THERE are several top retailers conducting shutdowns this month, meaning shoppers will be forced to adjust their plans.
The closings come amid changes in consumer habits and economic uncertainty this year due to tariffs, among other factors.
A few retailers are closing down some stores in September (stock image)[/caption]
Shoppers will have to fill their carts with their favorite items elsewhere (stock image)[/caption]
Brick-and-mortar retail has been having a tough time since the height of the coronavirus pandemic in 2020.
While the pandemic was a major blow, consumers, in general, continue to shop heavily online, with a total of $1.337 trillion spent by Americans through e-commerce in 2024, per Capital One Shopping.
Additionally, about 25% of the largest malls in the country are expected to close by 2027, according to data from Green Street Advisors, a real estate services firm.
While underperformance and the rise of e-commerce are contributing issues plaguing many companies, bankruptcies are a top reason for much of the closures in September.
AT HOME
At Home is at the top of the list, shuttering at least 29 stores by the end of the month in at least 12 states, per court documents.
Those states include California, Florida, Illinois, Massachusetts, Minnesota, Montana, New Jersey, New York, Pennsylvania, Virginia, Washington, and Wisconsin.
There are also ongoing sales at the locations up to 50% off.
The Dallas-based home goods company operated about 250 locations at its peak, but recently filed for Chapter 11 bankruptcy in June with a considerably smaller footprint.
It cited “broader economic and retail-specific market pressures” as contributing factors for the filing and about $2 billion in debt.
While it’s since reached an agreement with lenders to restructure with about $200 million in new funding, it’s still cutting store locations.
KROGER
Kroger is also removing two stores from its nationwide footprint of over 1,200 on September 19, per United Food & Commercial Workers Local 400 Union.
The affected locations are in Abingdon, Virginia, about a five-hour drive southwest of Richmond, and Kingsport, Tennessee, about a two-hour drive northeast of Knoxville.
Mark Federici, president of the worker’s union, blasted the move by Kroger in a statement to Newsweek, saying the closures will “not only result in fewer good, union job opportunities, it will further limit food access in rural areas where there are few if any alternatives to buy groceries.”
Except, Drew Powers, founder of Powers Financial Group, defended the supermarket brand, arguing that “Kroger is an an impossible situation,” while speaking with the publication.
US braces for ‘45,000 store closures’
Some 45,000 bricks-and-mortar stores could close in the next five years, experts have warned.
Several major retailers have announced store closures or gone out of business altogether in recent years.
In 2023, chains such as Foot Locker announced plans to close up to 400 outlets by 2026.
While, other well-known retailers like Tuesday Morning and Mitchell Gold + Bob Williams filed for bankruptcy in 2023.
Bed Bath & Beyond has closed all of its brick-and-mortar stores and is now an online-only retailer.
The most affected retailers have been clothing, consumer electronics, sporting goods, hobby, book, music, and home furnishing stores since the start of 2019.
UBS has predicted the total number of retail stores will drop by 45k from 958k to 913k.
Despite that, the report says that certain stores should thrive while others decline.
It said retailers such as Walmart, Costco, Home Depot, and Target, could be among the winners.
“They are caught in the aftermath of last year’s failed merger attempt with Albertsons, breach of contract lawsuits from Albertsons and other grocers involved in the failed merger, allegations of price fixing and deceptive practices, the sudden departure of their CEO amid an ethics investigation; all on top of pressure from online grocery retailers and a consumer shift away from brick-and-mortar shopping,” Powers explained.
“Kroger is forced to pare back and focus on only the most profitable locations under their brand name, as well as their subsidiaries like Mariano’s, Pick’n Save, and Harris Teeter.”
It was also previously announced that Kroger will continue the shutdowns of at least 60 locations in the next 18 months as it re-invests in new openings and other parts of the business.
CLAIRE’S
Additionally, Claire’s is continuing its closures after filing for bankruptcy in August.
It’s the second Chapter 11 filing for the jewelry and accessories brand since 2018, with court documents citing about $690 million in debt.
As a result 291 locations are closing for the brand, including 235 Claire’s and 56 Icing stores.
This month, at least 18 Claire’s are shuttering for good as part of the mass shutdowns, with final sales having ended on September 7, per NBC affiliate KING5.
For a brief moment, the future was looking extremely grim for Claire’s if it didn’t find a buyer.
It would’ve been forced to close its over 1,500 US and Canada locations as a result, but it was saved in August by private equity firm Ames Watson, per Fast Company.
RITE AID
Lastly, Rite Aid is also continuing its mass closures after its most recent bankruptcy filing in May.
The pharmacy chain reported more than $1 billion in debt, and is selling off all of its remaining assets and about 1,200 stores.
In September, at least 27 of those Rite Aid locations are continuing to close on various days throughout the month, per PennLive.
While exact dates for the September shutdowns across all of the four may vary, consumers can expect them all to have the doors closed on affected locations by the time October comes around.
Planning ahead in the meantime could save consumers time and money.
A beloved grocery chain is also shuttering at least 10 stores by a November 7 deadline.
Petco is even axing up to 30 locations as the CEO bets on two crucial fixes to improve sales.
