NYC’s largest chain stores continue to struggle

For the fifth time in the last seven years, the total number of chain stores in New York City has dropped. The Center for an Urban Future (CUF) on Wednesday released its annual “State of the Chains” report, which found a 1.3 percent decrease in the number of chain stores across the five boroughs over the last year. These findings indicate that, despite many of the city’s central commercial districts experiencing a strong recovery in storefronts, major national retailers continue to struggle.

The report shows a continued trend over the past several years, with national retailers—especially those selling merchandise like cell phones, clothing, shoes, and other items—experiencing the largest year-over-year declines, illustrating the impact of the rise of e-commerce on in-person shopping.

But this year’s decrease in chain stores was more widespread, with many food retailers also reducing their store footprint, and all five boroughs experiencing a net decline in retailers. Overall, significantly more retailers had fewer store locations (130) than had a net gain (94), and 229 retailers saw no change in store locations.

While the decline in chain stores has affected a broad range of retailers, the city’s largest chains have struggled the most. The report found that 10 of the 15 largest chains from 2023 had fewer outposts in 2024, with the top 10 retailers closing a combined 111 stores over the past year.

Every borough has witnessed a decline in chain stores over the past year. Manhattan had the largest percentage decline (-1.8 percent, or 56 stores), Brooklyn had the second-largest decline (-1.5 percent, or 27 stores), followed by Queens (-1 percent, or 17 stores), Staten Island (-1 percent, or five stores), and the Bronx (-0.4 percent, or four stores).

Over the last year, 92 of the city’s zip codes saw a drop in chain stores, while 56 experienced growth. The zip codes with the largest decline include: 10019 in Midtown East (14 stores), 10003 in the East Village (12 stores), 10010 in Gramercy Park (10 stores), 11373 in Corona/Elmhurst (9 stores), and 10007 in Lower Manhattan/Tribeca (8 stores).

The report reveals that many national retailers remain below their pre-pandemic store levels. As of November, the number of chain stores in NYC was 15.4 percent lower than in late 2019, or 1,225 fewer locations. More than half of the retailers featured in CUF’s 2019 report now have fewer stores in the city, with 11.2 percent having completely left NYC.

Metro by T-Mobile (formerly MetroPCS), the second largest retailer in last year’s report, has closed 229 stores since 2019, down from 468. Over the past year alone, the cellphone retailer closed 30 stores, the most significant loss among all chains since 2023.

Duane Reade experienced the second-largest losses, closing 22 stores, followed by T-Mobile with 15 closures and Subway with 13.

However, despite the continued decline in chain stores, the city’s retail sector is showing a significant recovery compared to the bleak period following the pandemic. Almost 100 retailers registered an overall gain of locations over the past year, and 45 of them expanded by at least two stores.

Food retailers drove much of the growth, with 30 of the 45 chains that expanded by at least two locations specializing in food and beverages. Overall, the sector grew by 1.6 percent, increasing from 3,974 locations in 2023 to 4,036 in 2024. For the first time, food chains now make up more than half of all chain stores in CUF’s report.

For the 17th year in a row, since CUF began tracking chain store trends, Dunkin’ has maintained its title of having the most stores in NYC, with 626 locations. In 2008, when CUF’s first report was published, Dunkin’ had just six more stores than fellow coffee giant Starbucks. Today, it boasts nearly 300 more stores than Starbucks, which reported 328 locations (up six stores since last year).

For the third consecutive year, Starbucks holds the second-most chain stores in New York, despite having fewer locations than before the pandemic (351 in 2019). In 2021, Starbucks surpassed Metro by T-Mobile to take the number two spot and has continued to increase its lead.

You can read CUF’s entire 2024 State of the Chains report here.

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