The shift to online shopping has hurt a lot
Will the last one leaving, please turn out the lights at CVS and Food Lion? The two chains led in store closures during the latter half of August, according to Supermarket News and ScrapeHero. Dollar stores, on the other hand, saw substantial expansion, with Dollar General and Dollar Tree combined opening more than 100 new locations.
The yin and yang of the openings and closings fleshes out like this:
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Aldi: 6 opened; 1 closed
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BJs: 6 opened
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Costco: 1 opened
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CVS: 4 opened; 19 closed
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Dollar General: 62 opened; 8 closed
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Dollar Tree: 44 opened; 5 closed
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Family Dollar: 1 opened; 2 closed
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Food Lion: 9 closed
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HEB: 1 opened
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Kroger: 1 closed
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Lidl: 1 opened
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Publix: 3 opened
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Rite Aid: 1 closed
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Smiths: 1 closed
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Target: 4 opened
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Walgreens: 2 opened
Much of this was regional. Dollar Generals openings focused primarily on the Midwest, South, Southwest, and Northeast. Dollar Trees new stores were mostly in California, and four of its five closings were in the Northeast. And, Food Lion shut down nine stores across Southern states, including Virginia, North Carolina, South Carolina, and Georgia.
Not the beginning and definitely not the end
The last 12 months has seen its share of store closings Walgreens, Target, Rite Aid, Big Lots, and others. But, its not just one single reason, but rather a combination of factors impacting the retail industry.
Theres a decided shift among consumers toward online shopping which, in turn, reduces foot traffic. There have been supply chain disruptions which have increased operational costs and left shelves bare. Then, theres theft and security Issues which caused the Target closings.
Wheres this going? All told, the estimated number of store closures across the U.S. is expected to reach more than 1,600 by the end of 2024, so stay tuned.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-09-11 18:12:40
