The US retail landscape is preparing itself for a historic year of store closures in 2025. A total of 15,000 stores are set to shut down this year, one of the biggest contractions in recent times, says Coresight Research. This disturbing trend comes on the heels of the 7,325 closures in 2024, a record high since 2020. Retail stores like Macy’s, Joann, Walgreens, and Kohl’s are some that have been hit, with economic stresses, shifting consumer behavior, and disruptions to the industry causing tough choices. In this article, we examine the Major Stores Closing in the USA and what caused them to decline.
Joann: The End of an Era
One of the biggest surprises in the world of retail was when Joann Fabrics and Crafts announced it was shutting down. The 80-year-old brand that has catered to crafters will close all 800 stores in 49 states. The company attributed its failure to financial struggles and a lack of a good buyer. Closure of the Joann stores is both economic and personal disappointment to frequent long-time buyers who relied upon it for craft project supplies, fabric, and sewing supplies… Read more
Macy’s: Streamlining to Thrive
The legendary American department store name Macy’s is experiencing a wholesale scale-down. Under its Bold New Chapter strategy, the company is shutting down 66 stores in 2025 and 150 underperforming stores by 2026. These are meant to focus on 350 high-priority locations and improve profitability. Among the stores to be closed are Brooklyn, NY; Boynton Beach, FL; and Philadelphia City Center. The Major Retailers Closing in USA now also comprise a growing number of previously successful Macy’s stores… Read more
Walgreens and CVS: The Shake-Up in the Pharmacies
The pharmacy industry is similarly experiencing a radical revolution. Walgreens announced that it would shut down 1,200 stores in the U.S. within the next three years, with 500 closures happening in fiscal year 2025. CVS has also been cutting back on its stores under a store reduction strategy initiated in 2021, closing 900 stores within three years. CVS will keep on shutting low-traffic stores and redundant store coverage in 2025. The wave of Major Stores Closing in the USA has now reached even essential services like pharmacy chains.
Liberated Brands: Surf and Skate Retail Collapse
Another large casualty is Liberated Brands, the proprietor of cool surf and skate companies Volcom, Quiksilver, Billabong, Spyder, RVCA, Roxy, and Honolua. It sought Chapter 11 bankruptcy protection in February 2025 due to financial issues owing to competition from fast fashion and inflationary pressure. As a result, all its American stores will close down this year. The bankruptcy reflects the impact of fast-evolving fashion and the dominance of fast fashion chains over traditional brands.
Neiman Marcus: A Historic Closure
The luxury department store business is not exempt from store closures. Neiman Marcus, a fixture in upscale fashion, will shutter its historic downtown Dallas flagship store. The store, a century-old institution, is closing down after the landlord ended its lease. Although some staff will be allowed to relocate to other stores, this is a major loss for the Neiman Marcus heritage. Part of the Major Stores Closing in the USA, this closure is the difficulty even luxury brands face in today’s market.
Kohl’s: Strategic Downsizing
Kohl’s, another retailing giant in America, also announced plans to close 27 stores in 2025. It (Kohl’s) is closing stores in California, New Jersey, Pennsylvania, Texas, and other places in a broader effort to consolidate. Kohl’s is also shuttering a large e-commerce fulfillment center in San Bernardino, California, further showing shifts in the way the retailer is handling online compared to offline retail. Adding Kohl’s to the Major Stores Closing in USA list is an indication of mounting troubles for brick-and-mortar department stores… Read more
Party City: The Party’s Over
What was once the go-to spot for party supplies, Party City announced in December 2024 that it would shutter all 700 of its locations by February 28, 2025. Inflation and changing consumer shopping habits were referenced as at the heart of its collapse. As more people reduced spending on party supplies and decorations, Party City could no longer sustain its retail business model. Another glaring illustration of Major Stores Closing in the USA due to shifting consumer behavior is the closure of Party City.
The Bigger Picture: Why Are So Many Stores Closing?
Major Stores Closing in the USA is not an isolated phenomenon but one part of a larger economic picture. Several factors have contributed to these en masse closings, some of which are:
- E-commerce Dominance: Retail online has migrated further and further from bricks-and-mortar retail, forcing stores to cut back or shut down entirely.
- Growing Operational Costs: Inflation, high rents, and supply chain issues have made it tough for stores to remain profitable.
- Changing Consumer Patterns: Consumers are fascinated by experiences over stuff, reducing traffic to physical retail stores.
Also read: Is Forever 21 Closing All Stores In The US? Know All The Details
- Fast Fashion Competition: Companies that are slow to adapt to fast fashion trends cannot compete with fast fashion retail giants.
- Post-Pandemic Changes: The COVID-19 pandemic irreversibly changed consumer shopping patterns, which quickly hastened the demise of physical retail stores.
Conclusion:
The Major Stores Closing in the USA are defining the future of shopping, and only time will tell what brands will make it through and prosper in this constantly changing industry.
