Staggering Surge: 15,000 US Retail Stores Expected to Close in 2025!

Dive Brief:

U.S. retailers are projected to close more stores than they open again this year, as per Coresight Research. Last year, 5,970 stores opened while 7,325 closed, resulting in a net loss of 1,355 by January 10.

In 2025, Coresight anticipates around 15,000 U.S. stores to shut down, with openings expected to remain steady at approximately 5,800.

So far this year, Coresight has tracked over 2,000 closures, marking a 334% year-over-year increase, while openings have decreased by nearly 30%.

Dive Insight:

These trends highlight liquidations where retailers close all locations, distressed companies scaling back due to restructuring or bankruptcy, and shifts in brick-and-mortar strategies.

Notable closures this year have been significantly influenced by companies like Party City, Big Lots, Kohl’s, and Macy’s.

For instance, Party City filed for bankruptcy at the end of last year for the second time in two years, announcing plans to liquidate and close all its nearly 700 stores.

Big Lots, which is also in bankruptcy, had initially planned to close all locations but later struck a deal with Variety Wholesalers to keep some stores operational.

Kohl’s is not on the brink of bankruptcy but has been experiencing challenges, leading to the decision to close 27 underperforming stores by April, a shift from previous statements to expand its fleet.

Macy’s Inc., while relatively financially healthy, has also reduced its store footprint significantly, previously starting the 21st century with nearly 900 locations but now planning to close 150 stores over three years, with 66 confirmed closures for this year.

At the end of 2024, Party City filed for bankruptcy for the second time in about two years, this time in order to liquidate.

Daphne Howland/Retail Dive