Big retailers face numerous challenges as many struggle to stay afloat. Factors such as e-commerce, rising operating costs, shifting customer demand, market oversaturation, and borderline monopolies have caused many companies to close their doors. While the prospect of ‘going out of business’ sales may seem exciting for consumers, the long-term effects could be catastrophic. If only a few companies produce goods, we could see a reduction in variety and quality. Here are 15 big-name brands that will close their doors this year.
Joann Fabrics
Joann Fabrics, a staple for art-crafting materials for over 80 years, has been a go-to for crafters, DIYers, and hobbyists. In January of this year, the retailer filed for Chapter 11 bankruptcy a second time, citing substantial debt and decreasing sales. The company is reportedly looking to close some stores, with estimates ranging some 500 locations, although the exact number hasn’t been confirmed. While crafters, DIYers, and hobbyists will mourn the loss, liquidation sales provide a silver lining. If you are into scrapbooking, knitting, beading, or other artsy projects, the closures will be a massive loss to the arts and crafts community.
Big Lots
Since claiming bankruptcy last year, Big Lots!, a major discount retailer, plans to close 200 stores. At the beginning of the year, the company had 1,392 operating stores—now closer to 872. The retailer has provided consumers with budget-friendly options for name-brand and off-brand goods such as furniture, electronics, groceries, kitchenware, and more. The Ohio-based company cites high inflation and interest rates, declining sales, and net losses as factors for the decision. The store closings reflect growing issues that continue to plague the retail sector.
Advance Auto Parts
In an attempt to curb losses, Advance Auto Parts plans to close underperforming stores this year. This includes corporate-owned and independently operated stores as well as a handful of distribution centers. The company sells various automobile components, including tires, batteries, wiper blades, motor oil, air filters, brake pads, and more. Declining sales and high operating costs are to blame. The company will shift its focus to regional stores and streamlined processes, continuing to serve its loyal customers.
Select Fashion
Select Fashion, a UK-based retailer, has provided fashionable and affordable women’s clothing since the early 1980s. However, facing financial difficulties, the company plans to close 12 of its 105 stores. While the company has offered a variety of fashionwear, including casual wear, workwear, dresses, outerwear, activewear, shoes, and accessories, it cites sustained losses and challenging market conditions as the reasons for the decision. The closures are expected to affect approximately 350 employees.
Mosaic Brands Limited
Mosaic Brands Limited is an Australian retailer that operates under numerous clothing brands such as Millers, Rockmans, and Noni B. The parent company appointed an external administrator to help straighten out a debt of $318 million. They announced mass store closures by the spring of this year. Efforts to sell Millers and Noni B were unsuccessful and will lead to a liquidation of all their locations. The decision will affect its target consumers, who are women over the age of 50.
Kroger
In 2024, market regulators blocked the merger between Kroger and Albertsons. The merger was predicted to hurt consumers, raise prices, and reduce competition. As a result, Kroger is restructuring its strategic plans. The supermarket retailer has already closed two stores, one in Texas and another in Tennessee. Reportedly, it plans to close over 22 locations by the end of the year. These decisions result from its unsuccessful plans to take over the US grocery market.
Walgreens
Walgreens is one of the largest pharmacy chains in the country, with over 8,000 stores in all 50 states. Initially focused on prescription and over-the-counter medicine, the company also sells a variety of beauty, health, and wellness products. However, Walgreens will close over a quarter of its stores over the next three years. The move is part of a strategic plan to focus on the best-performing stores. If Walgreens is your pharmacy, check online to see if your local store will be affected.
Party City
Party City, a retail chain specializing in party supplies and decorations, is closing 700 of its 800 stores. Last year, the parent company, Party City Holdco Inc., filed for bankruptcy a second time, citing sustained inflation and declining sales as the reasons for its decision. While most locations in the U.S. will close, international locations in Puerto Rico, Canada, and Hawaii will continue to operate. It’s time for the guests to go home.
7-Eleven
In 1946, Tote’s, a small ice house and convenience store located in Texas, was rebranded to reflect its store hours—7 am to 11 pm, which was unusual at the time. Many locations are open 24 hours, offering snacks, beverages, and ready-to-eat meals, catering to both early risers and night owls. Last year, the company announced its plan to close 444 underachieving stores. Inflation, declining cigarette sales, and shifting customer preferences are reasons for its decision. You’ll still be able to get a Slurpee, its staple frozen carbonated beverage, but only at the remaining stores.
Macy’s
Since its beginning in 1924, Macy’s Thanksgiving Parade has maintained its longstanding tradition. Every year, the event draws millions of in-person and television viewers to watch musical performances and their favorite characters float through downtown Manhattan. On the business side, the department store chain has struggled to remain profitable. This year, it plans to close 66 stores. The new strategy will allocate its resources to the remaining 360 locations.
H&M
H&M is a multinational clothing retailer originally from Sweden. It has nearly 5,000 stores in 70 countries. The company has been a dominant force in fast fashion, an industry that prioritizes affordability and rapidly changing trends. The company announced it would close 160 stores to compete in a global market while opening 100 new stores. Consumers are becoming more eco-conscious, and H&M is trying to shift to more sustainable practices. The fashion retailer hopes to continue providing affordable and fashionable options for men and women.
Gap
The Gap offers a variety of clothing to men, women, children, and babies worldwide. The parent company, Gap Inc., operates Gap, Banana Republic, Old Navy, and Athletica in over 40 countries. The company has been a dominant force in the fashion industry for more than five decades. By the end of 2023, about 350 Gap and Banana Republic stores in North America closed. The decision is on par with many other retailers trying to adjust to an evolving market.
Victoria’s Secret
Since the early 1980s, Victoria’s Secret has been a leading figure in the lingerie and womenswear markets. Owned by L Brands (which also owns Bed Bath & Beyond), the company has closed brick-and-mortar stores to focus on its e-sales. As shopping malls worldwide become obsolete, numerous stores in Canada and the United States have closed. This year, they plan to close locations in Oregon, Iowa, and Dublin. Consumers can continue to shop at Victoria’s Secret online.
Bed Bath & Beyond
Bed Bath & Beyond has become one of the largest home retailers in the U.S. by offering various products, including bedding, kitchenware, furniture, bathroom accessories, and decorative items. However, the past few years have been difficult for the company, with declining sales and intense competition from big-box stores such as Target and Walmart. In 2023, the company filed for bankruptcy and liquidated its North American stores. Overstock.com has acquired its intellectual property and has shifted its focus entirely to online sales.
JCPenney
Founded at the turn of the 20th century, JC Penney, a department store chain, offers various merchandise such as men’s and women’s clothing, furniture, beauty products, jewelry, and other home goods. Over the past five years, declining sales and shifting consumer preferences have contributed to the company’s financial struggles. In 2020, they filed for bankruptcy and closed numerous stores. However, JC Penney has announced two store closures for this year, while 600 stores continue operating in the U.S.
