The retail industry has faced significant challenges over the past several years. The sector, already competitive and unpredictable, experienced rapid changes starting in 2020 when the COVID-19 pandemic disrupted established norms.
Five years ago marked the beginning of a new era, and many retailers are still trying to adapt. However, not all succeeded in surviving the pandemic. During the initial phase of COVID-19, nationwide lockdowns forced many businesses to close their doors for extended periods, sometimes for weeks or months.
The sudden halt in foot traffic was particularly devastating for small retailers, especially those reliant on passerby customers. Restaurants, mall-based retailers, and small independent stores faced immense challenges in remaining viable. Numerous smaller businesses were absorbed by larger corporations, which possessed the financial resources to endure the ongoing crisis.
As the world began to emerge from the pandemic, reopening did not necessarily translate to easier conditions for retailers. The industry had consolidated, intensifying competition. Large retailers quickly occupied vacant spaces, driving up rental costs, particularly in smaller and more rural areas. Additionally, increased interest rates made borrowing and expansion more costly for businesses, leading companies like Forever 21, Party City, and Joann to eventually file for bankruptcy.
The Midwestern convenience chain Mega Co-Op experienced similar difficulties. The chain, typically situated along busy highways, filed for bankruptcy in 2023, resulting in the closure of 13 stores and the termination of a longstanding partnership with Holiday Stationstores in May 2024. Despite restructuring and emerging from bankruptcy in June 2024, financial instability and a lack of profitability led to the decision to shutter the remaining gas stations and convenience stores by March 14, 2025.
CEO Mike Buck explained that ongoing financial struggles and diminished fuel margins were significant contributors to the company’s insolvency, according to a report by local station WQOW. Mega Co-Op’s website is currently inactive, and its remaining locations have been permanently closed.
