From Bed Bath & Beyond to Best Buy: What the Closure of Major Retail Chains Means for Consumers

The retail industry is facing a grim reality as over 50,000 stores in the United States are on the chopping block. Several retail chains that have been the pillars of American retail for decades are at risk of disappearing entirely in the coming weeks and months. From Big Lots to Express, many well-known retail chains are on the brink of closing their doors for good. In this blog post, we will take a closer look at 13 of the biggest chains that may not survive the ongoing retail apocalypse and how it affects you.

The closure of retail chains can have a significant impact on consumers’ personal finances.

With many stores going out of business, consumers may find it harder to find the products they need at affordable prices. This could lead to increased expenses as consumers are forced to shop at more expensive retailers or pay higher prices for online purchases.

In addition, the closure of these retail chains could also lead to a decline in consumer credit scores. Many consumers rely on credit cards and other debt products to make purchases, and the closure of stores could lead to a decline in credit utilization rates. This, in turn, could lead to a decline in credit scores, making it harder for consumers to access debt products such as debt consolidation loans.

Debt consolidation loans are a popular option for consumers looking to simplify their finances and reduce their overall debt burden. These loans allow consumers to combine multiple debts into a single loan with a lower interest rate and a lower monthly payment. This can make it easier for consumers to manage their finances and pay off their debts.

However, the closure of retail chains could make it harder for consumers to access debt consolidation loans. With many stores going out of business, lenders may be more cautious about extending credit to consumers. This could make it harder for consumers to qualify for debt consolidation loans or other debt products.

In addition, the closure of retail chains could also lead to a decline in property values, making it harder for homeowners to access home equity loans or home equity lines of credit (HELOCs). Home equity loans and HELOCs are secured loans that allow homeowners to borrow against the equity in their homes. However, if property values decline due to the closure of retail chains, homeowners may find it harder to qualify for these loans.

The closure of retail chains is also likely to lead to an increase in bankruptcies and other forms of debt relief. With many consumers struggling to make ends meet, more people may turn to bankruptcy or other forms of debt relief to get a fresh start. This, in turn, could lead to a decline in credit scores and make it harder for consumers to access debt products in the future.

The closure of retail chains can have a significant impact on consumers’ personal finances, including their ability to obtain debt consolidation loans and personal loans.

When major retail chains go out of business, many consumers are left with a significant amount of debt, especially if they have made purchases with credit cards. As a result, many people turn to debt consolidation loans to help manage their finances. With the closure of retail chains, consumers may have fewer options for obtaining these loans, making it more challenging to consolidate their debt.

When seeking a debt consolidation loan, consumers should be aware of several key factors, including their credit score, credit history, loan origination fees, and monthly payments. The annual percentage rate (APR) and origination fee can vary, depending on the lender and the borrower’s creditworthiness. Lenders may also require a minimum credit score or perform a soft credit inquiry to determine the borrower’s eligibility.

In contrast, a hard credit inquiry may be required to approve the loan application. To obtain the best debt consolidation loans, consumers should research different lenders’ offers, compare loan origination fees, and review their monthly payments and loan amounts. By consolidating their existing debt, consumers can save money on their loan payments, improve their debt to income ratio, and potentially improve their credit report and score.

16 Major Retail Chains at Risk of Disappearing

Big Lots

Big Lots is a retailer that offers a wide variety of products across several merchandising categories such as furniture, consumer products, soft home categories, and more. Despite its massive product range, the chain is suffering, with sales down 10 percent year over year. Even as consumers are eager for deals and low prices, Big Lots operates 1,425 stores in 48 states, but hundreds of locations have become unprofitable and may close soon.

This month, the company CFO, Jonathan Ramsden, announced that Big Lots has plans to close all of its doors in urban centers before the end of 2023. Retail experts are concerned about the overall financial health of the retailer, which experienced a large cash burn in 2022 and is not expected to recover this year.

The company lost its largest furniture vendor in November, on top of that, for the fiscal year ending January 31st, the company reported a net loss of $210.7 million or $7.30 per share. All of this indicates that more turbulence is coming for the chain, and Big Lots’ loyal customers will probably have to say goodbye to their favorite stores in the coming months.

Rite Aid

In the spring of 2022, the pharmacy chain reported the closure of 145 stores, and more locations are about to go dark in 2023. Forbes recently reported that the company said over a hundred stores are underperforming for several quarters now, without providing a specific number.

Rite Aid executives said the closings were meant to significantly reduce costs. The retailer, which reported a quarterly loss of more than $67 million on December 21, 2022, is now bracing for even greater losses for its fiscal 2023 than it projected three months ago.

The chain is slowly fading away from the U.S. retail landscape, and before people notice it, it may be gone completely.

Bed Bath and Beyond

Bed Bath and Beyond, known for its ubiquitous 20% off coupons, recently filed for Chapter 11 bankruptcy. The company has struggled for years due to a series of bad decisions by its management. Now, it plans to close all 360 Bed Bath and Beyond locations and 120 bye-bye baby stores by June 30th.

Economic uncertainty has played a role in its downfall, but mismanagement has been a significant factor. Investors who bought the company’s stock during its trendy phase should consider selling their shares, as bankruptcy proceedings prioritize debt holders over shareholders.

Party City

Party City, a retailer specializing in party goods and decorations, suffered financially due to soaring inflation and shifts in consumer spending during the pandemic. In 2023, the company filed for bankruptcy and announced the closure of all its stores. Reliant on in-person party celebrations, Party City struggled when social gatherings were disrupted. The closure of all stores is a clear indication that Party City could not survive the macroeconomic challenges it faced.

Dollar General

Dollar General, the discount retailer, has been facing the closure of several locations in California, Colorado, Indiana, and Ohio. However, the chain’s troubles go beyond individual store closures. The U.S. Department of Labor’s occupational safety and health administration has found Dollar General to be exposing workers to unsafe conditions. The company has faced fines exceeding $15 million and numerous citations for workplace safety violations. With additional legal challenges looming, Dollar General’s future looks uncertain.

CVS

CVS Health is a pharmacy and healthcare company that operates over 9,900 stores across the United States. The company has been hit hard by the ongoing COVID-19 pandemic, as many consumers have shifted to online shopping and telemedicine services. In addition, CVS has been dealing with rising costs, including higher wages and supply chain disruptions. As a result, the company has announced plans to close around 900 of its underperforming stores over the next three years.

Nordstrom

Nordstrom is a high-end department store that has been around since 1901. However, it has not been immune to the retail apocalypse that has hit the industry. The company just shut down its operations in Canada, and it is closing dozens of locations in the United States after sales collapsed by 40% in 2022. Analysts predict the retailer will be under pressure in 2023, especially as another economic downturn begins, and its profit margins are further squeezed by consumer recession.

Moody’s Analytics has placed Nordstrom on its bankruptcy watch list as the retailer apocalypse continues to hammer department stores the hardest. With even fewer locations in the market, its future looks cloudy, and the odds are facing a financial breakdown arising.

Best Buy

Best Buy has been hanging by a thread over the past few years and quietly closing more stores each year. Since 2019, over 80 Best Buy locations have disappeared from sight, and earlier this year, the chain announced plans to close a higher number of stores. The company did not reveal the total number of closings, but media reports suggest that at least 600 locations are in financial distress, which is over half of the retailer’s footprint in the U.S.

In an Abyss Journals article, Best Buy CEO Corey Barry predicted that supply chain issues, rising labor costs, and continued economic challenges could lead to a major manufacturing slowdown that could ripple through the market. She said Best Buy executives sent the expected business to continue to taper. Right now, they’re putting their best strategies forward in an attempt to keep the business alive, or at least part of it.

The Children’s Place

The Children’s Place is a retailer that specializes in children’s apparel. The company plans to shrink its brick-and-mortar footprint by half this year, with 265 stores set to close. The apparel retailer has already permanently closed 586 stores, including 315 during the onset of the pandemic. The Children’s Place ended 2022 with 613 stores, which is an 8.3% decrease from the prior year. Right now, only 530 are still open.

In March, The Children’s Place reported $456.1 million in net sales for the three months ending January 28, 2023, which is a 10.2% decrease from the same period a year ago. It cited the impact of permanent store closures, a pullback in consumer spending amid inflation concerns, and a weak holiday season in 2022 as factors for the decline. With even fewer locations in the market, its future looks cloudy, and the odds are facing a financial

Corner Bakery

Corner Bakery is a fast-casual cafe chain offering soups, sandwiches, salads, and pasta entrees along with various breakfast and bakery items like cinnamon rolls, muffins, bagels, and yogurt parfait. If that sounds like a broad menu that doesn’t really have any defining specialties, well, that may be part of the problem. The chain finished 2022 with 161 locations but appears to have far fewer now, at about 125.

In 2021, over 200 locations were being operated all around the U.S. The company has a debt load of $33.8 million, a legacy of debt taken out in 2017 that investment firm Panera Group inherited when it bought Corner Bakery from Rock Capital in 2020.

The bakery chain has been reporting falling revenue as demand sinks. In February, it sought Chapter 11 protection as it seeks to find another buyer to pay its debt and take control of the company. But considering its poor conditions, the chances that it survives this bankruptcy are very limited

Mattress Firm

Mattress Firm is a retailer that specializes in mattresses. Previously, Mattress Firm emerged from Chapter 11 in 2018 with a dramatically reduced footprint. Now that bedding demand is in decline as consumers cut spending, the company is at serious risk of going out of business.

According to Bloomberg, Santa Simon’s, a major mattress manufacturer, is planning to file for bankruptcy in the next few months, which will likely leave Mattress Firm without a major supplier. In March, Retail Dive listed Steinhoff as having a 53% chance of filing for bankruptcy by the second quarter of 2023. The decay can occur even faster than predicted if consumer demand continues to decline at a 7% rate for another couple of months.

Victoria’s Secret

Victoria’s Secret is another retailer that is facing significant challenges. The brand is struggling to keep up with the changing times and has been slow to adapt to the rise of body positivity and inclusivity. The lingerie chain has been criticized for its lack of diversity and for promoting unrealistic beauty standards.

Victoria’s Secret has been closing stores across the US in recent years as sales declined. The company announced plans to close about 250 stores in 2020, with many more closures expected in the coming years. The brand’s reputation has also been damaged by reports of a toxic work culture and allegations of sexual harassment.

Victoria’s Secret is now attempting to rebrand itself and has hired new leadership to help turn the company around. However, it remains to be seen whether the brand can regain its former glory in an increasingly competitive retail landscape.

Sears

Sears was once one of the most iconic retailers in the US, but the company has been struggling for years. The department store chain has been hit hard by declining sales, high debt levels, and increasing competition from online retailers like Amazon.

Sears filed for bankruptcy in 2018 and has been in a slow decline ever since. The company has closed hundreds of stores across the US and has been forced to sell off many of its assets to pay down its debts.

Despite efforts to restructure and revitalize the brand, Sears continues to struggle. The company’s future remains uncertain, and it is possible that the chain could disappear entirely in the coming years.

J.C. Penney

J.C. Penney is another department store chain that is struggling to survive in the current retail landscape. The company has been hit hard by declining sales and increasing competition from online retailers like Amazon.

J.C. Penney filed for bankruptcy in 2020 and closed hundreds of stores across the US. The company was eventually purchased by mall operator Simon Property Group and apparel licensing company Authentic Brands Group. The new owners of J.C. Penney are attempting to rebrand the company and turn it around. However, it remains to be seen whether they will be successful in reviving the struggling retailer.

Gap

Gap is a clothing retailer that has been struggling in recent years. The company has been hit hard by declining sales and increasing competition from fast fashion retailers like Zara and H&M.

Gap has been closing stores across the US in an attempt to cut costs and improve profitability. The company has also been attempting to revamp its product offerings and brand image in an effort to appeal to younger consumers.

Despite these efforts, Gap continues to struggle, and its future remains uncertain. The company will need to make significant changes to its business model and brand image if it hopes to survive in the long term.

Forever 21

Forever 21 is a fast-fashion retailer that has been struggling in recent years. The company filed for bankruptcy in 2019 and has been closing stores across the US ever since.

Forever 21 was hit hard by declining sales and increasing competition from online retailers like Amazon. The company also faced criticism for its fast-fashion model, which is seen as unsustainable and damaging to the environment. The future of Forever 21 remains uncertain, but the company is attempting to rebrand itself and focus on sustainability. However, it remains to be seen whether these efforts will be enough to save the struggling retailer.

The Ongoing Retail Apocalypse

The ongoing retail apocalypse has been devastating for the retail industry, with many well-known chains struggling to stay afloat. The COVID-19 pandemic has only made things worse, with many stores forced to close their doors for extended periods. While some retailers have managed to pivot to e-commerce and curbside pickup to stay relevant, many others have not been so lucky.

The rise of e-commerce giants like Amazon has also played a significant role in the downfall of brick-and-mortar retailers. With Amazon’s quick delivery times and vast product selection, many consumers have turned to the online giant for all their shopping needs. Traditional retailers have struggled to keep up with the changing times, and many have fallen by the wayside.

The Impact on the Economy

The closure of these retail chains will have a significant impact on the economy, from the loss of jobs to the ripple effects on other industries. Retail is a massive sector in the United States, and the ongoing retail apocalypse is causing widespread economic damage.

The closure of major retail chains has significant implications for consumers. With the loss of these brick and mortar stores, consumers may find it harder to access the retail outlets they once relied on for household items, groceries, home improvement goods, drug store necessities, and sporting goods.

The closure of industry leaders in retail sales, such as the chains located primarily in malls or shopping centers, could also have a ripple effect on the broader economy. Consumers may see higher prices as supply chains adjust to the shifting retail landscape. In addition, the loss of jobs associated with these closures could have a significant impact on local communities. It remains to be seen how consumers will adapt to the changing retail landscape and what impact it will have on their shopping habits and overall consumer behavior.

With so many stores closing their doors, there will be a significant loss of jobs across the country. From retail associates to supply chain workers, the impact of these closures will be felt across the entire industry. The loss of jobs will have a ripple effect on other industries, as well, from restaurants to transportation and logistics.

The closure of these retail chains will also have a significant impact on local economies. Retail stores are often the anchor tenants of shopping centers and malls, and their closure could cause a domino effect. Other stores in the area may see a decline in foot traffic, which could ultimately lead to their closure as well. The impact of these closures will be felt by everyone in the community, from small business owners to consumers.

Controversy

The closure of these retail chains is controversial for several reasons. First and foremost, it’s a sign of the changing times. Traditional retailers are struggling to keep up with the changing consumer preferences, and the rise of e-commerce has made it difficult for them to stay relevant. The closure of these stores is a clear indication that the retail industry is in the midst of a massive transformation.

Another controversial aspect of these closures is the impact on jobs. With so many retail chains closing their doors, there will be a significant loss of jobs across the country. This will have a devastating impact on workers and their families, and it’s unclear how these workers will be able to find new employment in a struggling economy.

Finally, the closure of these retail chains is controversial because of the impact on local communities. Retail stores are often the anchor tenants of shopping centers and malls, and their closure could have a domino effect on other businesses in the area. The closure of these stores could ultimately lead to the decline of entire communities, which is a significant concern for many people.

Conclusion

The closure of these retail chains is a clear indication that the retail industry is in the midst of a massive transformation. Traditional retailers are struggling to keep up with the changing consumer preferences, and the rise of e-commerce has made it difficult for them to stay relevant. The closure of these stores is a significant blow to the economy, with a significant loss of jobs and a ripple effect on other industries.

While it’s unclear what the future holds for the retail industry, it’s clear that the changes brought about by the ongoing retail apocalypse are here to stay. Retailers that want to survive will need to adapt to the changing times and find new ways to connect with customers. The rise of e-commerce has made it easier than ever for consumers to shop from the comfort of their own homes, and retailers will need to find ways to compete in this new landscape.

At the same time, it’s important to remember that the closure of these retail chains is more than just a business issue. It’s a human issue, with real-world consequences for workers, families, and communities. The loss of jobs and the decline of local economies is a significant concern, and it’s up to all of us to work together to find solutions.

The ongoing retail apocalypse is a reminder that change is constant and inevitable. The businesses that succeed will be those that are able to adapt and evolve to meet the changing needs of consumers. While the closure of these retail chains is undoubtedly controversial, it’s also an opportunity for new businesses to emerge and take their place in the retail landscape of the future. Only time will tell what the future holds for the retail industry, but one thing is for sure: the changes are just beginning.