From T.J. Maxx to Walgreens: The Major Stores You'll See Less of in 2024
These are the retailers set to close their doors in the coming year.
With the continued rise of online shopping, along with record inflation, it's no wonder that retailers are suffering steep financial losses. Unfortunately, this means that companies all across the U.S. are downsizing brick-and-mortar storefronts to make ends meet. In 2023, we've seen closures from big-name retailers and local shops alike—and the shutdowns don't appear to be easing up anytime soon. From T.J. Maxx and Marshalls to CVS and Walgreens, read on to see which stores you'll be seeing less of in 2024.
After closing more than 50 locations already in 2023, Big Lots recently announced that it will be shuttering stores in New York, North Carolina, and Illinois by early 2024, according to The U.S. Sun. The news comes shortly after the appointment of a new leadership team and the beginning of a "multi-year strategic plan."
"As we continue to make progress on the five key actions supporting our multi-year strategic plan, which includes improving store relevance and increasing our assortment of extreme bargains, it was important to us to find leaders for these positions that have extensive experience and proven track records in the world of off-price retail," Bruce Thorn, Big Lots president and CEO, said in a Nov. 30 press release.
Ever since Oct. 15, when Rite Aid filed for Chapter 11 bankruptcy, the drugstore chain has been growing its list of stores set to close, according to CNN.
"It was always a matter of when, not if, Rite Aid would file for bankruptcy," Neil Saunders, managing director of consulting company GlobalData, said in a note to investors, per CNN. "The company has been deep in the red for the past six years."
The company was and is facing a large decrease in sales, $3.3 billion in debt, and a major lawsuit alleging they had "filled hundreds of thousands of prescriptions that did not meet legal requirements" for highly addictive painkillers, according to a press release from the U.S. Department of Justice (DOJ).
Currently, 154 stores across 15 states are set to close by the beginning of 2024; some have already shut their doors. California and Pennsylvania are being hit the hardest, losing 31 and 39 locations, respectively. New Jersey, New York, Michigan, Ohio, Washington, and Delaware have also been shutting down stores and will continue to do so in the new year.
As Reuters reported, Dollar Tree Inc. (the parent company of Dollar Tree and Family Dollar) missed its 2023 third-quarter estimates and trimmed its annual sales forecast. The company now expects its fiscal 2023 consolidated net sales to fall between $30.5 billion and $30.7 billion, despite previously estimating that it would reach between $30.6 billion and $30.9 billion.
Because of this shortfall, Dollar Tree Inc. has been reviewing Family Dollar's performance. Though the store finished out the quarter with a 2 percent increase in same-store net sales, it failed to meet company expectations of a 4.07 increase, Reuters shared. It also fell far behind Dollar Tree's 5.4 percent increase in same-store sales for the same quarter.
In a Nov. 29 earnings call, Dollar Tree, Inc. CEO Rick Dreiling said the company plans to "address underperforming stores that are not aligned with our transformative vision for the company."
"This will involve, among other things, identifying stores as candidates for closure, re-bannering, or relocation with the goal of assuring that each asset under the Family Dollar banner is delivering its full value for our shareholders on a sustainable basis," he added.
While nothing is finalized yet, some Family Dollar stores will likely be rebranded or shut down as the new year rolls around.
Back in Nov. 2021, CVS Health shared plans for an extensive operations overhaul that included a large number of store closures. Their goal was to "reduce store density in certain locations" by closing around 300 stores per year for the next three years—resulting in roughly 900 total closures by 2024.
The closures officially began in 2022, and haven't shown signs of stopping. Since February of this year alone, CVS lost locations in Iowa, Virginia, Florida, and Missouri. According to Scrapehero, CVS currently has 9,437 U.S. locations; this is down from 9,600 in March.
"Maintaining access to pharmacy services in the communities we serve is an important factor we consider when making store closure decisions," CVS said in a statement to the Tallahassee Democrat. "Other factors include local market dynamics, population shifts, a community's store density, and ensuring there are other geographic access points to meet the needs of the community."
It's yet to be seen where locations will be lost in 2024, but to keep with its goals, the company is likely to continue its aggressive closing strategy.
In June, Walgreens Boots Alliance (the parent company of Walgreens) reported its third-quarter earnings for the 2023 fiscal year. According to the report, the retailer's sales increased 8.6 percent from the year prior—but Walgreens still fell short of its estimates.
Therefore, in a June earnings call with investors, Walgreens CFO James Kehoe revealed that the company is planning to close 450 locations. "We will continue to optimize our locations and opening hours, and expect to close an additional 300 locations in the U.K. and 150 locations in the U.S.," he said. There are currently around 9,000 Walgreens stores in the U.S., per CNN.
Walgreens hasn't explicitly said which stores will be affected or when the closures will begin. However, a spokesperson for the company told CNN that the retailer plans to close the 150 U.S. locations by Aug. 31, 2024, the end of its next fiscal year.
Staples and Office Depot
Though it's unclear if Staples will continue down this path, you can expect to see even fewer Office Depot locations in 2024. "It is anticipated that additional retail stores will be closed in 2023 and 2024, however, it is generally understood that closures will approximate the store's lease termination date," the company wrote in a March 2023 filing.
T.J. Maxx and Marshalls
T.J. Maxx and Marshalls, both owned by parent company TJX, are finishing 2023 with a new onset of closures. Marshalls shut down a location in Philadelphia on Dec. 9, while T.J. Maxx closed a store in St. Paul, Minnesota, on Oct. 8. The latter is also slated to close at least three additional storefronts, two in New York and one in Illinois, in January of 2024.
"We are always assessing and reviewing our real estate strategies, and our decision to close these stores reflects that thinking," a TJX spokesperson previously told Best Life in a statement. "We have offered all our associates in these stores other jobs in nearby locations. We are grateful for the loyalty of our New York City, Chicago, and Philadelphia customers and invite them to visit our nearby stores to continue to find great values."
Bath & Body Works
Per a Feb. 23 press release, Bath & Body Works hired a team of "external advisors to assist in a top-to-bottom review of the business," helping the retailer identify ways to cut costs by $200 million in 2023 and 2024.
At the time, Bath & Body Works had approximately 1,802 storefronts in malls and independent storefronts, per a presentation given during an earnings call. But they soon announced that they were planning to close approximately 50 mall stores.
"While we're focused in the near term on optimizing the core business, we'll continue to explore longer term opportunities, such as adding new adjacent categories," such as products for men, CEO Gina Boswell said during the call, Retail Dive reported.
The company hasn't provided information on which stores are closing or when this is happening. However, Bath & Body Works also has 115 new projects planned, including revamping 25 White Barn Candle Company stores (a Bath & Body Works sister brand) and opening about 90 "new off-mall stores."
Gap and Banana Republic
In 2019, Banana Republic and the Gap, both owned by Gap Inc., had 1,216 stores across North America. Since then, however, they've been losing stores, dropping to 1,027 locations in 2020 and 912 in 2022. That number will be down to about 866 by the end of 2023, according to a slideshow prepared for an earnings call on March 9.
"We remain on track to achieve our goal of closing 350 non-strategic Gap and Banana Republic stores in North America by the end of 2023 and ended fiscal [year] 2022 having achieved close to 90 percent of that goal," said Katrina O'Connell, chief financial officer for Gap Inc., during the earnings call.