The US retail sector experienced significant difficulties in 2024, with a notable surge in store closures. According to Coresight Research, 7,327 retail stores closed across the nation, representing a 57.8% increase compared to 2023.

Although certain retail segments saw growth, the majority of chains faced challenges in adapting to evolving consumer behaviors, ongoing inflationary pressures, and the lasting effects of the pandemic, as reported by Quartz.

The continued expansion of e-commerce is also reshaping the retail industry, creating additional obstacles for brick-and-mortar stores to remain viable.

Surging Store Closures

In 2024, major US retailers grappled with unprecedented challenges. While there was a modest 8.2% increase in new store openings, the number of closures significantly outpaced openings. Discount stores, drugstores, and home and office supply chains were among the hardest hit.

The persistent shift toward online shopping has resulted in fewer customers visiting physical stores. Consequently, many retailers are struggling to adapt their operations to meet the demands of this new retail landscape.