Over 1,200 US retail stores are set to close in 2024, with Family Dollar leading the way in closures. This is part of a trend where at least nine retail brands have announced they will be shutting down their US stores this year. Other companies like Walmart and TJX are also closing a few stores while simultaneously opening many more.
According to UBS analysts, up to 45,000 US retail closures could occur over the next five years, primarily driven by smaller stores going out of business. However, larger firms like Costco and Home Depot are expected to continue expanding. Analysts predict that financial difficulties, changing shopping habits, and shifts in the retail landscape will contribute to these closures.
Despite this trend, some companies like Foot Locker and Macy’s are adjusting their strategies to adapt to changing shopping patterns. Financial difficulties have led some companies like Express and Foxtrot to face closure or bankruptcy. Meanwhile, Walmart and TJX are focusing on opening new stores and expanding their presence in the market.