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Recent findings reveal that the year 2024 saw an unprecedented wave of store closures in the U.S., marking the highest level since the onset of the pandemic. As consumer spending patterns shift, it is evident that a handful of dominant retailers are reaping the benefits, while numerous others face the prospect of shutting their doors.
Coresight Research provides a staggering analysis, indicating that major companies like Party City and Macy’s closed a total of 7,325 retail locations last year, reflecting the most significant increase since nearly 10,000 stores closed in 2020 during the early stages of the pandemic.
As 2025 begins, the trend is showing no signs of abating. By early January, 1,925 store closures had already been announced, with Party City, Big Lots, Walgreens Boots Alliance, 7-Eleven, and Macy’s leading the pack. The overall forecast for this year anticipates roughly 15,000 additional closures as many traditional brands either file for bankruptcy or undergo drastic downsizing measures.
The data underscores a widening gap between successful retailers, which are gaining market share—such as Amazon, Costco, and Walmart—and those struggling to survive. The shift towards these major players highlights a consumer preference for value and convenience, while many smaller or specialized retailers face significant challenges.
The increase in bankruptcies has been a key factor behind the dramatic store closures. In 2024, there were 51 retail bankruptcies, a marked rise from 25 in 2023. Notably, many closures for entities like Party City are concentrated in the early part of 2025.
Despite the concerning trend of store closures, overall consumer spending remains robust. According to the National Retail Federation, holiday sales surged 4% year-on-year, amounting to nearly $994.1 billion from November through December, a figure that aligns closely with spending trends observed prior to the pandemic.
Interestingly, employment figures in the retail sector did not reflect the substantial number of store closures. The Bureau of Labor Statistics noted that retail trade jobs “changed little” last year, following a monthly addition of approximately 10,000 jobs throughout 2023.
Specialty retailers, particularly, have been hard-hit. The discount retailer Big Lots announced its intention to close all its locations after a failed sale, while Fabrics and craft supplier Joann faced its second bankruptcy filing within a year. In the broader landscape, prominent closures came from chains such as Family Dollar, CVS Health, and rue21, many of which also faced bankruptcy challenges.
According to John Mercer from Coresight Research, the closures can largely be attributed to the competitive landscape rather than a decrease in consumer demand. He identifies three primary categories of retailers closing stores: those shutting down entirely as part of liquidation plans, those scaling back following Chapter 11 filings, and those adapting to shifting consumer behaviors.
For example, Macy’s is engaged in a strategy to close approximately 150 of its stores nationwide by early 2027 while simultaneously launching smaller, off-mall versions of its popular brand outlets. As a result, the company is shifting its focus to better-performing stores and brands such as Bloomingdale’s and Bluemercury.
Emerging competitors are also carving out space in the market, with Chinese e-commerce firms Shein and Temu reportedly generating a combined sales figure of around $100 billion last year, largely from international sales. The shift in consumer purchasing habits towards platforms like Temu for various goods has posed additional challenges for traditional retailers, contributing to financial strains and bankruptcy situations.
Factors beyond sales declines have also influenced the trend of store closures. David Silverman, a retail analyst at Fitch Ratings, notes that the closure of major anchors in malls can prompt smaller retailers to follow suit. Moreover, the aftermath of the pandemic has altered population dynamics and store traffic patterns, prompting a reconsideration of retail locations across the board.
Silverman anticipates that the pattern of more store closures than openings will persist as the retail landscape evolves, with larger retailers capturing a more significant market share through online sales and streamlined operations.
As the retail sector braces for further upheaval, updates concerning the performance of various retailers will emerge soon, with many expected to release their holiday-quarter results by mid-February. Ahead of these results, companies such as Kohl’s have already announced plans to close underperforming stores, further underscoring the precarious state of the retail industry.
In a slightly positive turn, the retail landscape also witnessed a spike in store openings, reaching a total of 5,970—a record high since Coresight began tracking this data in 2012. For 2025, projections indicate a steady number of new openings, estimated at approximately 5,800 stores, led predominantly by retail brands such as Aldi, JD Sports, Burlington Stores, Pandora, and Barnes & Noble.
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