Formerly bankrupt retail chain closes all remaining stores
According to The Street, The list of major retailers closing store locations this year continues to grow, reflecting ongoing challenges in the retail industry.
Rite Aid’s Bankruptcy and Store Closures
Giant drugstore chain Rite Aid, which filed for bankruptcy on October 15, 2023, has announced the closure of over 800 stores as it exits bankruptcy, expected to be completed by September 2024. This significant reduction highlights the struggles faced by the company in a competitive market.
Walgreens to Shut Down Underperforming Locations
Walgreens Boots Alliance (WBA), a rival to Rite Aid, operates approximately 8,000 stores but revealed on October 15, 2024, plans to close 1,200 underperforming stores over the next three years. Of these, 500 closures are scheduled for fiscal year 2025. This decision underscores the ongoing challenges even well-established chains face in maintaining profitability.
CVS Joins the Trend of Store Closures
CVS, another competitor in the pharmacy sector, is expected to close 300 stores in 2024 as part of its strategic plan to shutter 900 locations over three years. This plan, initiated in 2021, involves closing 300 stores each year from 2022 to 2024, further demonstrating the shifting landscape of retail.
Big Lots Faces Bankruptcy and Significant Reductions
Bankrupt home goods retailer Big Lots filed for Chapter 11 bankruptcy on September 9, 2024. The company has already designated 553 of its 1,392 locations across 48 states for closure. As the fourth-largest home goods retailer in the U.S., with general operating revenues of $4.7 billion in 2023, Big Lots’ struggles may lead to more closure notices in the near future.
BuyBuy Baby Shifts to Digital-First Model
In a surprising move, baby clothing, furniture, and accessories retailer BuyBuy Baby will shut down all of its stores just a year after resuming operations. This follows the brand’s July 2023 sale to Dream On Me during the Bed Bath & Beyond bankruptcy auction.
Dream On Me acquired the BuyBuy Baby brand and its digital assets for $15.5 million, along with 11 store leases for $1.7 million, and initially reopened the chain with 10 stores in seven Eastern states: Connecticut, Delaware, Maryland, Massachusetts, New Jersey, New York, and Virginia.
Transitioning to an Online-First Strategy
On October 18, Dream On Me announced through its website that all BuyBuy Baby stores will close by the end of the year, transitioning to a digital-first brand for online shopping.
“The demand of consumers has changed, and as such, so are we,” BuyBuy Baby stated in a release to Retail Dive. “Based on the feedback from our loyal customers, we are shifting away from the brick-and-mortar model for the near future and redefining ourselves as a digital-first brand.”
The company will begin store closing sales on October 18, with all sales final. Purchases made before this date will still adhere to BuyBuy Baby’s standard return policy, and gift cards will be accepted until October 31. After that, they can be redeemed online at buybuybaby.com.
Conclusion: A New Era for Retail
The recent announcements from these major retailers reflect significant changes in consumer behavior and the ongoing evolution of the retail landscape. As companies adapt to shifting demands, the emphasis on digital shopping is likely to continue reshaping the future of retail.
