Yahoo Finance When discounts mean death: These are the top 10 retail chains closing stores in 2023
In today’s digital age, online shopping has become the new norm. With constant targeted online ads and everything you could want or need at your fingertips, it likely comes as no surprise that the presence of big box stores is dwindling.
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According to global advisory and research firm Coresight, the U.S. faced 50% fewer store closures in 2022 than in 2021.
Still, despite loosened pandemic restrictions making retail shopping more enticing to the public, 2,603 retail locations closed in 2022, with apparel stores accounting for 29% of these closures.
Coresight predicts even more retailers will close their doors in 2023, as a potential recession looms. Here are 25 retail and restaurant chains that are making cuts to their brick-and-mortar locations this year so far.
Bed Bath and Beyond
Stores closing in 2023: 360
If you’re looking for reasonably priced hand towels, kitchen appliances or decorative pillows, you’re going to have to look beyond this big-box store.
Bed Bath and Beyond is in the process of closing their remaining 360 stores worldwide after filing for bankruptcy in April.
The chain has been shuttering its stores rapidly over the last year and is now officially closing all locations – leaving plenty of space for other retailers, as real estate has been scarce for large stores.
As the retailer clears out its stock in liquidation sales, now is the last chance to grab all the whisks, blankets and wall decor you need.
Gap and Banana Republic
Stores closing in 2023: 350
Gap Inc. plans to close 350 of its Gap and Banana Republic stores across North America by 2023, as the company adapts to both the increase in demand for online shopping and decrease in foot traffic to retail stores. According to the retailer, the goal behind these mass closures is to have a “smaller and healthier fleet of stores.”
The Wall Street Journal reported that Gap Inc. had a challenging financial year in 2022, with sales across all stores down by 5%.
If you’re a fan of the brand, these closures don’t have to be a total bust. While plenty of Gap and Banana Republic stores are closing, the company’s other stores — Old Navy and Athleta — are said to be opening up more locations throughout the year.
David’s Bridal
Stores closing in 2023: approximately 300
For the second time in five years, wedding and formal wear shop David’s Bridal has filed for bankruptcy. Unless the company attracts a buyer, all of their nearly 300 stores will be closing this year.
When the company first filed for bankruptcy in 2018, they emerged two months later with funding from new owners — private equity firm Oaktree Capital.
Whether it be the uptick in online shopping or changes in trending bridal styles — we’re looking at you, vintage-boutique-loving Gen Z — David’s Bridal is on the retail chain chopping block.
Tuesday Morning
Stores closing in 2023: 200
Discount home goods store Tuesday Morning is officially closing all 200 of its remaining stores. They made the announcement on their website and Facebook page in April, promoting sales of up to 30% off at select remaining locations.
Tuesday Morning first filed for bankruptcy in May 2020, during one of the peaks of the COVID-19 pandemic. At that point, the company closed 230 of its stores.
While the business may have managed to stay afloat for the past couple years, the retailer has filed for bankruptcy again and plans to shutter all remaining stores.
It’s worth noting that the company doesn’t sell products online, leaving their in-store purchases to carry the revenue during a period of declining foot traffic to big-box stores.
Buy Buy Baby
Stores closing in 2023: 120
It’s time to say “bye-bye” to Bed Bath & Beyond’s sister store, Buy Buy Baby, in 2023.
The store comes as a package deal with the closure of remaining Bed Bath & Beyond locations since parent company Bed Bath & Beyond Inc. filed for bankruptcy.
As operations wind down, the retailer is hosting major sales to clear out inventory. Prices continue to drop as they veer closer to official closing – so if you’re expecting, now is the time to take advantage.
Read more: Here's how much the average American 60-year-old holds in retirement savings — how does your nest egg compare?
Bath and Body Works
Stores closing in 2023: 50
Malls in 2023 are going to become a little less fragrant without the scented candles and lotions of Bath and Body Works filling the air.
While the company may be closing around 50 of their in-mall stores, you’re not totally out of luck if you’re a fan. In a report on their fourth-quarter performance, the retailer shared that it’s “making important strategic investments to enable future growth” amid closures.
With plans to remodel sister store White Barn and open more Bath and Body Works locations outside of malls, it’s not the end for this popular chain.
Shoe City
Stores closing in 2023: 39
While boots might be made for walkin’, you’ll have to walk on over to another store to get your next pair.
After 74 years of business, Shoe City is closing all of its stores across Maryland, Virginia, and the District of Columbia — in addition to its online platform ycmc.com — after filing for bankruptcy in March.
The announcement came after a few years of increasing financial struggle for the company. In its bankruptcy filing, the company was said to have $16 million of unsecured debt that it’s unable to pay.
Best Buy
Stores closing in 2023: 30
In March 2023, electronics store Best Buy reported that its fourth-quarter revenue was down 9.3% year over year.
In light of this, the company is closing 30 locations over the next year and revamping its brick-and-mortar store presence with remodeling and additional outlet stores.
In a press release announcing fourth-quarter results, Best Buy CEO Corie Barry said that while the industry will continue to feel the effects of the macro environment in the coming year, the company remains “incredibly excited” about its industry and future.
“[T]here are more technology products than ever in peoples’ homes, technology is increasingly a necessity in our lives, and technology innovation will continue,” Barry added.
Party City
Stores closing in 2023: 22
The party is coming to a close for 22 Party City locations. Earlier this year, the company filed for bankruptcy and announced plans to slim down their retail presence.
In a press release, Party City CEO Brad Weston cited the global supply chain crisis and “pandemic headwinds” as challenges that have impacted the industry.. As the company shutters 22 stores, the plan is to restructure its debt through bankruptcy.
“As we take this important step to put our business on stronger financial footing for the future,” Weston said, “we are as committed as ever to inspiring joy by making it easy for our customers to create unforgettable memories.”
Foot Locker
Stores closing by 2026: 400
With hopes of entering the more niche sports footwear market, Foot Locker will be closing 400 of their underperforming in-mall stores by 2026.
In the company’s most recent fourth-quarter earnings report, Foot Locker CEO Mary Dillon outlined a new long-term plan for the retailer.
"We are incredibly excited to introduce our "Lace Up" plan with a new set of strategic imperatives and financial objectives that are designed to set us up for success for the next 50 years," Dillon said.
This plan includes a widespread re-branding and the opening of hundreds of new concept stores that prioritize storytelling and presentation over the next few years. If you’re a sneaker aficionado, these highly curated stores might be enticing.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
