Bidenomics: retail crisis caused more than 7,100 retailers to close by 2024

Retail sets a new negative record, with over 7,100 store closures announced through November—marking a 69% increase compared to 2023, according to CoreSight data.

Small businesses are not the only ones affected. Retail giants such as Walgreens and Family Dollar lead the charts, with pharmacy chains facing a steep decline from 2019.

Closures affecting giants

7-Eleven is one of the most affected by the downturn. Recently, it announced that it will close at least 400 stores due to underperformance. The company, which has 13,000 stores in the United States and Canada, reported the decision in an annual report. According to the information, the retailer has faced six consecutive months of declines, including a 7.3% drop in August.

The retailer 99 Cents Only Stores also announced that it will close the 371 stores it has spread across several states in the country - Arizona, Texas, Nevada and California. The company has already begun liquidating all of its business operations, including store sales. The reasons that led the management to take this drastic decision range from the poor economic situation to robberies.

The Body Shop, which sells cosmetics and perfume, reported it was ending all its operations in the country after declaring bankruptcy. It was one of the largest and most drastic closures of the year.

Macy's is another giant retailer that has been affected. Early in 2024 it announced that it would close 50 stores by the end of the year as part of its strategy to focus only on high performers, shutting down the locations that generate the worst results. Its ultimate goal is to close around 150 stores over the next three years. The company's CEO, Tony Spring, announced that they now expect "to close about 65 locations this year."

Walgreens announced the closure of at least 1,200 of its stores nationwide. It will progressively shut its doors over the next three years (500 branches will close in 2025 alone) in order to cut millions of dollars in costs. Likewise, the company explained a quarter of its 8,700 branches in the country are not profitable.

The retail chain Bob's Store also announced this year that it was closing the 21 stores still operating in the country. The company's president, Dave Barton, said in a press release that they were forced to close all of their stores because they were unable to "raise the finances necessary to maintain operations.”

The Family Dollar and Dollar Tree chains announced that they will close more than 1,000 stores over the next few years. Both companies said they were making this decision due to rising inflation. This not only hurts their customers' pockets but also brings in less profits.

The wave of store closures, affecting both large and small retailers, reflects the severity of the economic crisis that has unfolded under the Biden administration. This trend is driven by a mix of factors, including bankruptcies, inflation-weary consumers, restructuring efforts, rising theft and insecurity, and strategic adjustments by businesses.