping to online outlets, inflation and bankruptcies.

The 30 stores closing some or all of their locations range from anchor stores such as Macy’s and other mall apparel stores to drugstores and discount stores selling items for around $1.

“A lot of this year’s closures are related to bankruptcies of chains that have been in trouble for a while, like Rite Aid and Rue21,” Neil Saunders, managing director of GlobalData, told CBS MoneyWatch. “We’re also seeing several retailers, like Family Dollar, take action to weed out underperforming locations.”

Family Dollar led the retail reshuffling by closing 620 stores. A Family Dollar media representative Patch Tuesday that they had not released the number of stores, if any, that have been closed in New York so far. However, the stores that were shuttered have already been closed or are in the final stages of closing, the rep said.

The list of closures also includes traditional mall stores, including clothing retailer Rue21, which announced in May it would close all 543 of its stores as part of its Chapter 11 bankruptcy proceedings. That includes 10 of the casual women’s and men’s apparel chain’s stores remaining in New York, according to multiple reports

Other stores that have closed, or that are slated to close, in New York include some Rite Aid locations, Ashley, and more.

Recently, Stop & Shop, which has 100 stores in New York, announced that “underperforming” stores would close as “significant savings” remain a focus of parent company Ahold Delhaize. The fate of the more than 40 stores on Long Island — or any in the Northeast — was not outlined, however.

In February, Macy’s announced that it planned to close 150 underperforming stores amid slipping sales. It was unclear if Long Island stores were among those that will be shuttered. A Macy’s media representative told Patch Tuesday that they did not have a list of closures to share.

According to CoreSight, here are retail closures so far in 2024:

Family Dollar (620)
Rue21 (543)
99 Cents Only Stores (371)
CVS Health (315)
7-Elevan (272)
Rite Aid (165)
Express (105)
Walgreens Boots Alliance (77)
Macy’s (51)
The Body Shop (51)
Soft Surroundings (43)
Sam Ash Music (42)
Sleep Number (40)
Burlington Stores (39)
Foot Locker (36)
Foxtrot/Dom’s Kitchen & Market (35)
Carter’s (30)
Abercrombie & Fitch Co. (22)
Outdoor Voices (16)
Signet Jewelers (14)
Big Lots (13)
Ashley (13)
Dollar General (12)
H&M (10)
Allbirds (10)
American Freight (10)
Best Buy (9)
Mainline Pharmacy (9)
Alimentation Couche-Tard (9)
Ross Stores (9)

Consumer spending remains solid, rising 0.2 percent in April, according to the latest available government data. But confidence may be declining, according to the University of Michigan’s Surveys of Consumer sentiment. The consumer confidence dropped to 69.1 in May, down from 77.2 in April.

Jeffrey Roach, LPL Financial’s chief economist, told CBS news that “uncertainty about the inflation path could suppress consumer spending in the coming months.”

Also, Roach said in an earlier interview with CBS, consumers have mostly spent any federal pandemic stimulus money that may have temporarily bolstered their bank accounts. With those windfalls exhausted, consumers are likely to cut back on discretionary spending, he said.

Some retailers made strategic errors, Saunders told CBS. For example, Express, an apparel store specializing in workplace attire, “made too little effort to adapt” when they began working from home during the pandemic, Saunders said in a research note. Express said it would close 100 of its 500 stores as part of its bankruptcy restructuring.

UBS retail analysts led by Michael Lasser said in an April report by Retail Dive there’s too much retail space in the country, and third-party outlets such as Shein and Temu are expected to drive further online retail penetration, which is expected to increase to 26 percent from 21 percent.

Especially vulnerable are apparel and accessories, consumer electronics home furnishing retailers, according to the UBS analysts. The outlook isn’t entirely bleak for retailers. Although department stores are likely to continue to lose market share, off-price conglomerates such as TJK, whose banners include T.J. Maxx, could grab billions in sales from the closure of 150 underperforming Macy’s stores, according to analysts.

The 100-page UBS analysis said brick-and-mortar stores are “an important part of the overall retail ecosystem.”

“In the simplest terms, stores serve as hubs of fulfillment and support distribution logistics,” UBS said. “This is increasingly more important as consumers are becoming more demanding for convenience or immediate deliveries.”

Walmart, Target, Costco, Home Depot and other large retailers that have invested in customer experiences across all channels are best positioned to survive “a biological evolution similar to survival of the fittest,” UBS said in the analysis.