If you have a favorite store, you should probably visit it soon since some of the most popular retail chains in the United States are rapidly decaying and many locations are being shuttered at this very moment. According to UPS, over 50,000 stores are on retailers’ chopping blocks, and that could completely change America’s economic landscape.
Never before in history, conditions have been so turbulent for companies, and even big names like Rite Aid, Amazon, fresh, and big lots are taking extreme measures to try to keep their businesses alive. However, retail experts seriously doubt the ability of some of these chains to survive the imminent retail collapse.
We have compiled a series of retail stores that are at risk of going dark for good in the coming weeks and months, and some that are all liquidating all their assets and saying farewell to their customers.
1. Big Lots
Big lots have some big problems. The retailer offers a huge variety of products across several merchandising categories such as furniture that includes upholstery mattresses, case goods, and ready to assemble departments.
The company also covers the whole range of consumer products including beverages, groceries, candy, snacks, specialty foods, seasonal goods, and pet supplies. Soft home categories include bedding, bath, window, decorative textile, home organizer area rugs, and other home décor. Similar to traditional department stores, it also sells small appliances to table tops, food preparation, stationery products, home maintenance, organization products, and toys. But despite this by its massive product range, the chain is suffering with sales down 10% year over year, even as consumers eager for deals and low price Big Lots operates 425 stores in 48 States, but hundreds of locations have become unprofitable and may close soon.
This month, the company CFO, Jonathan Ramsden, announced that Big Lots has plans to close all of its stores in urban centers before the end of 2023. Retail experts are concerned about the overall financial health of the retailer which experienced a large cash burn in 2022 and is not expected to recover this year.
The company lost its largest furniture vendor in November. On top of that, for the fiscal year ending January 31st, the company reported a net loss of 200 and 10,7 million dollars, or $7.30 per share. All of this indicates that more turbulence is coming for the chain, and Big Lots’s loyal customers will probably have to say goodbye to their favorite store in the coming months.
2. Rite Aid
In the spring of 2022, the farmers each reported the closure of 145 stores, and more locations are about to go dark in 2023 Forbes recently reported. The company said over a hundred stores are underperforming for several quarters now. Whether providing a specific number, Rite Aid’s executive said the closings were meant to significantly reduce costs.
The company, which reported a quarterly loss of more than $67,000,000 on December 21 2022, is now bracing for even greater losses for its fiscal 2023 than it projected 3 months ago. I think what I would tell you is that there is an opportunity for more stores.
Rite Aid executive vice president and chief financial officer, Matt Schroeder, told analysts last month on a call to the fiscal 1st quarter earnings. The chain is slowly fading away from the US retail landscape and before people notice, it may be gone completely.
3. Bed Bath And Beyond
Bed Bath And Beyond. If you hoarded 20% off Bed Bath beyond coupons, you still have a couple of days to remember where you put them, so you can redeem them at stores before the company stops accepting them next week. After limping along entire straits for years, the retailer finally filed for chapter 11 bankruptcy and started to implement a severe cost cutting measure.
The retailers said it will go through complete liquidation. and it plans to close all of its 360 Bed Bath And Beyond locations and its 120 Buy Buy Baby Stores by June 30th if a last minute buyer doesn’t rescue it from going out of business. We can’t say that this business failure is entirely rooted in economic uncertainty.
A series of bad decisions by Bed Bath and beyond management led to the chain’s demise, and now a massive going out of business sale matched only by Toys R Us and Circuit city in the last 15 years has begun. Moreover, if you’re one of the many investors who piled into Bed Bath And Beyond stock when it was trendy, you should probably sell your shares while you still can. In bankruptcy proceedings, debt holders get prioritized over shareholders. So means start traders and retail investors will be left holding the bag.
4. Party City
The party is ending badly for party city, and now the chain is saying farewell to its longtime customers. At the beginning of 2023, the party goods and decorations retailer went bankrupt. The company cited many factors such as soaring inflation and shifts in consumer spending when the pandemic disrupted in person party celebrations the company struggled financially since it relied on social gatherings for revenue.
In November, the company announced plans that they were to reduce the corporate workforce by 19% when it was revealed that losses for 2022 could reach $200,000,000 On January 18th, it was announced that trading would hold and the stock would be delisted immediately. Party City reported $1,000,000,000 in assets, and 10,000,000,000 as in liabilities during the bankruptcy filing. Now all stores are in the process of closing down for good. They are the most recent retailer to not survive the current macroeconomic tailwinds.
5. Dollar General
While it portrays its store chainers, America’s neighborhood general store, Dollar General, is rapidly disappearing from US Cities. The Discount retailer recently confirmed its closing several locations in California, Colorado, Indiana, and Ohio. And the reason may also be the catalyst that drives the entire chain into bankruptcy, According to the US Department of Labor’s Occupational Safety And Health Administration, Dollar General Continues expose workers to unsafe conditions.
The US department inspected a large number of locations, and cataloged many as health safety violations, Dollar General has refused to correct. Since 2017, OSHA has issued more than 15,000,000 in fines, and cited Dollar General in more than a 180 inspections nationwide for numerous wilful, repeat, and alarming workplace safety violations related to unsafe conditions, exposing employees and others to these hazards can be dangerous, especially in an emergency, said the occupational safety and health administration regional administrator Kurt Peter Mayer in Atlanta. Dollar General is well aware of federal requirements, but they continue to ignore their legal responsibilities to protect their employees at stores throughout the nation. The struggling company is now facing another millionaire lawsuit. The one that can literally push it over the edge.
6. Tuesday Morning
Tuesday morning filed for bankruptcy a month and a half ago. The company stated that it had too many stores, most of them were located in unprofitable areas. The company intends to close out 264 of the 464 stores. Unfortunately, due to decreased foot traffic and in person sales, Tuesday morning had to file for Chapter 11 protection for the second time in 3 years, the retailer first filed for bankruptcy in 2020 during the COVID 19 pandemic. Now its financial strength is extremely shaky and retail analysts question whether or not the chain will be able to survive 2023.
7. CVS
A large chunk of CVS stores will be gone by theendoftheyear, CEO Karen Lynch announced. The company says that it plans to close 900 stores nationwide plagued by declining foot traffic, a weak assortment of products, empty shelves, supply chain issues, decaying interior declining sales, and rising competition. Industry analysts argue that the format of CVS stores is getting obsolete and If the company wants to weather the storm that’s brewing in the sector, it must rapidly adapt to consumer needs to prove its relevance in the market.
8. Amazon Go, and Amazon Fresh
Amazon is in cost cutting mode as its grocery retail business disappoints for yet another year. The retail giant is shuttering numerous Amazon Go Convenience stores, and Amazon Fresh stores, and will stop operating new branches.
The company doesn’t see a future for its cash yield grocery shops, and it’s retreating from the segment as it focuses on building a higher market share through Whole Foods, which has over 500 stores still standing. Last month, a handful of Amazon fresh stores were left vacant, the information reported. As it turns out, the downfall of both chains arrived sooner than anyone anticipated.
9. Nordstrom
The retailer is on Moody’s Analytics bankruptcy watch list as the retailer parker continues to hammer department stores the hardest. The company just shut down its operations in Canada. It’s also closing dozens of locations in the United states after sales collapsed by 40% in 2022. Analysts predict the retailer will be under pressure in 2023, especially as another economic downturn begins, and its profit margin is further squeezed by consumer recession.
10. Best Buy
This struggling Electronics retailer has been hanging by a thread over the past few years and quietly closing more store wars each year. Since 2019, over 80 Best Buy locations have disappeared from the site, and earlier this year, the chain announced plans to close a higher number of stores.
The company did not reveal the total number of closings. Media reports just that at least 6 hundred locations are in financial distress. That is over half of the retailer’s footprint in the US. inabizjournals.com article, Best Buy CEO Kari Barry predicted that supply chain issues were rising labor costs and continued economic challenges could lead to a major manufacturing slowdown that could rip through the market, she said. Best by executives set the expected business to continue to taper. Right now, they’re putting their strategies forward in an attempt to keep the business alive or at least part of it.
11. Children’s Place
The children’s place will shrink its brick and mortar footprint by half this year, all together, the Secaucus based children’s apparel retailer plans to close 265 stores, but has yet to share any details about which locations will be impacted. The apparel retailer has already permanently closed 586 stores including 315, dating to the onset of the pandemic.
The Children’s Place ended 2022, with 613 stores, that’s an 8.3% decrease from the prior year. Right now, only 500 30th is still open. In March, the Children’s Place reported $456,100,000 in net sales for the 3 months ending January 28 2023, which is a 10.2% decrease from the same period a year. go. It cited the impact of permanent store closures.
A pullback in consumer spending had met inflation concerns, and a weak holiday season in 2022, as factors for the decline. With even fewer locations in the market, Its future looks cloudy, and the odds are facing a financial breakdown arising.
12. Corner Bakery
Corner bakery is a vast casual cafe chain offering soups, sandwiches, salads, and pasta entries along with various breakfast and bakery items like cinnamon Rolls, muffins, bagels, and yogurt parfait. If that sounds like a broad menu, that doesn’t really have any defining specialties. Well, that may be part of the problem. The chain finished 2022, with 161 locations, but appears to have far fewer now at about 125. In 2021, Over two hundred locations were being operated all around the US.
The company has a net load of $33,800,000, A legacy of debt taken out in 2017, that investment firm, Pangi Group, inherited when it bought corner bakery from Rourke Capital and 2020. The bakery chain has been reporting falling revenue as demand sinks. In February, it sought Chapter 11 protection as it seeks to find another buyer to pay its debt and take control of the company. But considering its poor conditions, the chances that it survives this bankruptcy are very limited.
13. Mattress firm
Previously, Mattress Firm emerged from Chapter 11 in 2018 with a dramatically reduced footprint Now that vetting demand is in decline as consumers cut spending, the company is at serious risk of going out of business, according to Bloomberg, said assignments betting a major mattress manufacturer is planning to file for bankruptcy in the few months, which will likely leave Mattress Firm without a major supplier. In March, retail listed Steinhoff as having a 53 percent chance of filing for bankruptcy by the second quarter of 2023, that decay can occur even faster than predicted if consumer demand continues to decline at a 7% rate for another couple of months.
14. Kirkland’s
Kirkland has very shaky fundamentals, and is especially going through trouble with a recession unfolding, seeking alpha analysts noted. The company’s total revenue has decreased from $634,120,000 to $558,180,100,000 in the last three years.
Kirklands is having major difficulties in generating revenues and profits. The Home decor And Furniture Retail reported pointing earnings in the past quarter as sales, gross margin, and earnings have all been taking big hits. Durable goods including furniture see huge drops in consumption and manufacturing during recessions, which could pose significant threats to the future of the retailer, the analyst highlighted.
Therefore, we will apply a cell rating to Kirkland Stark. Weak, store traffic, and rising cars have made matters tough for Kirkland’s. Its shares have plunged nearly 32% in the past 3 months with little chance of rebounding in 2023 they wrote.
15. Express
Apparel retailers are particularly vulnerable to the next wave of retail bankruptcies, and Express is at the top of the list. Retail experts say the brand will likely become a casualty of the developing recession. The retailer, which targets women men with significant disposable incomes in the 18 to 30 age group, has been facing increasing backlash for its clothing’s limited sizes.
The men’s business accounts for 43% of apparel sales, but many of their items are extra slim slim, but nothing for men with a few extra pounds. The female side is 57% of apparel sales. And although it offers some items, for women who have a few extra pounds, most items are for females very careful about their weight. I think the biggest issue is that too many items are just too trendy and are often not something that can be worn more frequently. Just how often can a guy wear a lime green suit asks retail and Terry Fisher. All of the clothes designed by express are made overseas, which means they’re always slightly behind any new fashion trends because of the longer lead time between designing and the stores actually receiving the product.
Since they are highly left-handed, Express can’t afford to be wrong on their merchandise, and with their vendors becoming more restrictive in financing They could be in serious financial trouble in 2023, Fisher Morn’s. At this point, retailers must prove their worth to United States customers and show why they deserve a spot in this increasingly competitive industry. Only the best positioned brands will be able to navigate through the crisis that is developing across the sector, and many likely die out before the year ends. The stakes are incredibly high, and no one knows what may happen in the industry. So take the opportunity to go to your favorite store before a black swan event occurs drastically changing the scenario from bad to completely disastrous.
