These CA Retailers Are Closing Locations In 2024 (2024)

As businesses continue to recover from the blow that the COVID-19 pandemic brought, many major retailers have struggled to bounce back.

Posted Mon, Dec 25, 2023 at 2:08 pm PT|Updated Wed, Dec 27, 2023 at 3:44 pm PT

According to Forbes's 2024 retail forecast, the industry will likely face a reckoning in the new year as consumers come to terms with the post-COVID world.

"US consumer spending has held up remarkably well this year despite elevated inflation and higher interest rates. However, this trend cannot hold, in our view," according to The Conference Board, an organization of finance researchers that advises the federal government.

Since the pandemic, the economy has grown at a much smaller rate, Forbes analysts said. According to researchers at The Conference Board, consumer confidence in the economy going into 2024 has been mixed, and the pandemic-induced turbulence appears to be coming in for a landing.

Consumers are becoming more confident in the economy. At the same time, they are reporting that their financial conditions are bad, according to The Conference Board. Purchases of big-ticket appliances, as well as homes and cars, rose moderately at the end of the year.

Despite consumer trends leveling out, numerous businesses have declared bankruptcy as a result of financial hardships in 2023.

Several major chains have announced plans to close locations in the upcoming year without announcing where the closures would take place. According to Business Insider and Bestlife.com, chains including Dollar Tree, T.J. Maxx and Bath & Body Works addressed plans to evaluate underperforming locations for possible closure in 2024.

Here are the chains that will close many stores in 2024 or shut down entirely before another year rolls around:

1. Rite Aid

Rite Aid announced it would be closing more than 60 stores in the Golden State due to bankruptcy. The company announced in court documents in October that more than 150 of its underperforming stores across the country will be closed.

In California, the list of closures included seven stores around Livermore, Sacramento, Capitola, Oakhurst, Truckee and South Lake Tahoe.

The drug store chain's bankruptcy came amid slumping sales and heavy debt from an opioid lawsuit filed by the Justice Department in March that accuses the company of filling prescriptions for large quantities of opioids "that had obvious, and often multiple, red flags indicating misuse."

Rite Aid appointed a new CEO, Jeff Stein, who will lead restructuring efforts and also serve on the company's board of directors.

"With the support of our lenders, we look forward to strengthening our financial foundation, advancing our transformation initiatives and accelerating the execution of our turnaround strategy," Stein said in the statement. "In doing so, we will be even better able to deliver the healthcare products and services our customers and their families rely on — now and into the future.

2. Party City

Party City filed for bankruptcy at the beginning of 2023, prompting the go-to party goods retailer to close almost 40 stores nationwide. California is home to the largest number of Party City store locations in the country, and four of its 108 stores in the state are closing.

• Downey: 7171 Firestone Blvd.
• Lodi: Southwest Plaza, 2350 W. Kettleman Lane
• Marina: The Dune on Monterey Bay, 125 General Stillwell Drive
• Palmdale: Amargosa Commons, 39451 10 St. W.

“As we take this important step to put our business on stronger financial footing for the future, we are as committed as ever to inspiring joy by making it easy for our customers to create unforgettable memories," Party City CEO Brad Weston said.

3. Jenny Craig

Weight loss and management business Jenny Craig announced it would close its doors in May "due to its inability to secure additional funding," according to internal documents obtained by NBC News.

Jenny Craig had roughly 500 company-owned and franchised locations across the country, including 68 locations in California.

4. Buy Buy Baby

A last-ditch effort to save Buy Buy Baby fell apart, and the company announced it would close all its stores in California and across the U.S. as part of its bankrupt parent company's ongoing liquidation.

CNBC reported that the owner of children's apparel company Janie and Jack was "eager" to buy the Bed Bath & Beyond chain and keep it running, but could not reach a deal on its value.

The 15 remaining stores in California were scheduled to close as of July, according to the retailer.

5. CVS

CVS announced in Nov. 2021 that it would shutter more than 900 locations over three years — 300 stores per year. The company said the closures would reestablish a "new retail footprint strategy aligned to evolving customer needs," Yahoo reported.

The latest round of closures include an announcement this month to shutter yet another San Francisco location, leaving the city with a dozen CVS locations, down from 21 just two years ago.

6. Z Gallerie

Home goods and design retailer Z Gallerie offered store-closing sales in October following its parent company, DirectBuy Home Improvement, Inc., filed for Chapter 11 bankruptcy protection.

Z Gallerie had a total of five stores in California including Sherman Oaks, Costa Mesa, Encinitas, Corona and Roseville near Sacramento.

7. Tuesday Morning

The discount home goods retailer Tuesday Morning Corp. filed for bankruptcy in February and announced it would close 31 of its 37 California stores in February.

In the Feb. 14 bankruptcy filing, Chief Executive Andrew Berger cited “exceedingly burdensome debt.” In a statement, Tuesday Morning said it had secured a $51.5 million debtor-in-possession commitment from Invictus Global Management to support operations during the bankruptcy proceedings.

“We have determined that the best path to reorganizing and transforming the company begins with a Chapter 11 filing,” Berger said in a statement. “Fortunately, we have the support of a committed capital provider in Invictus and a clear vision for transforming into a focused retailer that serves its core, heritage markets in a profitable manner.”

8. Foot Locker

Foot Locker said it would shutter 545 stores nationwide, including 125 of its Champs Sports locations by 2026, as part of a “reset” that includes opening about 300 “new concept” stores, according to Business Insider.

9. Big Lots

The discount retailer announced plans to shut down underperforming stores in urban areas, including three in California. The chain announced plans to focus on its small-town locations. The chain recently closed locations such as its Westminster store in Orange County and announced plans for closures in Citrus Heights, Dublin and Ridgecrest, according to Business Insider.

10. Macy's

Macy's is undergoing a three-year-plan to close 125 locations including shopping mall locations in California. In 2023, the chain announced the closure of its Baldwin Hills Crenshaw Plaza in Los Angeles.

11. Banana Republic

Banana Republic and its parent company, Gap, said about 350 stores would close in 2023 and that it would end the year with about 866 stores. The expansive slate of closures in the Golden State included major locations inside San Francisco Centre and Embarcadero Center, with plans to open a new flagship location in San Francisco's Union Square in October.

12. Target

Target blamed organized retail crime in a September announcement of nine store closures in the New York, San Francisco, Seattle and Portland, Oregon, areas. Previously, Target closed four stores with declining foot traffic — one each in Philadelphia and its hometown of Minneapolis and two in Washington, D.C.