Closing Up Shop: A Look at Bed Bath & Beyond and Tuesday Morning Vacated Stores in the Intermountain West  

Mountain West Commercial Real Estate (MWCRE) has released a report looking at two retailers that announced the largest number of store closures in 2023, Bed Bath & Beyond and Tuesday Morning. Together, these two retailers accounted for more than a quarter of all U.S. store closures in 2023, significantly impacting the retail landscape in the Intermountain West.

• In 2023, more than 4,600 retailers shuttered stores, an 80% increase from the previous year. By May 2024, more than 30 retailers announced closures with more than 3,200 locations.
• Retail vacancy in the Intermountain West has reached a historic low (3.8%). Although some new construction continues, developers are increasingly reluctant to start new speculative development given the higher-interest rate environment.
• In 2023, states in the Intermountain West saw Bed Bath & Beyond and Tuesday Morning close more than 110 stores and vacate over 2.5 million square feet. More than 1.3 million square feet remains vacant (51.6%).
• Although retailers have or are planning on closing thousands of stores, the market remains extremely competitive with a historically low vacancy rate, which will continue to apply upward pressure on rents.
• Sources: Closing Up Shop: A Look at Bed Bath & Beyond and Tuesday Morning Vacated Stores in the Intermountain West