Retail Closures Expected To Rise 24% In 2024 As Inflation Takes Its Toll

NEW YORK, NY - APRIL 9: A closed retail store is viewed in Manhattan on April 9, 2015 in New York City. Much of New York City is witnessing a flurry of closings of beloved retail stores and restaurants due to a rapid increase in rent. It is estimated that hundreds of small businesses in New York City, one of the most sought after real estate markets in the world, are forced to close every month as rents for both light industrial and storefront space are up nearly 21 percent since 2010 according to CoStar Group. The dire situation for small businesses has led to the campaign #SaveNYC, a grassroots, crowd-sourced movement aimed to "protect and preserve the diversity and uniqueness of the urban fabric in New York City". (Photo by Spencer Platt/Getty Images)

More companies are declaring bankruptcy and shutting down operations, citing inflation and high costs. Inflation and the economy remains a top issue among all voters, according to a recent The Center Square Voters’ Voice Poll.

Retailers are closing nearly 3,200 stores this year, according to a recent analysis from CoreSight Research. The closures are a 24% increase from 2023.

U.S. drug stores and pharmacy closures led to 8 million square feet of shuttered retail space this year, the research company said. It also notes that retailers are losing inventory and customers due to retail theft. “Retail shrink” is closely connected to “organized retail crime,” it notes.

Out of the 3,200 being closed, the majority are being closed by roughly 30 retailers, with Family Dollar closing the most of over 600, according to the data, CBS News reported.