By Jorge Vazquez
06 Oct 2023, 10:46 AM EDT
A report from Infobae shows the agony that shopping is experiencing in the United States, with around 3,200 physical stores that are closing in 2023.
Added to the bankruptcy of Bed Bath & Beyond is the reduction in stores of firms such as Rite Aid, Walgreens, Best Buy and Foot Locker, driven, in part, by the growth of e-commerce that took off during the pandemic.
An Insider account of the number of stores that have closed in the country this year, has described the situation as a retail crisis, due to the agony that the urban and suburban shopping center has experienced for several years, and that is manifesting itself as a shakeup in the industry.
One of the reasons for this decline is the rise of e-commerce, as a large number of consumers are increasingly turning to making their purchases online, significantly putting pressure on sales in physical stores.
In this panorama, Amazon has a lot to do with it, as they have gained popularity and have shaken up the retail market with their varied product offering, competitive prices and home delivery.
In addition to facing competition from online sales, retailers are having trouble maintaining profitability due to high operating costs, which include maintaining physical stores, paying salaries and managing inventory, among others.
The Wall Street Journal recently reported that the Rite Aid pharmacy chain will close up to 500 establishments, while other firms have already cut back or plan to do so, closing physical locations in the remainder of 2023, among recognized firms such as Bed Bath & Beyond, Foot Locker, Best Buy, Big Lots, Macy’s, CVS, Walgreens, Bath & Body Works, Party City and Christmas Tree Shops.
In this wave, not even Walmart has been spared, since the largest private employer in the United States has closed 22 points of sale due to lower profitability, although in its case they have been busy giving a strong boost to online commerce and retail services. home delivery.
In addition to strong competition and bankruptcies, large chains are suffering from theft, which is why brands like Rite Aid will close between 400 and 500 of their 2,100 pharmacies. While its competitors CVS and Walgreens have plans to close 300 and 150 stores, respectively in the United States and the United Kingdom.
Target recently announced the closure of 9 stores in stores located in New York, Portland, San Francisco and Seattle, also due to the increase in crimes in recent months.
In the case of Bed Bath & Beyond, it closed its 896 stores due to bankruptcy, while Christmas Tree Shop has already closed 10 stores this year and will be doing the same with another 72 that it has left in 20 states.
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