Retail Apocalypse Accelerates: Over 3,200 Stores to Close in 2024 Amid Inflation Surge

As inflation and soaring operational costs continue to plague businesses, an increasing number are declaring bankruptcy and shuttering operations across the United States.

Inflation remains a paramount concern among voters, as evidenced by findings from The Center Square Voters’ Voice Poll, underscoring its impact on economic stability.

According to a recent analysis by CoreSight Research, the retail sector is bracing for the closure of nearly 3,200 stores this year, marking a significant 24% increase compared to closures in 2023.

The closures are not just limited to one sector but have particularly hit US drug stores and pharmacies hard, resulting in the closure of approximately 8 million square feet of retail space nationwide.

The report also sheds light on the pervasive issue of “retail shrink,” attributed largely to organized retail crime, which continues to erode profits and customer trust.

Among the closures, about 30 retailers are responsible for the bulk of shutdowns, with Family Dollar leading with plans to close over 600 stores, as detailed in CBS News reports.

In a recent announcement, iconic household brand Tupperware disclosed plans to permanently shutter its last remaining US production plant in Hemingway, South Carolina. This move will affect all 148 employees, who will be laid off in phases starting from September through January.

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Meanwhile, Rue21, a popular teen apparel chain, recently filed for bankruptcy and is slated to close all 540 of its stores. The decision comes amidst mounting debts and challenging economic conditions exacerbated by inflationary pressures, according to CNN.

Adding to the list of closures, 99 Cents Only, headquartered in California, filed for bankruptcy in April, citing enduring challenges in the retail landscape over recent years. The chain intends to close all 371 of its stores, as reported by the Los Angeles Times.

These developments highlight the deepening crisis in the retail sector, where businesses are grappling with financial strains compounded by inflation, economic uncertainties, and evolving consumer behaviors.