Walmart and other major US brands close more brick-and-mortar stores
More retailers are closing brick-and-mortar stores across the United States, with brands including Walmart and Dollar Tree citing unsustainable business models.
Some 1,290 stores have either closed or are earmarked for closure in 2024. As many as 169 stores shut in the last week of April alone, according to Business Insider.
Supermarkets and fashion brands appear to be worst hit. Clothing company Express announcing 95 closures last week, two Dom’s Kitchen & Market abruptly shuttere and 33 Foxtrot stores closed on 23 April.
“We explored many avenues to continue the business but found no viable option despite good faith and exhaustive efforts,” Express said in a statement.
“This decision has not been made lightly, and we understand the impact it will have on you, our loyal customers, as well as our dedicated team members.”
Urban Outfitters plans to close seven stores with its decade-old Williamsburg location up for rent.
In Walmart’s case, the chain announced it was closing one of its Neighborhood Market stores in Milwaukee on 17 May.
“Usually big-box retailers when they try to go small with city stores, it doesn’t usually work,” Marquette Marketing Professor Alexander Milovic told news outlet TMJ4. “A grocery store like that runs on smaller profit margins.”
The company also announced that it will be closing all of its health clinics, citing an unsustainable business model, on Tuesday.
Grocery chain Shop ‘n Save announced that one of its stores in Pittsburgh will close in May although this will make way for a new Aldi store.
“Year to date, in 2024, major US retailers have announced 7.4 percent fewer openings and 12.3 percent more closures compared to the same time last year,” a Coresight Research report found.
In March, Dollar Tree announced it would close 600 Family Dollar stores in 2024. A further 370 will shut once their leases expire in the coming years. The company has been affected by rising inflation and shoplifting, CBS News reported.
Macy’s announced earlier this year that it would close dozens of “underproductive” stores while CVS is also in its third year of store closures to address changing customer needs.
