Experts predict a steep climb in U.S. store closures this year, signaling tough times for many traditional retailers.
Key Facts:
- Coresight Research projects around 15,000 store closures in 2025.
- Approximately 5,800 new store openings are expected, creating a net loss of more than 9,000 locations.
- More than 2,000 closures have already begun this year, a jump of 334.3% compared to the same period last year.
- Party City, Big Lots, Kohl’s, and Macy’s have already announced waves of shutdowns since late 2024.
- In 2024, there were 7,325 closures, marking the highest level since 2020’s nearly 10,000 closures.
The Rest of The Story
Coresight’s data shows that store closures have surged, driven by lingering inflation and shifting consumer preferences.
Shoppers increasingly look online to find bargains, bypassing conventional brick-and-mortar stores that struggle to keep prices low and shelves stocked.
Deborah Weinswig, CEO of Coresight Research, explained that retailers “unable to adapt supply chains and implement technology to cut costs” suffered the most last year.
At the same time, new online players like Shein and Temu have captured customer attention.
Weinswig noted that people want “the path of least resistance,” and that many will shop virtually rather than contend with poor in-store experiences.
Coresight sees three main types of closures taking shape in 2025: complete liquidations (like Party City), large-scale shutdowns under bankruptcy (like Big Lots), and strategic downsizing from legacy retailers (such as Kohl’s and Macy’s).
Commentary
It’s devastating for employees and local communities to see stores close, but these losses often stem from the appeal and affordability of online shopping.
Consumers appreciate being able to compare prices instantly and have items shipped directly to their door.
To survive, traditional retailers must offer services that online competitors can’t match.
This could mean better-trained staff, more personalized experiences, and in-store conveniences that keep shoppers coming back.
The Bottom Line
The road ahead looks challenging for physical retail, with thousands more closures on the horizon.
Retailers that adapt quickly could still stay in the game, but clinging to old methods is no longer an option.
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