Why are stores closing in 2025?

Many stores are closing in 2025 due to a mix of long-term shifts like e-commerce dominance, rising operating costs (inflation, labor, rent), and economic pressures, combined with strategic adjustments, such as retailers closing underperforming locations or failing to adapt to new consumer habits favoring online/discount options like Temu and Shein. Major players like Macy's, Starbucks, Rite Aid, and Family Dollar are among those downsizing, while bankruptcies, increased competition, and debt burdens also contribute to closures.

What major stores are closing in 2025?

Here are the retailers who announced store closures in 2025

• Kohl's. ...
• Big Lots. ...
• Macy's. ...
• Dollar General. ...
• Joann. ...
• JCPenney. ...
• Hooters. ...
• Red Robin.

Why are so many stores closing?

Stores are closing due to a combination of rising e-commerce competition, shifts in consumer habits (favoring online convenience, better prices), high inflation impacting spending, increased operating costs (rent, interest rates), and strategic failures like slow adaptation to digital trends, with many physical stores struggling to offer the personalized experience expected online. The pandemic accelerated these issues, while factors like corporate debt and new tariffs add further pressure, forcing retailers to cut underperforming locations. 

Which shops are closing in 2025?

Full List of UK High Street Closures Confirmed For 2025: Morrisons, Poundland, WH Smith, New Look, Santander and More.

What is closing down in 2025?

Major restaurants chain 2025 closures

Starbucks closed around 500 North American cafés as part of a restructuring plan, according to its fourth-quarter earnings call transcript. Denny's closed 70-90 locations in 2025 as part of operational optimization, Fernanda Tronco at TheStreet reported.

18,000 Stores Closing In 2025 | This Is The End Of Retail

Is Walmart losing customers in 2025?

In its second-quarter earnings report for 2025, Walmart revealed that its U.S. comparable sales increased by 4.6% year over year. Also, recent data from Placer.ai found that foot traffic in Walmart stores rose by 1% year over year during the quarter.

Are any new stores opening in 2025?

Target, Walmart, Costco, and Trader Joe's plan to open new stores in 2025. New store openings are planned in over a dozen states, including California, Texas, and Michigan.

Who is going out of business in 2025?

Here are some of the major chains that went bust in 2025:

• Forever 21. Forever 21 filed for bankruptcy (for the second time) in March and closed down its US operations, shuttering about 500 stores. ...
• Joann. ...
• Party City. ...
• Rite Aid.

Will CVS close stores in 2025?

In August 2024, CVS Health identified a “multi-year opportunity” to deliver $2 billion in savings via a variety of methods, and one of those methods will be closing a total of 271 physical stores in 2025, according to the pharmacy retailer's 2024 Annual Report.

Will retail stores still exist in the future?

Despite the higher growth rate of e-commerce sales, Forrester forecasts that physical retail will make up almost 80% of global retail sales in 2025. In North America, 83.8% of retail sales for the fourth quarter of 2024 are projected to occur in physical stores, with the remaining 16.2% happening via e-commerce.

What will replace retail?

Artificial intelligence could take on shopping tasks, with unmanned drones and vehicles delivering orders as needed. AI may use consumer data to tailor the design, layout and merchandising of each store to the needs of its specific trade area.

What stores are going out of business in 2026?

In 2026, several major retailers and restaurants are closing stores as part of strategic shifts, including Macy's, aiming for 150 closures total by year-end, along with significant downsizing from Kroger, Walgreens, Wendy's, and Carter's, focusing on profitability by shuttering underperforming locations, while chains like Noodles & Company and Saks Off 5th are also reducing footprints in response to market changes.
 

Why are all the malls closing?

Malls Closing at Record Rates

As anchor stores like Macy's, JCPenney, and Kohl's close locations, the ripple effect leaves entire malls struggling to survive. Rising rent prices and declining foot traffic compound the problem, making it difficult for mall operators to fill vacancies and maintain profitability.

Why is Joann's closing?

Joann's closed due to a combination of heavy debt from private equity buyouts, declining sales post-pandemic, and intense competition from online sellers and rivals like Hobby Lobby and Michaels; these factors led to Chapter 11 bankruptcy filings and liquidation in 2025, shuttering all stores after a failed attempt to find a buyer, notes this NPR article, this Fortune article, and this Wikipedia article.
 

Which stores no longer exist?

Many popular stores no longer exist, including major names like Toys "R" Us, Circuit City, Borders, Blockbuster, and Radio Shack, alongside clothing retailers such as The Limited, Wet Seal, and department stores like Mervyn's, Hudson's, and Filene's, with many failing due to online competition, bankruptcy, or changing consumer habits.
 

How many stores will Walgreens close in 2025?

Walgreens planned to close around 500 underperforming stores in its 2025 fiscal year, as part of a larger three-year plan to shutter 1,200 locations nationwide to cut costs and focus on core pharmacy services, with specific closures reported across many states like California, New Jersey, and Massachusetts throughout 2025. While a complete list wasn't released, targets aimed for 500 closures in the 2025 fiscal year (ending August 31, 2025), with some reports showing dozens shutting down monthly. 

Why are they closing Walgreens stores?

Walgreens is closing stores as part of a major cost-cutting and turnaround strategy, shutting down unprofitable locations to streamline operations amidst declining profits, increased competition (from Amazon, Walmart, Target), lower prescription reimbursement rates, rising operating costs, and shifts in consumer habits. The "Footprint Optimization Program" aims to close about 1,200 stores over three years, focusing on underperforming locations, those near other stores, and those struggling with theft. 

What stores are shutting down in 2025 in the USA?

Here are some of the larger retailers that closed their stores this year.

• Bargain Hunt. Bargain Hunt, a Nashville-based discount retailer, said in February that it would shutter all of its 92 stores in 10 states after declaring bankruptcy.
• Forever21. ...
• Joann Fabrics. ...
• Liberated Brands. ...
• Party City. ...
• Rite Aid. ...
• Sonder.

Why is CVS pulling out of Target?

CVS is pulling out of some Target stores as part of a strategy to realign its retail footprint, reduce store density, and adapt to changing consumer habits, focusing on future health needs and optimizing locations, not necessarily due to Target's issues but as part of CVS's broader transformation into a healthcare company. These closures, beginning in early 2024, affect select locations, with prescriptions transferring to nearby CVS pharmacies and affected staff offered roles elsewhere. 

Are Kohl's stores going out of business?

Kohl's announced real estate changes for 2025, including the closure of its San Bernardino E-commerce Fulfillment Center (EFC) in May when the lease on that facility expires, and the closure of 27 underperforming stores, by April 2025. The San Bernardino, Calif.

What business will be booming in 2025?

Booming businesses in 2025 center around technology (AI, Cybersecurity, E-commerce), healthcare (Telehealth, Mental Health, Home Care), renewable energy (Solar, Wind), and sustainable/experiential travel, with strong demand also for skilled trades and personalized digital services like digital marketing and <<a>>AI content creation. Key themes include automation, sustainability, and meeting the needs of an aging population and evolving consumer preferences. 

What fast food chain is closing in 2025?

In 2025, several fast-food and casual dining chains closed locations due to financial pressures, including Denny's, Wendy's, Noodles & Company, Red Robin, Jack in the Box, TGI Fridays, and some Mexican chains like Del Taco, with ongoing closures expected into 2026 as companies optimize portfolios, manage debt, or undergo restructuring, often affecting underperforming stores. 

Are malls coming back in 2025?

Yes, malls are experiencing a comeback in 2025, but it's a story of transformation, not a simple return, with thriving malls evolving into "experience hubs" offering dining, entertainment, wellness, and mixed-use spaces, while struggling "Class B/C" malls continue to face closures, making it a tale of two tiers. Data shows increased foot traffic and dwell times for successful malls, driven by consumer demand for social, experience-first retail, leading to a significant revival in many locations, according to Capital One Research.
 

Why are so many businesses closing in 2025?

It started with wildfires across the region, which destroyed thousands of Southern California homes, restaurants, bars and other businesses. Tariffs caused the price of some ingredients to soar, while rent and labor continued to increase. Immigration raids and lower tourism only exacerbated diminished sales.

What will retail look like in 2025?

The 2025 retail outlook points to steady but cautious growth, driven by resilient consumer spending despite inflation, low unemployment, and policy uncertainty, with forecasts around 2.7%-3.7% growth. Key trends include an accelerated focus on omnichannel experiences, increased deployment of AI for efficiency, strengthening loyalty programs, and a continued shift towards experiential retail, value, and luxury segments, while supply chains build resilience. Retailers must balance digital innovation with physical store strategies, with e-commerce remaining a dominant force.