Retailers seem to be struggling across the board these days — regardless of their clientele.
In recent years, a number of luxury retailers have made the tough decision to close their doors due to dwindling sales and shrinking margins.
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Niche retailers haven’t been spared, either.
In late 2024, Party City filed for bankruptcy for the second time, citing factors like inflation and a changing market. And in early 2025, fabrics giant Joann also filed for bankruptcy for a second go-round. Joann pointed to declining sales and increased competition as reasons for seeking Chapter 11 protection.
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The unfortunate reality is that as long as inflation remains elevated, retailers are likely to struggle.
When consumers have to choose between putting food on the table and buying party supplies or crafting materials or even new clothing, they’re likely to prioritize feeding their families (or at least one would hope).
That means retailers could be in for another tough year. And we could see more store closures as 2025 chugs along.
Discount retailer closes suddenly for shocking reason.
Image source: Scott Olson/Getty Images
Discount retailers should be poised to shine
In an age when consumers are aiming to cut costs and hang onto every dollar they can, discount retailers are in a prime position to snag their business and pull shoppers away from higher-priced competitors.
At the same time, discount retailers have the challenge of living up to their name and reputation. Because customers expect exceptionally low prices at discount stores, they may be quick to jump ship when they see anything but.
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That’s effectively forced discount retailers to compromise on profits in favor of more competitive pricing.
Not only are discount retailers feeling the sting of inflation much like the retail industry as a whole, but many big chains are making plans to close underperforming stores to cut operating costs.
As of late 2024, for example, Dollar Tree had closed almost 700 locations with poor sales numbers as part of a plan to shutter nearly 1,000 locations in total.
Dollar Tree location closes for shocking reason
Dollar Tree is on a mission to strategically close stores to improve broad profitability. But earlier this month, a North Providence Dollar Tree closed for a completely different reason — unsanitary conditions.
The store in question, which is located off of Smith Street, was cited by health inspectors for dead mice and rodent droppings. Signs of infestation could be spotted throughout the store, from its shelves to its floors to the stock room.
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Not surprisingly, local customers were reeling when they learned of the closure.
Residents of the neighborhood say Dollar Tree is vital to the community, and that many lower-income shoppers rely on the store to stock up on essentials. In the wake of its closure, many are left scrambling.
A spokesperson for the Health Department said that Dollar Tree has been given the leeway to take as much time as it needs to address its rodent problem and prevent a recurrence. Sanitizing the store will also be necessary.
But residents are hoping that their beloved store will open back up as soon as feasibly possible.
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Unfortunately, this isn’t the first time the company has gotten into trouble for unsanitary conditions. In early 2024, Family Dollar Stores, a subsidiary of Dollar Tree, was fined $41.6 million for selling items that were stored in a warehouse filled with rodents both dead and alive.
Dollar Tree will need to clean up its act if it wants to retain customers and avoid needless closures in markets where business is actually booming. And it certainly can’t avoid repeat incidents like this if it wants to preserve its reputation and increase its customer base.
