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What's the future for Joann, Red Lobster in Redding, as retail, restaurant shakeup grows?

What's the future for Joann, Red Lobster in Redding, as retail, restaurant shakeup grows?

  • 17.03.2025 11:00
  • eu.redding.com
  • Keywords: danger, success

Joann, Big Lots, and other retailers are closing in Redding as part of a broader retail shakeup driven by online competition. The closures leave large empty spaces, making it tough for smaller communities to find suitable replacements.

Amazon Reports

Estimated market influence

Joann

Negativesentiment_dissatisfied
Analyst rating: N/A

Joann is closing all its store locations under new ownership.

Red Lobster

Negativesentiment_dissatisfied
Analyst rating: N/A

Red Lobster closed in Redding last spring, one of 50 locations across the country that closed.

Context

Analysis and Summary: Store Closures in Redding

Market Trends

  • Retail Apocalypse: The retail industry is experiencing significant shakeups, with major brands like Joann Fabrics, Big Lots, and Party City closing numerous locations nationwide.
  • E-commerce Impact: Online competition, particularly from Amazon, continues to drive brick-and-mortar store closures.
  • Smaller Retail Footprints: Restaurants and retailers are adopting smaller spaces and formats to adapt to changing consumer behaviors post-pandemic.

Business Impact

  • Joann Fabrics: Closing all 800 U.S. locations under new ownership.
  • Big Lots: Sold 200-400 stores to Gordon Brothers Retail Partners LLC, with the Redding location closing in early 2025 after over 30 years.
  • 99 Cents Only: Closed its Redding store in spring 2024 after 21 years.
  • Red Lobster: Closed one of 50 U.S. locations in spring 2024, leaving an empty building.
  • Hilltop Diner: Closed after three years in business in May 2024.

Competitive Dynamics

  • Surviving Chains: Macy’s and Kohl’s remain open in Redding despite national store closures.
  • Red Robin: Plans to close 70 locations over five years, with 10-15 closures in 2025.
  • Pop-Up Retail: Empty spaces are being considered for pop-up stores or seasonal businesses, such as the former Barnes & Noble location becoming a Halloween store.

Strategic Considerations

  • Local Economic Impact: Smaller communities like Redding face challenges filling large retail vacancies due to population and infrastructure limitations.
  • Potential Reuse: Vacant buildings may be repurposed for housing or smaller retail units if feasible.
  • Real Estate Challenges: Finding tenants for large spaces, such as the former Red Lobster building (8,000 sq ft), is difficult.

Long-Term Effects

  • Economic Uncertainty: Store closures leave empty buildings and uncertainty about future tenants, affecting local economies.
  • Adaptation: Retailers and restaurants are adapting by downsizing or changing formats to survive in a competitive market.

Regulatory Impacts

  • Local Government Involvement: Shasta County is considering reusing vacant spaces for government offices or other purposes, such as the former Raley’s supermarket.

This analysis highlights the broader retail industry trends affecting Redding and the challenges faced by local businesses and economies.