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Retail Apocalypse: 15,000 Stores Closing Amid Bankruptcy Surge

2/8/2025

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Summary

Retailers Face Closures

Coresight Research forecasts 15,000 store closures in 2025, up from 7,325 in 2024.
Retailers like Big Lots struggle with high inflation, online shopping trends, and competition from Amazon and Walmart.
Retail bankruptcies doubled in 2024, with Big Lots among those filing.
Despite closures, over 1,000 new stores are set to open in 2025, focusing on value retailers.

Summary

Big Lots Bankruptcy

Big Lots filed for bankruptcy on September 9, 2024, due to inflation and high interest rates.
Variety Wholesalers aims to acquire 200-400 Big Lots stores, keeping 200 open across 14 states.
Gordon Brothers oversees the bankruptcy process and has pinpointed stores for potential acquisition.
Big Lots has reduced its operations to 872 stores, down from 1,392 earlier in 2024.

History

Historical Context

The retail landscape has faced upheaval since the 2008 financial crisis, which triggered a wave of bankruptcies and store closures. Similar to past recessions, like the dot-com bust in the early 2000s, economic pressures from inflation and competition have accelerated this trend, reshaping consumer shopping habits.

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Retailers Face Closures

Coresight Research forecasts 15,000 store closures in 2025, up from 7,325 in 2024.
Retailers like Big Lots struggle with high inflation, online shopping trends, and competition from Amazon and Walmart.
Retail bankruptcies doubled in 2024, with Big Lots among those filing.
Despite closures, over 1,000 new stores are set to open in 2025, focusing on value retailers.

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