MORE brick-and-mortar stores are set to close amid industry pressure.
A wave of closures will affect numerous retail chains in May.
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Many retail store closures are set to hit the US in May, affecting a wide range of companies.
Affected brands range from department stores to pharmacies.
The ongoing restructuring reflects broader trends in how Americans shop, as online retail gains traction and traditional chains reassess their brick-and-mortar strategies.
Retailers including Saks Fifth Avenue, JCPenney, Rite Aid, and Family Dollar are among those scaling back their presence.
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These decisions come amid corporate restructuring efforts and heightening financial pressures.
Over 2,500 store closures are expected nationwide this year, according to The Mirror.
The closures don’t just impact shoppers, either.
Employees and local economies will be affected as jobs and businesses disappear.
Foot traffic to neighboring businesses often drops, and jobs are lost as stores shut their doors in a retail domino effect.
Saks Fifth Avenue will permanently close its Union Square store in San Francisco in early May after the lease expires.
The company emphasized that the Union Square closure is part of a larger realignment.
A spokesperson confirmed the closure to ABC7 News, citing “shifting consumer patterns and evolving real estate plans.”
Additional store closures are expected in May, adding to the hundreds already shut down nationwide.
JCPenney is also planning to close seven stores by May 25.
Why are JCPenney stores closing?
JCPenney has hit the headlines after it emerged that the chain will close a number of stores within the coming months.
The once-booming department store chain has faced declining sales and has struggled to reel in new customers.
The emergence of online shopping hit brick-and-mortar stores and shopping malls.
When the Covid-19 pandemic occurred, retailers, including JCPenney were dealt another blow which proved fatal for many.
The retailer’s financial struggles came to a head in May 2020 when it filed for bankruptcy protection with around $4 million in debt.
The subsequent restructuring saw a slew of closures as the retailer embarked on a new strategy for sustainable growth.
175 stores shuttered nationwide between 2020 and 2021.
However, even after being bought out, the company is continuing to struggle with sales especially as consumers tighten their belts due to the high cost of living and inflation.
JCPenney’s latest Q4 net sales dropped to $2.3 billion, a 5.9% year-over-year decline while net income fell by 8.9% to $41 million.
The locations include stores in California, Colorado, Idaho, Kansas, New Hampshire, North Carolina, and West Virginia.
Pharmacy chain Rite Aid continues its downsizing as it navigates Chapter 11 bankruptcy proceedings.
Family Dollar is also continuing to shutter stores following earlier bankruptcy filings and internal restructuring.
Industry watchers say this wave of “retail apocalypse” may not be the last.
Analysts anticipate continued consolidation into 2025 as companies adapt to post-pandemic realities and cost pressures.
As more stores go dark, consumers may find themselves with fewer options for clothing, pharmaceuticals, and household essentials.