As many big stores close their doors this year, the retail industry is going through big changes.
The once-thriving retail chain, which was on the verge of bankruptcy, has decided to shut down all of its remaining stores. This ends its grand plans to bring back its physical presence.
Stores with bankruptcy issues
When Rite Aid filed for bankruptcy on October 15, 2023, it was because it was having trouble paying its bills. Rite Aid had closed more than 800 stores by September 2024, when it came out of bankruptcy. This was a big change in the way it did business.
In the same way, Walgreens Boots Alliance (WBA), a competitor based in Philadelphia, said it would close 1,200 stores that weren’t doing well over the next three years.
Walgreens has 8,000 stores, and 6,000 of them are thought to be making money. The company wants to focus on its most successful stores. In fiscal year 2025, 500 stores will close as part of the first wave of store closings.
Another big name in the business, CVS, plans to close 300 stores in 2024. CVS announced in 2021 that it would close 900 stores over three years, with 300 stores closing in 2022, 2023, and 2024. This decision is in line with that plan.
- Rite Aid: Exited bankruptcy in September 2024, closing over 800 stores.
- Walgreens: Plans to close 1,200 stores, with 500 closures in fiscal year 2025.
- CVS: Continues its strategic plan with 300 store closures in 2024.
This trend of closing stores shows how the retail industry is changing as businesses try to adapt to new market conditions and changing consumer habits.
In a big change of events, Big Lots, a store chain that used to sell a lot of home goods, has filed for Chapter 11 bankruptcy as of September 9, 2024.
It is planned to close 553 of its 1,392 locations in 48 states because of this decision. As things continue to go wrong, it’s likely that more store closings will be announced in the coming weeks.
The Impact on the Home Goods Retail Market
Big Lots was a big deal; in 2023, it had general operating revenues of $4.7 billion, making it the fourth biggest home goods store in the country. This bankruptcy is a big change in the retail world that will affect both customers and employees.
Buy Buy Baby’s Inevitable Closure
In other news, all of BuyBuy Baby’s stores will be closing. The store is famous for selling clothes, furniture, and accessories for babies. About a year ago, this decision was made after the chain tried to start over after Dream On Me bought it at the Bed Bath & Beyond bankruptcy auction in July 2023.
- Dream On Me acquired the BuyBuy Baby brand and digital assets for $15.5 million.
- They also secured 11 store leases at a cost of $1.7 million.
- Despite reopening, all stores are now slated for closure.
Before it ran into its own money problems, Bed Bath & Beyond ran about 120 BuyBuy Baby stores. In 2023, it filed for bankruptcy. The store scene is always changing, and these closings show bigger changes in how people shop and how hard the economy is hitting stores.
As a big change, Dream On Me has announced a transformation that fits with how shopping is changing. Ten BuyBuy Baby stores are open in seven Eastern states right now: Connecticut, Delaware, Maryland, Massachusetts, New Jersey, New York, and Virginia. But things are about to change.
