NYC’s Largest Chains Struggling as Number of Stores Dips Again in 2024

In a year of increasing retail bankruptcies and closings in the U.S., it seems New York City’s largest chain stores aren’t doing well, either.

The number of chain stores and restaurants in the city declined by 1.3 percent this year, marking the fifth time in the past seven years that there’s been a net decline in the overall number of chain outlets, according to the Center for an Urban Future’s (CUF) annual “State of the Chains” report released Wednesday.

While the 2024 numbers represent a slight improvement from the 3.4 percent decline in the city’s chain stores from last year, there was still an overall net decline of 109 chain retailers in the city since 2023, from 8,148 to 8,039, according to the report, which ranked over 450 national retailers.

It seems merchandise retailers — such as those selling pharmaceuticals, cellphones, clothing, shoes and cosmetics — have recorded the most store closings this year, likely due to “growing competition from e-commerce,” CUF said.

“The city’s retail sector has come a long way, but it’s still a challenging environment for many retailers,” Jonathan Bowles, executive director at CUF, said in a statement to Commercial Observer.

Restaurant chains, meanwhile, have seen a 1.6 percent increase in their number of outlets this year, growing from 3,974 locations in 2023 to 4,036 locations in 2024, the report found. Most of the food chains expanding in the five boroughs are fast-food and fast-casual restaurants, like Naya and Popeye’s. 

That mirrors what’s happening with non-chain restaurants. A recent report found that the retail market in Brooklyn has recently been dominated by food and beverage tenants seeking smaller spaces.

But New York City’s largest chains might be struggling the most. The 13 largest retailers tracked by the CUF have a combined 797 fewer store locations in New York City today than in 2019, representing an average loss of 61 stores, according to the report.

Some retailers in particular stood out for their losses this year, including Metro by T-Mobile, which lost 30 stores, and Duane Reade, which shuttered 22, according to the report. Other struggling retailers this year were Subway, Rite Aid, 7-Eleven, AT&T and Baskin-Robbins.

ZIP codes that saw the biggest declines in chain stores included ones in Midtown West, the East Village and Gramercy Park, while ZIP codes that cover the Garment District, the Staten Island Mall and Brooklyn Heights saw the most chain stores this year.

Meanwhile, some beauty and discount retailers and grocery stores saw growth this year, such as Sephora, Five Below and Trader Joe’s. And coffee chains Dunkin’ and Starbucks did well, each growing by seven stores and six stores, respectively, over the past year. (But that might change next year as Starbucks executives recently said the java slinger would curb the number of new locations it plans to open.) 

In fact, Dunkin’ remains the largest retailer across the five boroughs, with 626 stores — nearly 300 more stores than Starbucks, according to the report.

The city’s 13 largest retailers are Dunkin’, Starbucks, Metro by T-Mobile, Subway, Duane Reade, McDonald’s, Baskin-Robbins, CVS, Popeye’s, T-Mobile, Chipotle, UPS and AT&T, CUF found.

Isabelle Durso can be reached at idurso@commercialobserver.com.