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IPFS News Link • Business/ Commerce

True scale of US retail bloodbath revealed: How a 5,500 shops have closed in just one year...


US retailers shut a total of almost 5,500 stores in 2023 - with major brands like Bed Bath & Beyond, Walgreens and Rite Aid leading the pack.

The closures affected a whole range of sectors, from clothing stores to discount stores and drugstores, as American commerce increasingly takes to the internet.

But the home and office sector was hit hardest, accounting for more than 30 percent of all closures - more than twice the amount in 2022.

Driving the high tally was that many retailers, such as Bed Bath & Beyond and Tuesday Morning, went bankrupt in 2023 and closed almost all stores as a result. Other retailers, like Signet Jewelers, announced closures amid generally poor sales.

Many retailers, like Walgreens, pointed to escalating theft as an explanation for their dwindling profits and decision to close locations.

Total closures were 5,463, according to the latest estimates from advisory firm Coresight Research. That is a 30 percent increase on 2022.

Bed Bath & Beyond reported it would shut 866 stores, far more than any other retailer, according to the report.

That high count is because it filed for bankruptcy in April and liquidated all locations within months.

Its closures accounted for around half of the total that affected the home and office sector.

Walgreens came in second, having closed some 505 stores and bringing its total down to 8,880.

In June, the drugstore reported poor earnings in the face of reduced consumer spending and revenue from Covid vaccines.