Over 2,000 Store Closures in 2024
Why so many retail stores are still closing

For many retailers, business is still tough, but the environment may be turning.

This year, 13 major companies have said they will shut down more than 2,000 stores around the country. That's on top of 4,548 in 2023, 3,818 in 2022, 5,228 in 2021 and nearly 9,700 in 2020. And there are more beyond that: small companies with just a few stores or maybe just a neighborhood mom-and-pop operation.

The forces driving these closures fit into one or more buckets, including:

• The Covid-19 pandemic. It's the public-health-infused socioeconomic crisis that keeps on giving. Retailers were body-slammed in 2020 into 2021 by the Covid-generated slump. But the pandemic is also responsible for many continuing closures.

• Inflation. Yes, inflation has been a problem. Freight rates jumped as Covid-19 eased and life resumed. Rising fuel and energy costs cut into profit margins. Labor costs, in many cases, have risen faster than sales. As important, many customers have been telling economic researchers (and politicians) they must cut back on personal spending. Retailers, hit by higher financing costs on inventories, are forced to cut prices to keep shoppers, but that guts profit margins.

• Changing shopping patterns. Online shopping now accounts for at least 15% of all U.S. retail sales, according to CapitalOne data, and may double by 2030. Online now includes far more than Amazon.com (AMZN) . Walmart (WMT) , Target (TGT) , Costco (COST) and others are investing in their online capacities. Shopping malls have been struggling for years in part because shoppers have been moving or changing buying habits. Big chains would rather run stores near their customers.

• Intense competition. If you own a small bookstore, your problem is the Amazon effect: A shopper comes into your shop, sees a book of interest and orders it online. That, of course, is just a piece of the competitive challenge. High-end retailers are struggling to find goods that high-end customers want. A bigger problem: Big-box retailers have been revamping stores and cutting prices (thanks to better terms from vendors). That undercuts the profit margins of smaller operators.

• Too many stores. An uncomfortable truth is that by 2018 U.S. retailers occupied 23.5 square feet per person, the most in the world. Canada and Australia were second and third at 16.8 square feet and 11.2 square feet, respectively. Then, the pandemic erupted.  thestreet.com
 

The Lasting Business Impact of the Pandemic
Restaurants made big changes to cope with the pandemic. Lots of them have stuck.

From QR code menus to self-ordering kiosks, a couple of pandemic-driven changes have actually stuck in American restaurants.

1. The QR code revolution: The use of QR codes in restaurants surged during the pandemic. First introduced to replace paper menus, they have now become commonplace.

2. Cleaning out in the open: You may have noticed some restaurants are now a lot more keen to show just how clean they are. "After COVID, it not only became more acceptable but even encouraged to visibly showcase the level of cleanliness."

3. A whole lot of waste: Many cafés appear to have retreated from efforts to promote the reusable cup. Before the lockdowns, great strides were being made to discourage disposable utensils.

4: Self-service kiosks are everywhere: Self-service kiosks have found their way into restaurants, grocery stores, and even furniture retailers. This was already a trend, but it accelerated during the pandemic and has continued in the US since.

5. The turn toward takeout: Food delivery services became a go-to during the pandemic - this hasn't entirely changed. This brought about a pivot to how we eat non-home-cooked meals.

6. Less experienced workers: "Restaurant closures during COVID lockdowns encouraged a lot of seasoned hospitality workers - from cooks to waiters - to find employment in other industries," King said. "They took decades worth of institutional memory with them," she added. It doesn't help that there's a shortage of workers in the hospitality industry. businessinsider.com
 

444 Closures, 500 Openings
7-Eleven To Close 444 Stores, Open 500 New Stores, and More
Seven & i Holdings Co., Ltd. has released a presentation outlining its future plans. By 2027, the company plans to enhance its commissary network, aiming for approximately 45% store coverage with 16 new commissaries and 16 bakeries across its Virginia and Ohio distribution centers, which service 1,352 and 1,108 stores, respectively.

Furthermore, Seven & i is set to construct 500 new stores from 2025 to 2027, further enhancing its store network while supporting proprietary products, digital services, and streamlined operations. This strategic growth underscores the company's commitment to meeting evolving customer needs and driving traffic to its locations.

The company has outlined a comprehensive long-term plan to expand store coverage across key regions, including Southern California, Florida, and Ohio, with targeted operations beginning in 2024. Sales from commissaries have become an integral part of the fresh food business, contributing 14.5% in the second quarter of 2024, with significant growth observed in Texas and Virginia. retailwire.com


5 retail horror stories of 2024

McDonald's says store visits and sales dropped in wake of E. coli outbreak
 

The Importance of Cybersecurity Expertise
Why Cybersecurity Acumen Matters in the C-Suite

Until CEOs and boards prioritize learning more about mitigating threats, organizations are leaving themselves and their businesses open to the potential for disaster.

With the mounting, competitive pressure to leverage generative artificial intelligence (GenAI), now is the time for CEOs to better understand the technology themselves.

Cybersecurity deserves this same level of attention - and so does the discrepancy between C-level enthusiasm and skill level. Leveraging AI tools, cybercriminals and their attacks have become more sophisticated, and with this technology comes a swath of security concerns when used in a company environment. As GenAI use grows within organizations, so does tension across executive teams and in the boardroom, especially as the chief information security officer (CISO) role shifts in remit. We're also seeing significant spikes in data breaches. All of this coalesces to signal the need for more cybersecurity acumen across the C-suite in order to provide leadership and guidance to firms.

Why? Because enduring companies understand how to navigate one of the most common and consequential risks in business.

Improved Strategic Decision-Making, Resource Allocation, and Collaboration

Cybersecurity acumen at the top of the org chart can significantly impact the company's overall security posture and ability to manage risk. This, in turn, translates into several additional benefits for the company.

For starters, companies can now integrate security into decision-making processes and strategic direction. This should never be an afterthought. Cyber-risk lurks everywhere and crops up in more decisions than people realize. It's not just in overly simple passwords or opening phishing emails; software-as-a-service (SaaS) tools can serve as an easy entry point for man-in-the-middle attacks that threaten businesses.

Leaders in 2024 must recognize the need for security. While businesses have access to incredible levels of technology that can help a company thrive, so do malicious actors. Understanding the variety of sources a threat can stem from better equips a leader to make strategic choices that bolster the protection of data and intellectual property, rather than put it at further risk. darkreading.com


Next President Faces Unfinished Cyber Business
Cyber task force has a long to-do list for next president

The change in leadership presents an opportunity to assess what's working, where adjustments could be made and areas that are in most need of prioritization, the McCrary Institute said.

When the next president and their administration takes office in January, they will confront perennial problems and a long list of unfinished cyber business.

A group of 40 cybersecurity experts from McCrary Institute for Cyber and Critical Infrastructure at Auburn University and the Cyberspace Solarium Commission 2.0 released 39 recommendations last week to provide a roadmap for how the incoming administration can address gaps in cyber defense.

The most pressing recommendations - priorities for the first 100 days of the next administration - include regulatory harmonization and a review of the national cybersecurity strategy the Biden administration released in March 2023. The recommendations also call on the administration to prioritize efforts to address the cyber workforce shortage and strengthen public-private partnerships.

The task force insists the time for bold, decisive action is now. While the recommendations in the report don't break new ground, they do emphasize and reinforce goals long sought by the current and previous administrations.  cybersecuritydive.com


Phishers reach targets via Eventbrite services
Crooks are leveraging the event management and ticketing website Eventbrite to deliver their phishing emails to potential targets.

"Since July, these attacks have increased 25% week over week, resulting in a total growth rate of 900%," Perception Point researchers say.

The phishing emails impersonate legitimate companies

The phishing emails look like they are coming from Eventbrite because they are, but their content is crafted to impersonate legitimate businesses such as NLB Group (financial institution), EnergyAustralia (energy company), DHL (delivery service), Qatar Post (post service), and others. helpnetsecurity.com


Inside console security: How innovations shape future hardware protection

Poor vulnerability management could indicate larger cyber governance issues, S&P says