US retail closures hit highest level since pandemic

Published On Nov 13, 2024, 7:00 AM

The U.S. retail sector is experiencing its highest level of store closures since the start of the COVID-19 pandemic, with a total of 6,481 closures recorded as of November 8, 2024. This marks a significant rise from previous years and is accompanied by an increase in bankruptcies, with 43 recorded bankruptcies so far this year compared to 25 in 2023. Key drivers of these closures include persistent inflation, rising interest rates, and higher operational costs, particularly impacting lower-income consumer markets. Companies like American Freight and Big Lots have been particularly affected, with the former closing all its locations as part of its bankruptcy proceedings. The retail landscape is shifting, with more closures than openings for the first time in years, indicating potential challenges ahead for many retailers.