Top Retailers Expected to Exit Physical Stores in 2023

The surge of online shopping platforms has led many major brands to rethink their physical storefronts. Despite some customer loyalty to brick-and-mortar locations, numerous prominent companies are planning store closures in 2023 due to declining foot traffic and financial strains. Consumers may want to visit their favorite brands’ stores soon to enjoy personalized deals before they disappear.

Morphe Cosmetics
Morphe, known for its beauty products, operates around 18 stores nationally. Recently, its parent company, Forma Brands, announced plans to close all physical Morphe stores and file for bankruptcy.

Financial challenges, rent issues, and legal disputes contributed to this decision. However, online shopping remains available for customers. Established in 2008, Morphe's closure marks the end of a 15-year journey. Similar cosmetic retailers are also shifting focus online or shutting down, driven by the rise of e-commerce.

Party City
As the largest provider of party supplies nationwide, Party City offers decorations, costumes, and tableware for celebrations. However, changing social habits, favoring destination events over home parties, have impacted its sales. Declining revenue led to a 19% workforce reduction, signaling financial instability. Some party store locations are expected to close in 2023, though the brand’s online presence will continue.

Kroger and Albertsons
The future of grocery retailing is shifting as industry giants Kroger and Albertsons plan a merger to stay competitive. This merger has already resulted in store closures, with more to follow throughout 2023. Chains like Safeway and Harris Teeter, owned by these companies, are also likely to shut some locations, though specific closures have yet to be announced.

Sears
Once a ubiquitous retailer offering a wide range of products, Sears filed for bankruptcy in 2018, leading to widespread store closures. Currently, fewer than 20 stores remain, with closures imminent. Declining popularity, economic downturns, and unprofitability have contributed to its decline. Shoppers may want to visit remaining stores soon before they vanish completely.

Signet Jewelers
Operating brands like Kay, Jared, Zales, and Piercing Pagoda, Signet Jewelers announced earlier closures of several hundred stores. While some locations remain, the surge in online jewelry shopping suggests even more store closures to come in 2023.

Macy’s
Once a retail giant with numerous department stores nationwide, Macy’s has been closing underperforming outlets due to financial and supply chain issues. The process started in 2020 and is nearing completion. Eventually, Macy’s will focus on a limited presence in key malls, with its online platform remaining operational.