The U.S. retail landscape has faced a challenging couple of years. In 2020, the pandemic pushed many retailers into bankruptcy and led to an avalanche of store closures across the country. As companies have struggled to bounce back, new challenges such as record-high inflation have made the path anything but steady. Despite this, there has been some clear progress overall. According to the National Retail Federation (NRF), U.S. retailers announced nearly seven times as many store openings as they did closures during the first part of 2022. But store closures are still happening, and one popular retail chain is making cuts. Read on to find out which retailer is shuttering stores in October.
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Several retailers are planning closures for October.
iStockDespite some positive news from the NRF, more than one retailer is planning to close stores next month. In fact, many companies have previously confirmed October closures. Starting Oct. 5, CVS will be closing several stores as it continues plans to pare down its retail footprint throughout the next few years. Then just a few days later, several grocery stores will begin closing around the country, including a Kroger in Indiana on Oct. 7.
Next month is even bringing about the end of an era: The last remaining Sears location in New York will shutter for good on Oct. 16, Mid-Hudson News reported. And now, another popular retailer is adding its name to the long list of October closures.
This popular chain is closing locations next month.
iStockAccording to various news reports, Best Buy is closing at least two of its stores in the U.S. next month out of its over 1,000 total locations. The first confirmed closure will affect a Best Buy store located in New York City, local news site iLovetheUpperWestSide.com reported on Sept. 24. According to the outlet, a sign in the retailer's store between West 61st and 62nd Streets on Manhattan's Upper West Side has informed shoppers of the impending closure.
The other store set to be shuttered is located on the opposite side of the country. On Sept. 27, The Modesto Bee reported that a Best Buy in Stanislaus County, California, is getting axed. According to the newspaper, the Best Buy at the Crossroads shopping center in Riverbank, California, will be permanently closed next month as well.
Best Buy shoppers may be disappointed with other news surrounding these closures.
ShutterstockBoth soon-to-be shuttered Best Buy stores' last day will be Oct. 29, according to the two sources. But that's not the only bad news for either location. When asked by iLovetheUpperWestSide.com if Manhattan shoppers can expect any big sales to come as a result of the upcoming closure, a Best Buy staffer at the store didn't have a positive response. "No, they’ll just take what’s left over and send it to another store," the worker said, with the outlet noting that Best Buy currently operates five other Manhattan locations.
Riverbank, on the other hand, is losing its only Best Buy location—and shoppers in the area shouldn't hold their breath for a replacement anytime soon. "We will not be renewing the lease on our Riverbank store and have no plans for other stores in the area in the near future," Best Buy spokeswoman Olivia Bruce told The Modesto Bee in a written statement about the closure.
The electronics retailer has been struggling recently.
iStockThere have been no reports indicating that Best Buy might be planning more closures than just the two stores, but the popular electronics company has certainly had some setbacks. Best Buy revealed in late August that its sales had dropped by nearly 13 percent in the second quarter of the 2022 fiscal year, CNBC reported. And in an Aug. 30 news release, the company's chief financial officer Matt Bilunas warned that they expect comparable sales to have an even sharper decline than this in the next quarter, as shoppers continue to pull back from purchases due to inflation.
"We are clearly operating in an uneven sales environment," Best Buy CEO Corie Barry said in a statement. "As we entered the year, we expected the consumer electronics industry to be softer than last year following two years of elevated growth driven by unusually strong demand for technology products and services and fueled partly by stimulus dollars. The macro environment has been more challenged due to several factors and that has put additional pressure on our industry."
