Several major retailers that struggled in 2023 have closed stores through the first quarter of 2024, and more are likely on the way.
Hundreds of Restaurant Brands International's (QSR) Burger King locations closed in 2023 after three major franchise operators filed for bankruptcy. Restaurant Brands had problems with several of its Popeyes franchisees filing bankruptcy and closing dozens of locations.
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Iconic department store chain Macy's (M) rocked the retail world on Feb. 27 when it said it would close 150 of its stores nationwide, including one of its flagship stores, a seven-story location at Union Square in San Francisco, which the company has operated since 1947.
Popular budget-friendly retailer Dollar Tree (DLTR) on March 13 said it would close nearly 1,000 of its Family Dollar and Dollar Tree locations, blaming a difficult economic forecast that is affecting its clientele, many of whom are low income. Family Dollar will shut down about 600 stores by mid-year 2024. Another 370 Family Dollar and 30 Dollar Tree locations will close when their leases expire in the next couple of years.
Walmart has closed 30 stores in 2023 and 2024
Huge retailer Walmart (WMT) has been been closing stores. It shut down about 24 stores in 2023 for a variety of reasons including the economic downturn, lower-than-expected performance and inventory shrink, better known as theft.
The retailer has closed six more stores in 2024 with four located in California, one in Maryland and one in Ohio. The closures reflect less than one percent of its 10,500 world-wide locations.
Most recently, global beauty and cosmetics brand The Body Shop on March 9 filed for Chapter 7 bankruptcy to liquidate its 50 locations in the United States. The company also filed for restructuring proceedings under the Bankruptcy and Insolvency Act in Canada and has closed half of its U.K. stores. The future of the company's remaining stores in the U.K. and Australia remain in doubt.
While many of these retail closings are related to financial distress or bankruptcies, some other closings may have more to do with a change in retail strategy.
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Shell plans to close 500 locations a year in 2024 and 2025
Giant gas station operator Shell plc has revealed its plans to divest about 500 company-owned retail sites in each year in 2024 and 2025. The oil giant is upgrading its retail network with expanded electric vehicle charging and convenience offers in response to customer needs, the company on March 14 said in its Energy Transition Strategy 2024 report.
Shell is both one of the world's largest oil companies and one of the largest gas station retailers globally. It operated more than 46,000 Shell-branded retail locations, including 12,500 convenience stores worldwide at the end of 2022, according to its 2022 annual report. The company also owned about 139,000 electric charge points, including over 28,000 charge points at Shell forecourts, on-street locations, mobility hubs and destinations like supermarkets.
The company, however, did not indicate in its Energy Transition Strategy Report which retail sites and which countries would be affected by the divesting of properties. No reason was given for its plans to dispose of the 1,000 locations.
Shell said in the report between now and 2030, it is focusing on three areas where it has the potential to positively impact the energy transition by reducing the cost for its customers
- Electric vehicle charging
- Biofuels
- Integrated power.
The company is seeking to increase the number of public charge points it operates to about 200,000 by 2030.
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