Store Closures Surge In FL: See List Of Retailers Shutting Doors
Retail data provider CoreSight noted a 24 percent increase in store closures over last year. Here's what to know in Florida. Retail data provider CoreSight has reported a 24 percent increase in store closures over the previous year, largely due to a shift in consumer shopping to online outlets, inflation, and bankruptcies. Retail data provider also noted that 30 stores are closing some or all locations, including those in Florida. The closures are mostly related to bankruptcies of chains like Rite Aid and Rue21. Family Dollar led the retail reshuffling by closing 620 stores, including at least one in Florida, and other retailers like Walmart Health Centers and Express have also closed. Consumer spending is solid, rising 0.2 percent in April, but confidence may be declining, according to the University of Michigan's Surveys of Consumer sentiment. Jeffrey Roach, LPL Financial’s chief economist, warned that uncertainty about inflation could suppress consumer spending in the coming months.
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FLORIDA — Some 3,200 brick-and-mortar stores, including many in Florida, have closed so far this year, and more are expected to close through the remainder of the year, according to a new analysis.
Retail data provider CoreSight noted a 24 percent increase in store closures over last year as the retail industry adjusts to a shift in consumer shopping to online outlets, inflation and bankruptcies. The 30 stores closing some or all of their locations range from anchor stores such as Macy’s and other mall apparel stores to drugstores and discount stores selling items for around $1.
“A lot of this year's closures are related to bankruptcies of chains that have been in trouble for a while, like Rite Aid and Rue21,” Neil Saunders, managing director of GlobalData, told CBS MoneyWatch. “We’re also seeing several retailers, like Family Dollar, take action to weed out underperforming locations.” Family Dollar led the retail reshuffling by closing 620 stores, including at least one in Florida.
Other stores that have closed in Florida include 23 Walmart Health Centers and five Express stores. According to CoreSight, here are retail closures so far in 2024:
Consumer spending remains solid, rising 0.2 percent in April, according to the latest available government data. But confidence may be declining, according to the University of Michigan’s Surveys of Consumer sentiment. The consumer confidence dropped to 69.1 in May, down from 77.2 in April. Jeffrey Roach, LPL Financial’s chief economist, told CBS news that “uncertainty about the inflation path could suppress consumer spending in the coming months.” Also, Roach said in an earlier interview with CBS, consumers have mostly spent any federal pandemic stimulus money that may have temporarily bolstered their bank accounts. With those windfalls exhausted, consumers are likely to cut back on discretionary spending, he said. Some retailers made strategic errors, Saunders told CBS. For example, Express, an apparel store specializing in workplace attire, “made too little effort to adapt” when they began working from home during the pandemic, Saunders said in a research note. Express said it would close 100 of its 500 stores as part of its bankruptcy restructuring.
UBS retail analysts led by Michael Lasser said in an April report by Retail Dive there’s too much retail space in the country, and third-party outlets such as Shein and Temu are expected to drive further online retail penetration, which is expected to increase to 26 percent from 21 percent. Especially vulnerable are apparel and accessories, consumer electronics home furnishing retailers, according to the UBS analysts. The outlook isn’t entirely bleak for retailers. Although department stores are likely to continue to lose market share, off-price conglomerates such as TJK, whose banners include T.J. Maxx, could grab billions in sales from the closure of 150 underperforming Macy’s stores, according to analysts. The 100-page UBS analysis said brick-and-mortar stores are “an important part of the overall retail ecosystem.” “In the simplest terms, stores serve as hubs of fulfillment and support distribution logistics,” UBS said. “This is increasingly more important as consumers are becoming more demanding for convenience or immediate deliveries.” Walmart, Target, Costco, Home Depot and other large retailers that have invested in customer experiences across all channels are best positioned to survive “a biological evolution similar to survival of the fittest,” UBS said in the analysis.