Last week, American retailers announced the closure of 169 stores, bringing the total number of closures so far this year to nearly 2,600. Some of the major retailers included in this round of closures were Express, Outfox Hospitality, Shop ‘n Save, Urban Outfitters, and Walmart.
The trend of store closures has been ongoing as more and more consumers opt for online shopping and changing tastes in fashion and shopping habits. As of April 26, Coresight Research reported that there has been a 7.4 percent decrease in store openings and a 12.3 percent increase in closures compared to last year at this time.
Walmart, the largest retailer in the United States, announced the closure of one of its Neighborhood Market stores in Milwaukee, Wisconsin, which is set to close on May 17. The Neighborhood Market concept, which is a smaller version of the traditional Walmart store, has not been as successful as the company had hoped.
Discount grocery chain Shop ‘n Save also announced the closure of one of its stores in Pittsburgh, Pennsylvania, on May 13. The closure is due to the store’s inability to operate on smaller profit margins, which are necessary for city stores.
In a shocking move, Outfox Hospitality closed all of its stores, including 33 Foxtrot Markets and 2 Dom’s Grocery Stores in multiple states. The company, which started as an upmarket neighborhood grocery store in 2014, cited an inability to continue operations despite exhausting all options.
The famous fashion retailer Express filed for Chapter 11 bankruptcy last week and announced the planned closure of over 100 stores. The company, which also owns Bonobos and UpWest brands, listed assets and liabilities between $1 billion and $10 billion. As part of the restructuring process, Express will close 95 of its retail stores and all 12 of its UpWest stores.
Another clothing retailer, Urban Outfitters, has also closed 7 additional stores. This news comes after the retailer closed its store in the trendy neighborhood of Williamsburg in Brooklyn, New York.
The ongoing trend of store closures in the United States reflects the challenges that traditional brick-and-mortar retailers face in the era of online shopping. With customers becoming more price-conscious and shifting to online purchases, retailers must adapt and find new ways to attract customers to survive. As the retail landscape continues to evolve, it remains to be seen how many more store closures will occur in the coming months.
