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Epic Economist, 4/1/25
"Walmart And Other Retailers Are Closing
Thousands Of Stores Amid Fears Of Dark Times Ahead"
"Picture this: you stroll up to your go-to Walmart, excited for a quick shop, only to see a big ‘Closed’ sign staring back at you. It’s not just a one-off—thousands of stores, from Walmart to Macy’s, are shutting down across the U.S. What’s going on? Are we heading into a retail apocalypse? In this video, we’ll unpack why these closures are happening, how they’re shaking up communities and your wallet, and what some retailers are doing to fight back.
Let’s start with Susan, a single mom from Ohio who’s been shopping at her local Walmart every week for a decade. It’s where she grabs diapers, cereal, and even the occasional toy to keep her kids happy. But one Tuesday, she drives up with her toddler in tow, only to find a ‘Closed’ sign glaring back at her. No heads-up, no farewell sale—just a locked door and a sinking feeling in her gut. She’s frustrated, confused, and honestly a little scared. How’s she supposed to get groceries now with gas prices eating her budget and no other store nearby? Susan’s not alone—thousands of families are hitting the same wall as stores vanish overnight. It’s more than a hassle; it’s a punch to people who’ve built their routines around these places. The emotional toll is real: kids asking why they can’t go to Walmart anymore, parents scrambling to stretch dollars further. With 15,000 closures in 2025, double last year’s tally, this isn’t just a trend—it’s a crisis shaking the foundations of daily life.
Let’s kick things off with the big question: why are retailers like Walmart closing thousands of stores? First up, the economy’s throwing some serious curveballs. Inflation’s been nagging us for years, jacking up prices on everything from bread to TVs. The Congressional Budget Office says real GDP growth’s dropping to 1.9% in 2025, down from 2.3% in 2024. That’s less cash for folks to spend, and retailers feel the pinch when wallets stay shut.
So, how did we get here? Rewind to 2020: the COVID-19 pandemic hit, and the U.S. government pumped out trillions in stimulus checks to keep the economy breathing. It worked—sort of—but it also flooded the system with cash, sparking inflation that hasn’t let up. By 2022, prices were up 9.1%, the worst in 40 years. A loaf of bread that cost $1.50 in 2019 now runs $2.50; a $300 TV is pushing $400. Then the Federal Reserve stepped in, hiking interest rates to cool things down. Borrowing got pricier for everyone—retailers included. Chains like Bed Bath & Beyond couldn’t handle the debt and collapsed in 2023. For consumers, it’s a double whammy: higher prices and tighter budgets. With less money to spend—real GDP growth dipping to 1.9% in 2025, per the Congressional Budget Office—people are skipping non-essentials. That $50 sweater? Maybe next month. Retailers feel every skipped purchase, and when sales tank, stores close. It’s a brutal feedback loop: less spending shrinks the economy further, and the cycle spins on..."
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