Top Retail Brands Expected to Shut Down Stores in 2023
Several prominent retail brands are planning to close their physical stores in 2023 due to declining foot traffic and financial issues. From fashion to groceries, major chains like Morphe, Party City, Sears, and Macy’s are adjusting their strategies, focusing more on online platforms. Customers interested in visiting these stores should act quickly to take advantage of final deals. The retail landscape is evolving, and staying updated will help consumers make informed shopping decisions before these brands consolidate their online presence and close physical locations.
Leading Retailers Preparing to Close Physical Outlets in 2023
With the increasing popularity of online shopping, many well-known brands are shifting away from brick-and-mortar stores, opting instead to focus on e-commerce. While some consumers still prefer shopping in physical stores, numerous major brands across the nation plan to close several or all of their retail locations in 2023 due to declining foot traffic and financial hurdles. Shoppers may want to visit their favorite stores soon to take advantage of exclusive deals before these locations close for good.
Morphe Cosmetics
Recognized for its beauty products, Morphe operated approximately 18 stores nationwide. Recently, Formas Brands, the parent company, announced it will be closing all Morphe retail outlets and filing for bankruptcy.
This move stems from previous financial struggles, lease issues, and legal challenges. Customers can still shop online. Founded in 2008, Morphe will end its operations after 15 years. Similar to Morphe, many cosmetic retail chains are considering shifting entirely online or shutting down due to the rise of e-commerce platforms.
Party City As the largest party supplies retailer, Party City is known for decorations, costumes, tableware, and party essentials. However, declining trends in home parties have impacted sales, leading to financial strain.
Particularly, the popularity of destination celebrations has seen a boost over traditional house parties, resulting in reduced demand for Party City's offerings. This financial decline has prompted a 19% workforce reduction. Some stores are expected to close in 2023, although the company’s online operations will continue unaffected.
Kroger and Albertsons Traditional grocery stores are experiencing declines too. Kroger and Albertsons, two leading supermarket chains, are in the process of merging to stay competitive. Consequently, Kroger has already closed several stores, with more closures anticipated in 2023.
Additionally, grocery chains like Safeway and Harris Teeter—owned by Albertsons and Kroger respectively—are also planning store closures. Specific locations haven't been announced, but closures are expected as part of the ongoing restructuring.
Sears Once a household staple, Sears sold everything from clothing to appliances across numerous states. After filing for bankruptcy in 2018, the chain began closing many locations. By 2023, fewer than 20 stores remain, with most likely shutting down permanently soon. The decline was driven by economic downturns and decreased foot traffic, and Sears hasn't posted a full-year profit since 2011.
Signet Jewelers Operating brands such as Kay, Jared, Zales, and Piercing Pagoda, Signet announced the closure of around 150 stores in 2020, followed by over 100 more in 2021. Though some locations remain, with rising online jewelry shopping, many may close in 2023.
Macy’s Historically one of the biggest department store chains, Macy’s has been shrinking due to financial struggles and supply chain issues. The company has gradually closed underperforming stores, including 29 in 2020 and 38 in 2021. The remaining outlets are in their final stages of closure, with online sales continuing as usual.
