The retail industry has faced a turbulent few years, bouncing back after the initial shock of the COVID-19 pandemic only to encounter new financial pressures. In 2020, as businesses were forced to shut down or limit in-store capacity, nearly 9,700 retail stores closed, according to Coresight Research. However, the sector showed resilience in the following years, with store closures dropping to 5,230 in 2021 and even further to 1,680 in 2022, as reported by the National Retail Federation.
Despite the brief recovery, economic conditions took a turn in 2023, with rising inflation and high interest rates increasing the cost of doing business. As a result, the number of retail store closures surged to 4,070 that year. The situation worsened in 2024, with a staggering 7,325 stores shutting down—the highest since 2020. Coresight now projects that store closures could reach 15,000 by the end of 2025.
Many well-known retailers have already announced significant shutdowns for 2025. Party City, which filed for bankruptcy in late 2024, plans to close all of its locations by the end of February, attempting to offload 700 store leases across 45 states. Similarly, Joann Fabrics is preparing to shutter 500 stores nationwide as part of its restructuring efforts.
Also Read – Act Fast: Data Breach Victims Can Claim Up to $6.5K With One Document
Kirkland’s Responds to Retail Challenges with Store Closures
Among the latest retailers facing financial difficulties, home décor and housewares company Kirkland’s has announced plans to shut down or revamp approximately 6% of its 317 store locations across 35 states. The move is part of a broader effort to improve profitability amid a challenging economic landscape.
Kirkland’s recently outlined its strategic adjustments in a company statement, highlighting efforts to optimize operations and improve financial performance. The company, which has expanded its retail offerings to include Kirkland’s Home, Bed Bath & Beyond, buybuy Baby, and Overstock, aims to set new performance standards and enhance profitability across its portfolio.
To address underperforming locations, Kirkland’s will either implement turnaround strategies for struggling stores or close those that no longer make economic sense. CEO Amy Sullivan emphasized the company’s progress in stabilizing operations over the past year and expressed optimism about leveraging its partnerships with Beyond, Inc. to drive future growth.
Enhancing E-Commerce and Product Offerings
In addition to closing select stores, Kirkland’s is focusing on strengthening its e-commerce platform. Acknowledging underwhelming online performance, the company will work with Beyond to enhance the digital shopping experience and increase conversion rates. Meanwhile, its internal teams will prioritize profitability by refining inventory selection, cutting products that fail to meet margin standards after accounting for shipping and returns.
Kirkland’s also plans to expand its private-label distribution under the Kirkland Home brand, extending its exclusive home décor and everyday essentials into new Bed Bath & Beyond stores. Additionally, the company is looking to increase e-commerce sales in furniture, patio, and rugs by integrating these product categories across multiple retail platforms, including Overstock.
Also Read – Homeowners Have Days Left to Claim Up to $400 in Appliance Settlement
Financial Outlook
Despite these challenges, Kirkland’s expects a relatively stable financial performance for the fourth quarter of 2024. The company’s preliminary results indicate a slight 0.6% year-over-year decline in net sales to $148 million. However, it still anticipates a net income of $7.9 million, suggesting that its restructuring initiatives may be setting the stage for long-term improvement.
As the retail sector continues to grapple with economic headwinds, companies like Kirkland’s are taking proactive steps to adapt, ensuring they remain competitive in an evolving marketplace. Whether through store closures, strategic partnerships, or e-commerce enhancements, these shifts will be critical in shaping the future of retail .
- Michelle Trachtenberg’s Passing: Official Cause of Death Finally Disclosed - April 30, 2025
- 21-Year-Old Man Stabbed to Death, Juvenile Arrested in SoCal Incident - April 30, 2025
- 14-Year-Old Boy Repeatedly Hit by Deputy in Southern California - April 30, 2025
