Last year was marked by a large number of retail store closings and it appears that trend will continue in 2025.
JCPenny is the latest retailer to serve notice that its footprint will get smaller – but not by much. The company said it expects to shutter only eight stores in the U.S. – just 2% of the total. However, that may be just the tip of the iceberg.
A report by Coresight Research predicts 15,000 retail stores will close up shop in 2025, roughly double the number that closed in 2024. The report suggests it has less to do with economic conditions and more about changes in consumer behavior.
Consumers have shifted more of their purchases to online retailers such as Amazon, putting a dent in the profits of traditional department stores. Exceptions are retailers that also sell groceries, such as Walmart, Costco and Target.
Competition from Chinese retailers have also taken a larger share of U.S. consumers’ budgets. Coresight points to Shein and Temu, which ship inexpensive products to U.S. consumers, as major headaches for American retailers.
In other words, the shift in the retail landscape is being driven by how a new generation of American consumers shop. Retailers that haven’t adapted are shrinking, or disappearing altogether.
2024 closings
In 2024, these U.S. retailers closed locations:
Walgreens
CVS Health
Big Lots
Conn's
Rue21
7-Eleven
Rite Aid
99 Cents Only Stores
American Freight
Family Dollar
DK
LL Flooring
Footlocker
Express
Alimentation Couche-Tard
Dollar General
Macy's
The Body Shop
Save A Lot
Bath & Body Works
Dollar Tree
Soft Surroundings
Sam Ash Music
Sleep Number
Burlington Stores
Stop & Shop
Office Depot
Ted Baker
Carter's