Brick-and-mortar stores have had a tough time in recent years — and that trend is likely to continue. Experts say major retailers are expected to continue closing stores at a rapid pace, part of the longstanding and continuing decline of America’s retail landscape.
This does not mean that the country will run out of stores anytime soon, as the U.S. reportedly had about 800,000 retail businesses at the end of 2022. But a big jump in closures was seen in 2024 — the largest since the pandemic — and an even bigger jump is expected in 2025.
How many retail stores will close?
About 15,000 retail stores are expected to close this year, according to data from retail analysis firm Coresight Research. If this estimate is accurate, it will be significantly higher than last year, as “store closures totaled 7,325 in 2024, the highest number of store closures seen since 2020 when Coresight Research tracked almost 10,000 closures,” the firm said. Closures “outpaced openings in 2024 with a net loss of 1,355 stores.”
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Major retailers have “already announced 1,925 store closures so far in 2025 — and that was only as of Jan. 10,” said CNBC. By this date, stores had announced 334.3% more closures compared with the same time period in January 2024, according to Coresight. Party City, Macy’s, Joann, JCPenney, Big Lots and Walgreens are among the most well-known chains that have announced store closings for 2025. But some other chains with large nationwide presences, like “Amazon, Costco and Walmart, have gotten bigger as shoppers seek value and convenience.”
Why are so many stores expected to close this year?
It comes down to a variety of factors. Financial hardships like “bankruptcies, liquidations and chains leaving unprofitable locations will be the catalysts for most of the store closings,” John Mercer, Coresight’s head of global research, said to The Washington Post. This happens as consumers “seek out stores that offer better deals and a smoother shopping experience.”
There are issues beyond financial troubles, too. Some retailers are “still adjusting to an environment that was reshaped by the pandemic, while others grapple with the ripple effects of high interest rates,” said the Post. Many industries are working to reorient from the “height of the pandemic, when consumer spending rose and leases for retail space were discounted,” said Mark Cohen, the former director of retail studies at Columbia Business School, to the Post.
The closings are “not just about one company — it is a structural shift in the retail landscape,” Coresight CEO Deborah Weinswig said to USA Today. Retail brands that “fail to adapt to new consumer expectations and personalized marketing and merchandising are facing an existential crisis.” Digital marketplaces are also “offering rock-bottom prices and instant access to products that once drove foot traffic to physical stores,” making it even harder for brick-and-mortar stores to keep up.
This year is “shaping up to be the worst year for store closures in recent history,” Weinswig said to USA Today. There is a “significant place for physical retail, but it needs to adapt to today’s consumer.” After 2025, retailers must “take a step back, reassess and revolutionize the physical store environment.”
