Last Call: These Chain Stores Are Closing Locations in 2024

Updated: Feb 7, 2024By Audrey KyanovaBusiness

This article originally appeared on Investing.com. It has been republished here with permission.

Last Call: These Chain Stores Are Closing Locations in 2022 ©nbcnews.com ©/Getty Images

Every business owner knows that everything can change on a dime, regardless of how big the brand is. Over the past few years, online shopping and other factors have had a huge impact on how companies with brick-and-mortar stores operate. Some have flourished, while others have struggled to stay afloat. As we move into 2024, we’ve had to say goodbye to some long-standing companies that simply aren’t making the same money that they once used to.

Profitability for big names like Home Depot or Bed, Bath & Beyond is no longer an exact science, with marketing strategies and expansion plans falling flat. Some brands are choosing to file for bankruptcy in a desperate attempt to recover, while others are closing multiple locations in a bid to minimize their losses. Meanwhile, multiple companies are all out of options, with no choice but to close their doors forever.

1. CVS

Year Established: 1963
Store Closures: 300 Branches*

CVS Health has announced a strategic decision to close select pharmacies within Target stores as part of a broader initiative to shut down 300 total locations across its nationwide network in 2024. This move comes amidst a challenging healthcare landscape, reflecting CVS’s efforts to streamline operations and enhance efficiency.

CVS © BobNoah / Shutterstock.com

The closures are part of CVS’s evaluation of their physical footprint, aiming to optimize service delivery and customer access in a rapidly evolving retail and health services sector. Affected employees are expected to be offered support and potential relocation opportunities within the CVS Health family.

2. Walgreens

Year Established: 1901
Store Closures: 150 And 10% Of Its Corporate Workforce*

In 2023, Walgreens announced plans to close 150 stores and reduce its corporate workforce by 10% as part of a strategic restructuring effort. This decision reflects the company’s attempts to adapt to the evolving retail and healthcare landscape, emphasizing efficiency and cost management.

Walgreens © Jonathan Weiss / Shutterstock.com

The continuing store closures in 2024 are aimed at optimizing the chain’s footprint, improving financial performance, and focusing on core business areas. Though some closures have already been decided, others are burgeoning for this year.

3. H&M

Year Established: 1947
Store Closures: 20% Of Its Spanish Stores*

In a significant shift, Swedish fashion giant H&M announced plans on January 26, 2024, to close over a fifth of its stores in Spain, leading to the layoff of 588 employees. This move is part of a broader strategy to recalibrate its business model and cost structure amid changing consumer behaviors and the increasing shift towards online shopping.

H&M @TheStreet / Youtube.com

By downsizing its physical presence, H&M aims to enhance its efficiency and adapt to the digital retail landscape, even as it faces the difficult task of reducing its workforce. As for whether this decision will have an impact on American stores, that remains to be seen.

4. Best Buy

Year Established: 1966
Store Closures: 10-15*

Best Buy is set to continue its store consolidation efforts, planning to shutter 10 to 15 stores after having closed 24 locations last year, as revealed by CFO Matthew Bilunas during a fourth-quarter earnings call with investors. This decision aligns with the company’s strategy to optimize its retail footprint amidst evolving consumer preferences and the growing dominance of online shopping.

Best Buy @Jonathan Weiss / Shutterstock.com

By adjusting its physical presence, Best Buy aims to enhance operational efficiency and focus on digital expansion, ensuring its competitiveness in the rapidly changing retail landscape. This approach reflects a broader trend of brick-and-mortar recalibration across the industry.

5. The Gap

Year Established: 1969
Store Closures: 220*

Gap Inc., a mainstay in American shopping malls for decades, announced a significant shift away from this traditional retail setting. By early 2024, the San Francisco-based retailer plans to close 220 of its namesake Gap stores, constituting one-third of its store base. According to the retailer, this will help make the company stronger in the long run.

The Gap ©Alex Millauer / Shutterstock.com

This strategic move is reflective of broader changes in consumer shopping behaviors, including a shift towards online shopping and a declining foot traffic in malls. Gap Inc.’s decision to close these stores is part of its effort to adapt to the evolving retail landscape and focus on areas of growth.

6. Victoria’s Secret

Year Established: 1977
Store Closures: 35*

In 2024, Victoria’s Secret is set to navigate the changing retail environment by opening approximately 15 new stores in North America, primarily in off-mall locations, despite facing slow demand. Additionally, the lingerie giant plans to close 35 stores, largely as a result of consolidating co-located Victoria’s Secret and PINK stores.

Victoria's Secret ©JHVEPhoto/Shutterstock.com

This strategic shift underscores the company’s adaptation to consumer preferences for shopping outside traditional mall settings and its efforts to optimize its store portfolio. The move reflects Victoria’s Secret’s ongoing efforts to rejuvenate its brand and business model in a competitive retail landscape.

7. Foot Locker

Year Established: 1974
Store Closures: 400 By 2026*

Recently, Foot Locker announced plans to dramatically reshape its retail footprint by closing 400 stores in North America by 2026, marking a significant step in its rebranding efforts. This strategic move reflects the company’s aim to adapt to changing consumer behaviors and the evolving retail landscape.

Foot Locker © DisobeyArt / Shutterstock.com

By consolidating its store base, Foot Locker intends to focus on enhancing customer experience, investing in digital platforms, and introducing new store formats that better align with current shopping trends. This decision comes as a shock to consumers, but it is necessary to keep Foot Locker competitive.

8. Walmart

Year Established: 1962
Store Closures: 3*

Walmart is reportedly expanding its list of store closures in 2024, adding three more locations to its tally. The latest closures involve two stores in California and one in Maryland, as reported by Business Insider. This move is part of a larger trend among low-price retailers adjusting their physical presence amidst evolving market conditions and consumer preferences.

Walmart ©Sundry Photography / Shutterstock.com

Walmart’s decision to close these stores reflects ongoing efforts to optimize its retail strategy and focus on areas of growth, including e-commerce and enhanced customer service, as it continues to navigate the competitive retail landscape. It’s doubtful that such a massive company like Walmart is in economic trouble, closures aside.

9. Macy’s

Year Established: 1858
Store Closures: 150*

Macy’s, a staple in American retail, has announced a significant downsizing plan, aiming to close 150 stores nationwide within the next three years, including 50 by the end of 2024 and the rest by the end of 2026, if all goes to plan. This decision reflects the company’s strategic adjustment to the evolving retail landscape and consumer shopping habits.

Macy’s ©Drew Angerer / Getty Images.com

The closures represent a substantial reduction in Macy’s physical footprint, signaling a shift towards bolstering its online presence and optimizing its store portfolio. This move is likely to impact local economies, employees, and the retail sector at large, marking a pivotal moment in Macy’s history.

10. Banana Republic

Year Established: 1978
Store Closures: 130*

In a strategic move to streamline its operations, Gap Inc. announced on October 22, 2020 its plan to close 220 Gap and 130 Banana Republic stores by the year 2024. This decision is part of the company’s broader effort to adapt to the rapidly changing retail environment and consumer preferences, focusing more on online sales and reducing its physical store count.

Banana Republic ©JHVEPhoto / Shutterstock.com

Though saddening for consumers, by reshaping its business model, Gap Inc. aims to strengthen its brands and financial health, reflecting the shifting dynamics of global retail and the growing emphasis on digital shopping experiences

11. Carter’s

Year Established: 1865
Store Closures: 30*

In 2024, Carter’s, a leading retailer for baby and children’s apparel, appears well-positioned to navigate the challenge of rising cotton prices without significant issues. The company has outlined a strategic plan that includes opening 40 new stores while closing 30, demonstrating a net growth in its physical presence.

Additionally, Carter’s is transitioning to an updated side-by-side store format, which suggests a shift towards a more integrated and customer-friendly shopping experience. This strategic approach indicates Carter’s resilience and adaptability in facing market fluctuations, focusing on expansion and innovation to maintain its market position.

12. Denny’s

Year Established: 1953
Store Closures: 10-20*

Denny’s, the well-known diner chain, has revealed in its earnings release a forecast indicating a slowdown in its pace of restaurant closures for 2024. The company expects to see net unit closures ranging from 10 to 20 units, marking a decrease in the rate of closures compared to 2023.

This projection suggests a more stable outlook for Denny’s as it adjusts its operational strategy, possibly reflecting improvements in performance or strategic consolidations. The anticipated reduction in closures could signal a period of adjustment and potential growth for the diner chain in the near future.

13. Zales

Year Established: 1924
Store Closures: 150 (Total For Signet)*

Signet Jewelers Ltd., a dominant force in the jewelry retail industry, announced plans in mid-2023 to close 150 stores in response to economic pressures, with a significant number of these closures expected in traditional mall locations. This decision, revealed by CEO Virginia C. Drosos during a first-quarter earnings call, targets stores that fall short of the company’s productivity expectations.

Zales © Andriy Blokhin / Shutterstock.com

Operating approximately 2,800 stores under various brands including Kay Jewelers, Zales, and Jared, among others, Signet’s strategic move aims to optimize its store portfolio amid shifting consumer preferences and the challenging retail landscape, reflecting a focus on maintaining operational efficiency and financial health. The closures took place in 2023, and should continue in 2024.

14. Applebee’s

Year Established: 1980
Store Closures: 25-35*

During a February 28 earnings call, Dine Brands, the parent company of Applebee’s, announced an anticipated net closure of 25 to 35 restaurants in 2024. This forecast underscores the ongoing adjustments within the casual dining sector, as Dine Brands seeks to optimize its portfolio amidst shifting dining habits and economic challenges.

Applebee's ©George Sheldon / Shutterstock.com

These closures, although a fraction of the global network, reflect the company’s strategic efforts to focus on high-performing locations and improve overall operational efficiency. This move is indicative of broader trends affecting the restaurant industry, highlighting the need for adaptation and resilience.