Big box stores have long been the behemoths of consumerism, dominating the market with their vast spaces and extensive product offerings. However, some big box retailers are on the verge of bankruptcy and collapsing right in front of our eyes. Let’s look at 20 big box retailers struggling and investigate the elements causing their problems. Target announced today that it’s closing nine stores in major cities. These closures are in addition to the only two Portland Walmart’s shutting down. Big box stores have long been the behemoths of consumerism, dominating the market with their vast spaces and extensive product offerings. However, some big box retailers are on the verge of bankruptcy as the retail industry faces seismic shifts caused by shifting consumer behaviors, e-commerce rivalry, and economic uncertainty. Let’s look at 20 big box retailers struggling and investigate the elements causing their problems. Continued (FULL TEXT) below the video, for those who prefer to read
One notable case is Target, which had to say goodbye to four locations in May 2023. They blamed it on less foot traffic, especially hitting those cute little urban-style stores. Maryland, Virginia, Minnesota, and Pennsylvania felt the impact. Then come October 2023, nine more stores, even one in the Big Apple, had to close shop due to serious theft and what they call organized retail crime in those areas. Despite these closures, Target is still strong with almost 2,000 stores all over the US, even keeping three spots on Staten Island.
In 2023, Walmart shook things up by shutting down 20 stores across 12 states and even Washington DC. The reason? These places weren’t pulling their weight financially, and the crazy amount of retail theft wasn’t helping Walmart’s overall money gain. The hit list included states such as Arkansas, Georgia, Florida, Hawaii, Illinois, Indiana, Minnesota, New Mexico, Oregon, Texas, Washington, Wisconsin, and Washington DC. But let’s not count Walmart out just yet; they’re still a retail powerhouse with a whopping 4,616 stores doing their thing all over the nation.
Party City, the go-to place for balloons and all things celebration, has hit a rough patch. Prices were up, and individuals were tightening their wallets, and it was no party for them. What did they do? They went big and filed for Chapter 11 bankruptcy in January. The aftermath saw store closures left and right as Party City tried to figure out the retail game. Fast forward to April 2023, and if you swung by the New Dorp store, you’d see signs screaming clearance and store closing. Despite the setbacks, Party City’s not throwing in the towel just yet; they still got the party going with two stores up and running on Staten Island.
Staples, the well-known office superstore, underwent strategic changes in the preceding years. The company closed over 200 stores before 2020, implementing a significant downsizing initiative. Among these closures was the Forest Avenue facility in Port Richmond, which closed in 2017 and was replaced with a Target store. The Staten Island market was further consolidated in March when Staples announced the closure of its New Springfield location. This particular location, which shares a parking lot with Dick’s Sporting Goods, Starbucks, and The Vitamin Shop, became part of a larger push to maximize the company’s retail footprint.
Rite Aid, a prominent pharmacy chain, officially filed for bankruptcy in October, succumbing to considerable debt, declining sales, and over 1,000 lawsuits at the federal, state, and local level. With two operational stores on Staten Island, the company faced intense competition from larger brands such as CVS and Walgreens. The financial strain for Rite Aid became evident as deteriorating sales contributed to an accumulated debt of approximately $3.3 billion. In March 2023, the Justice Department filed a complaint against Rite Aid, alleging the improper filling of prescriptions for excessive quantities of opioids with clear indicators of misuse. Recently, Rite Aid announced plans to close 31 stores across a dozen states, bringing the total number of recently shuttered pharmacy locations to 200.
David’s Bridal, the top spot for wedding dresses, found itself in a bit of a pickle, diving into bankruptcy proceedings in early April. Why? Blame it on inflationary pressures and major changes in the wedding scene. They even gave a heads-up to the Pennsylvania Department of Labor, saying they might have to let go of 9,236 positions across the United States. Here’s the twist: they’re keeping the doors open during this whole financial makeover. Talk about commitment. Brides, don’t fret; all those dreamy orders will be served without hiccups. And if you’re a tech-savvy bride, fear not; David’s Bridal’s online platforms are still in the game, ready for all your wedding planning adventures.
In August 2023, Christmas Tree Shops closed their doors permanently. Owned by Handel Holdings, the chain filed for Chapter 11 bankruptcy in May 2023 to restructure its finances. Initially, 10 stores were closed to ensure long-term success and to reduce the company’s debt. However, the restructuring process took an unexpected turn when Handel defaulted on a $45 million loan to support normal business operations during Chapter 11. With 70 stores across 20 states, including one in the vacant Charleston Shopping Plaza, the chain faced challenges in maintaining operations and ultimately closed its doors for good.
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As consumers increasingly turn to online electronics retailers, Best Buy needs help maintaining foot traffic. The shift to digital formats for entertainment and electronics further compounds the issue. In March, Best Buy CEO Cory Barry stated that the company would close 17 shops around the US. She also stated that this is common, as Best Buy usually closes 15 to 20 traditional large-format stores yearly as part of its standard lease review process. Barry remarked that Best Buy sales are increasingly shifting online rather than to physical stores. Barry reported that 33% of their fiscal year 2023 revenue came from internet sales, compared to 19% in fiscal year 2020.
Home improvement big box retailers like Home Depot face challenges as online alternatives gain popularity. Consumers increasingly turn to e-commerce for their DIY needs, impacting the traditional brick-and-mortar model. In May 2023, the store reported weak first-quarter revenues and dropped its year-end forecast after customers reduced their spending. Home Depot reported that sales at locations established for at least a year fell 4.5% in that quarter, while revenue fell 6.4% compared to the same period a year ago. Total revenue for the quarter fell 4.2% from the previous year to $37.3 billion. The store also blamed dropping lumber prices and weather-related issues such as severe rains in California during the period for reducing sales. “After three years of unprecedented growth for our sector, during which we grew sales by over $47 billion, we expected that fiscal 2023 would be a year of moderation for the home improvement market,” Ted Decker, the Chief Executive Officer of Home Depot, said.
Like Home Depot, Lowe’s confronts challenges in the face of growing online competition. Adapting to changing consumer habits while maintaining a large physical footprint becomes a complex balancing act. While it’s natural for some stores to close, and it’s quite frankly expected, Lowe’s is dedicated to maintaining a strong physical presence nationwide. The focus is on optimizing the store network rather than significantly reducing its retail footprint. By carefully assessing the profitability and potential of each location, Lowe’s aims to make its physical stores as effective as possible. This strategy ensures the company can continue providing its loyal customer base with a diverse range of home improvement products and services. Throughout this process, Lowe’s prioritizes meeting its customers’ needs and preferences, aiming to offer convenient and accessible shopping experiences. The company uses data analytics and customer feedback to make well-informed decisions about store closures, ultimately enhancing the overall customer experience. So, who knows, they might just make it through the year.
Bed Bath and Beyond, this particular big box retailer, has already gone under. Bed Bath and Beyond struggled with the transition to e-commerce and faced challenges from specialized online retailers. The shift in consumer preferences for goods exacerbated the situation. Now, Bed Bath and Beyond stores have been formally closed, but customers may still browse the company via its rebuilt website and app. Overstock purchased Bed Bath’s intellectual property and dropped its name to increase sales, attract new consumers, and establish itself as a go-to home goods company. Customers who download and use the new app will get a 25% discount coupon. Is that something maybe you’d be trying?
Office Depot, with the decline of traditional office spaces and the rise of remote work, needs help maintaining its relevance. The shift to digital document management and reduced demand for office supplies in physical stores adds to its woes. In November 2023, Office Depot closed two stores, both located in Illinois. According to the Belleville News-Democrat, the Office Depot at 303 East Homer Adams Parkway in Alton, Illinois, saw its final business day on November 11th. Although employees confirmed the outlet’s closure, they could not provide a specific reason. Another Office Depot in Chicago’s Hyde Park Shopping Center at Lake Park Avenue also closed. The interim manager informed the Hyde Park Herald that operations at this location would wind down, allowing for the pickup of remaining fixtures. The store’s last day in business was on November 11th. “It’s been here for quite a while, so there’s a strong tie for a lot of the customers in the area,” he told the outlet, acknowledging the disappointment expressed by shoppers. “The news is kind of a shock to everyone. Hyde Park customers are really underserved.” Responding to the closure of the Hyde Park store, Office Depot informed the Hyde Park Herald that the decision was made to optimize its retail footprint, aligning with a nationwide plan as the company actively moves away from its brick-and-mortar stores.
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Sears’s last store in the New York metro area is calling it quits, leaving only around a dozen Sears locations still standing. Just across from Manhattan, the Jersey City spot spilled the beans on Facebook about its upcoming store closing sale, wrapping up its almost four-decade stint as a key anchor for the Newport Center Mall. No official closing date yet, though. Once upon a time, Sears had at least 11 stores in New Jersey, but they’re all either closed or are on the brink. Since the 2018 bankruptcy shakeup that saw hundreds of closures nationwide, after saying goodbye to the Jersey City spot, the closest Sears for Big Apple shoppers is a whopping 227 miles from New York in Braintree, Massachusetts. In its glory days, Sears and Kmart boasted a whopping 3,500 US stores and over 300,000 employees after their merger in 2005. Fast forward, and now just over a dozen Sears are left in the continental US. Here’s a fun fact: two Sears spots recently snuck back onto the scene, one in Burbank, California, and the other in Union Gap, Washington.
Joe Biden is gaslighting again. The US economy was infinitely better under President Trump than it is now. Trump lowered corporate taxes which brought jobs back to the US. Inflation was down, wages were up and prices were low. We need Trump back to save America. – Paul Szypula
As a subsidiary of Sears, Kmart faces similar challenges. The decline in foot traffic and increased competition from online retailers have pushed Kmart to the edge. JC Penney needs help finding its footing in a rapidly changing retail landscape. The shift towards online shopping and changing consumer preferences for apparel pose significant challenges. Macy’s faces challenges in the highly competitive fashion retail sector. Online competitors, fast fashion trends, and changing consumer behaviors threaten the traditional department store model. Macy’s will close five stores permanently. The closures are part of a larger move, originally reported Thursday by The Wall Street Journal, in which the store will eliminate approximately 2,350 positions. “As we prepare to deploy a new strategy to meet the needs of an ever-changing consumer and marketplace, we made the difficult decision to reduce our workforce by 3.5% to become a more streamlined company,” according to a spokeswoman for Macy’s. The company announced in late October there were approximately 500 Macy’s locations. Macy’s also owns Blue Mercury and Bloomingdale’s. The afflicted Macy’s locations in four states will host clearance deals for 8 to 12 weeks. Macy’s has decided to close the following stores: Macy’s Ballston in Arlington, Virginia; Macy’s Bay Fair in San Leandro, California; Macy’s Kukui Grove in Hawaii; Macy’s Simi Valley Town Center in Simi Valley, California; and Macy’s Governor Square in Florida.
Despite its membership-based model, Costco needs help in the e-commerce space. Balancing the allure of bulk purchasing with the convenience of online shopping presents a unique set of hurdles. Like Costco, Sam’s Club contends with the challenges of the big box store model. Adapting to online shopping trends while maintaining a membership-based business model poses a significant challenge. Dick’s Sporting Goods grapples with increased competition from online sports retailers. The shift towards specialty online stores and declining in-store sporting goods purchases threaten its survival. As e-books and online bookstores gain popularity, Barnes and Noble needs help maintaining its physical bookstores. The loss in foot traffic and the advent of digital reading platforms exacerbate its problems.
How do you think these big box stores will end the year 2024? Is there hope at all, or would they completely vanish? We ask because several retailers, including grocers, clothing stores, and franchise food establishments, have announced their closures. Simultaneously, as the retail landscape evolves, big box stores must deal with e-commerce, shifting consumer patterns, and economic uncertainty. While some of these 20 stores may discover new methods to adapt and survive, others may succumb to the constraints of today’s retail environment. Only time will tell which big box stores will survive the storm and which will be victims of the changing retail landscape. We can’t wait to hear your thoughts in the comments, and thanks for watching.
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‘The Empire is Over’: America’s Long Economic Decline
Don’t believe the media hype about the US economy’s “strong performance,” warns Professor Richard Wolff. Despite recent upbeat statistics, an economic and geopolitical storm is brewing – one that Biden can’t handle. pic.twitter.com/YgLcQ5atqs
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