The retail landscape is changing—fast. Major brands like Hooters, Joann Fabrics, Big Lots, and even Walgreens are closing stores or filing for bankruptcy. The headlines feel shocking, but they also hold powerful lessons for entrepreneurs navigating today’s ever-evolving business world.
So, why are so many well-known names struggling? And how can you use this shift to your advantage as a business owner?
Let’s dive into what’s really going on and what you can do to thrive—even in tough times.
A Retail Shake-Up: What the Numbers Are Saying
According to CoreSight Research, more than 7,325 U.S. stores closed in 2024 alone—the highest number since 2000. The culprits? A mix of:
- E-commerce convenience
- Inflation squeezing household budgets
- Failure to adapt to changing consumer expectations
People are increasingly opting to shop online, hunting for deals from the comfort of their homes. As one of our hosts, Brooke Boltz, shared—while she wants to support local stores, the ease and speed of Amazon often win out.
And she’s not alone.
Brands Feeling the Burn
Let’s take a closer look at some of the businesses affected:
- Joann Fabrics has filed for Chapter 11 bankruptcy for the second time in a year and is closing multiple locations.
- Hooters, once a household name, is preparing for bankruptcy and restructuring efforts.
- Big Lots is closing a portion of its stores after an ownership change—only 200 locations will remain.
- Walgreens plans to shut down 500 stores by August 2025, which caught many by surprise considering its strong pharmacy business.
- Forever 21, a mall staple, is also scaling back, despite still being popular in certain areas.
What This Means for You, the Entrepreneur
If you’re growing a business, this isn’t just economic noise—it’s a chance to learn and adjust.
Here are 5 key takeaways to help your business stay strong:
1. Adapt or Get Left Behind
Consumers want convenience and value. If your business isn’t accessible online yet, now’s the time. Your digital presence is no longer optional—it’s essential.
2. Stay In Tune with Trends
Monitor your industry regularly. Are you offering what your customers need? Could you be more competitive with pricing, promotions, or better service?
3. Avoid Overexpansion
Don’t fall into the trap of growing too quickly. Many large chains got into trouble by opening too many locations without sustainable revenue. Focus on financial stability before scaling.
4. Cut the Overhead
Brick-and-mortar stores come with high costs and liabilities. Online models, while not without challenges (shipping, logistics, etc.), can reduce your risk and increase flexibility.
5. Double Down on Customer Experience
This one is huge. Today’s consumers expect more than just a transaction—they want to feel seen and valued. A great experience builds loyalty. Just look at Publix, a brand known for top-notch customer service. Their prices might be higher than competitors, but people keep coming back because of how they’re treated.
The Big Picture
Is it the end of an era? Maybe. But it’s also the beginning of a new opportunity for savvy entrepreneurs.
Business isn’t about doing things the way they’ve always been done—it’s about adapting, learning, and innovating. So, take these changes as your cue to refine your approach and step into your next level of business success.
And remember—your small business can move with the times faster than the giants ever could.