It may not feel like it, but we’re still in the first month of the new year.
2025 has been met with some interesting and unexpected developments in the retail sphere, and more broadly in U.S. markets.
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The Federal Reserve announced in late January that it intends to hold off on further interest rate cuts, as optimism about inflation curbed. The overnight borrowing rate remains steady at 4.25%-4.5%.
CPI numbers also indicate that things are pricier; December’s most recent numbers indicate the cost of core consumer goods, services and materials rose by 0.4% compared to the month prior.
More Retail:
- Walmart, Target, Costco make major 2025 announcement
- Formerly bankrupt retailer makes painful decision to close more stores
- Top investor takes firm stance on troubled retail brand
- Walmart and Costco making major change affecting all customers
And some retailers continue to go gangbusters, like Walmart, Target, Costco and Amazon. The country’s largest box stores offer consumers a safe haven from price increases, offering major price cuts and savings opportunities — and capturing a renewed zeal for deals in the meantime.
Related: Formerly bankrupt retail chain makes painful decision, closing stores
“Consumers tell us their budgets are being stretched,” Target CEO Brian Cornell said during a recent earnings call. “They’re becoming resourceful, focusing on deals, then stocking up when they find them. Consumers allow themselves to splurge a little bit when they find the right item.”
Some retailers are struggling
While some of the strongest giants in the game at seeing higher revenues, that doesn’t mean there’s enough to go around for everyone.
Plenty of other shops — from retailers to restaurants — have struggled in the aftermath of covid. Those who survived the initial rocky start to the 2020s aren’t necessarily safe just because we’re back in person and customers are shopping again.
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A consolidation of retail giants means there’s fewer pieces of the pie to go around. Walmart and Amazon are acquiring more points of interest and expanding their footprints — both digitally and in person — cutting into other, smaller retailers’ share.
Such is the case with Joann Fabrics, for example. The formerly bankrupt specialty craft store caters to a niche audience — people who quilt, scrapbook, and partake in other DIY projects. And while there aren’t a ton of stores you can find dozens of novelty fabrics and textiles, you can pretty much find anything online these days, or it’s at Walmart.
Which means it’s no longer tenable to operate the over 800 stores that Joann runs. Profits dry up, stores become liabilities, and bankruptcy protection seems like the only option to try and course correct.
Major retailer back from bankruptcy
But what happens after bankruptcy is a far less clear cut story.
Take The Container Store, for example. The retail giant thrived at malls and busy shopping centers, selling products to help organize pantries, closets, bathrooms, and more. Organizational enthusiasts across the country stocked up on typically pricey storage bins, closet systems, pantry containers, and much more.
But the store struggled in the late 2010s and 2020s. Consolidated net sales for fiscal 2023 amounted to $847.8 million, down 19% compared to 2022. It received a delisting warning from the NYSE last spring and filed for Chapter 11 bankruptcy protection in December 2024.
Now, however, The Container Store is already emerging from bankruptcy — with some changes. It managed to eliminate $88 billion in debt and no longer trades as a public company.
It also refinanced some short term debt; it now has access to $40 million in new financing.
“This is a new chapter in our journey as a healthier company well positioned to drive strategic growth initiatives forward,” The Container Store CEO Satish Malhotra said. “With our restructuring process now behind us, we have renewed energy and excitement to deliver for our customers.”
The Container Store also will close two additional stores, though the chain says those were preplanned and not a part of the bankruptcy proceedings. No employees were eliminated as a part of the process.
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