The retail landscape in the United States is undergoing a dramatic transformation, with store closures expected to surge in 2025. In 2024 alone, there were 7,325 confirmed store closings, marking an increase of nearly 3,000 from the previous year. Coresight Research predicts that the number of closures could double in 2025, driven by inflation and a significant shift towards online shopping [d8e49e25]. This trend has been echoed by Macy’s Inc., which recently announced plans to close 66 stores as part of its strategy to focus on more profitable locations [f91880f3].
The retail sector is not only facing closures but also a wave of bankruptcies. Big Lots, for instance, is closing over 400 of its 900 stores following a Chapter 11 bankruptcy filing, citing a net loss of $205 million in Q1 2024 [408c0ccb]. Similarly, Party City filed for bankruptcy in December 2024, leading to the closure of 700 stores and the layoff of approximately 16,500 employees [df6cb378]. Family Dollar and CVS were among the retailers with the most closures in 2024, indicating a broader trend of struggling brick-and-mortar stores [d8e49e25].
Despite the closures, some retailers are still expanding. Dollar General and 7-Eleven opened new locations in 2024, and both Dollar General and Dollar Tree are set to open 1,300 stores by September 30, 2025 [acf07e5d]. Walmart U.S. CEO John Furner also announced plans for 150 new or converted stores over the next five years [acf07e5d]. This juxtaposition of closures and openings highlights the evolving dynamics of consumer behavior and retail strategies in the face of economic pressures.
Macy's latest Q3 earnings report revealed a 2.4% drop in net sales to $4.7 billion, underscoring the operational challenges faced by many retailers [f91880f3]. Additionally, an internal issue at Macy's was uncovered when an employee was found to have hidden $154 million in expenses, raising concerns about the company's oversight [f91880f3]. As the retail environment continues to evolve, experts predict that up to 45,000 retailers could close by 2030, reflecting a significant shift in consumer behavior towards online shopping [992f3cfb].
As retailers adapt to these changes, the need for technological integration to enhance customer experiences has become increasingly critical [d8e49e25]. While the current wave of store closures is the highest since 2020, the retail sector is also witnessing a transformation that could reshape its future [df6cb378].