Store closings hit highest level in years amid higher prices, more budget-conscious consumers

(CNN) – Store closings have hit their highest level in years.

Among them, discount retailer Big Lots said it plans to close more than 350 stores nationwide.

Family Dollar also announced 677 store closings this year.

Walgreens is closing 259 locations, and Denny’s is closing 150 of its lower-performing restaurants.

Coresight Research says major retailers announced more than 6,100 store closures so far this year — already outpacing last year’s total of more than 5,500.

Chains are on track to close the highest number of stores in 2024 than any year since 2020 when the pandemic decimated the industry.

Stores that were struggling before the pandemic are once again faltering as high interest rates inflate debt payments and price hikes weigh on many consumers.

Smaller players are being crushed by competition from bigger companies such as Amazon, Walmart, Costco, and Home Depot which can offer goods at lower prices.

Additionally, years of overexpanding and failed strategies are coming back to bite some chains. Retailers big and small have expanded much more than they probably should have.

Inflation is getting back to normal, but prices are still up around 20% from 2020.