Retail Closures & Openings

Furniture World News Desk on 2/17/2025

Twice as many retail stores will close in the U.S. this year than were shuttered last year, and far fewer stores will open than will close in 2025, according to Coresight Research.

Retailers will close up to 15,000 stores this year and open fewer than 6,000 in 2025. Specifically, the rate of store closures will than double the 7,325 closures in 2024 and break the closure record set in 2020 during the pandemic. Unpredictable retail bankruptcies typically account for the largest number of closures, and last year, the number of bankruptcies doubled over those in 2023, up from 25 to 51 in 2024.

“Inflation and a growing preference among consumers to shop online to find the cheapest deals took a toll on brick-and-mortar retailers in 2024. We continue to see a trend of consumers opting for the path of least resistance. Not only do they want the best prices, but they also have no patience for stores that are constantly disorganized, out of stock, and that deliver poor customer service,” said Coresight CEO Deborah Weinswig in a statement.

Year-to-date retailers have announced three-times more store closures this year compared to the same time last year and about 30% fewer openings. Among the 2,000 closures so far this year include bankrupt Party City (738 closing) and Big Lots (601) leading the field, followed by Walgreens Boots Alliance (333), 7-Eleven (148), Macy’s (51) and Kohl’s (27).

On the plus side, retailers are projected to open only 5,800 stores, slightly less than the 5,970 opened last year, but representing a widening gap favoring closings over openings. To date, some 1,000 store openings have been announced, topped by Aldi (170 new stores), followed by JD Sports (124), Burlington Stores (104), jewelry retailer Pandora (61), bookstore chain Barnes & Noble (60) and Dollar General (60).

Discounters Offer A Hedge Against Inflation

Inflation-weary consumers are shifting their buying habits. Discount outlets are expected to post the highest number of new stores this year, such as Dollar Tree, which is pivoting from its Family Dollar banner after closing over 700 FD stores last year, and Dollar General, that has already announced 60 openings. Ironically, in 2024, discount stores led in both store closures, i.e. bankruptcies of 99 Centers Only Stores and Big Lots, as well as in store openings.

Big-box discounters will expand too. Walmart plans to add 30 stores this year and Costco will expand by 14. In the grocery sector, Aldi continues to lead in openings, adding 170 stores this year after 121 openings last year. Grocery Outlet followed with 55 openings last year.

More Online Shopping Means More Closed Stores

Shoppers continue to gravitate toward the convenience and price advantage of online shopping. In 2019, non-store retail represented 21% of retail, excluding motor vehicles and motor parts, gasoline stations and food service. Now it stands at 29%, having advanced from 28% last year, according to the Census Bureau.

Thus, many past and planned closures are adjustments or right-sizing of retailers’ physical footprints. Coresight also calls out increased e-commerce competition from Chinese-based off-price online platforms Shein and Temu as they expand into non-apparel offerings and capture sales from mass merchants and other category retailers.

Pharmacy Deserts

CVS Health with 586 closures accounted for the second largest number of closings last year. In addition, Rite Aid shuttered 408 stores, and Walgreens Boots Alliance closed 259, leading Coresight to warn of  “pharmacy deserts” emerging in parts of the country to the benefit of mass merchants and grocery chains with pharmacy departments.

Home Retail Footprint Continues To Shrink

So far this year, no home and office retailers have announced closures, but that may be because so many closed over the last two years: 1,679 in 2023 and 1,307 in 2024.

Bankrupt furniture retailer Conn’s had the third highest number of closings last year at 553, and bankruptcies also led to American Freight closing 353 and LL Flooring, now rebranded as Lumber Liquidators, closing 213 stores.

However, a handful of home retailers have announced openings in 2025, including five by Beyond (the old Bed Bath and Beyond brand), three for both Febal Casa and Hästens, two Perigold stores and one Home Depot.

Shifting Landscape In Apparel

The apparel, footwear and accessories sector experiences significant churn year after year. It accounted for the third largest number of closures last year (1,383) after discount stores and home retailers, and added the second-largest number of openings, totaling 1,478, mainly in the off-price sector.

In 2024, bankruptcies of Rue21 and Express led to 543 and 105 store closures, respectively. Foot Locker also shuttered 118 stores last year, and it has announced eight more planned closures this year.

Complicating Retailers’ Outlook

The social-media fueled “No-Buy” or “Underconsumption” trend is gaining ground as consumers seek to take back control of their spending and pay off debt. The concept is to strike certain purchases off one’s purchase list, such as swapping a morning Starbucks coffee with a home brew, do-it-yourself whenever possible, buy only what is needed, and if a purchase must be made, to try to buy it second hand. People can see and feel the benefits almost immediately, the Wall Street Journal reports.

Through the third quarter of 2024, the Federal Reserve Bank of New York reported household debt is at an all-time $17.94 trillion high, including mortgage debt at $12.79 trillion, credit card debt of $1.17 trillion and auto loans at $1.64 trillion.

Retail In Constant State Of Flux

GlobalData’s Neil Saunders said it’s too soon to call it another “retail apocalypse.” The large number of store closures expected in 2025 and that happened last year are primarily a survival of the fittest phenomenon. In addition, some retailers have brick-and-mortar “dead wood” that needs clearing out.

“This is a healthy thing, and it does not follow that all of retail is in a bad way. At the end of this process the vast majority of sales will still be made through physical stores. I see this as an adjustment rather than some kind of calamity,” he said.

About Pam Danziger
Pamela N. Danziger is an internationally recognized expert specializing in consumer insights for marketers targeting the affluent consumer segment. She is president of Unity Marketing, a boutique marketing consulting firm she founded in 1992 where she leads with research to provide brands with actionable insights into the minds of their most profitable customers.

She is also a founding partner in Retail Rescue, a firm that provides retailers with advice, mentoring and support in Marketing, Management, Merchandising, Operations, Service and Selling.

A prolific writer, she is the author of eight books including Shops that POP! 7 Steps to Extraordinary Retail Success, written about and for independent retailers. She is a contributor to The Robin Report and Forbes.com. Pam is frequently called on to share new insights with audiences and business leaders all over the world. Contact her at pam@unitymarketingonline.com.