The retail landscape continues to shift with roughly 6,000 store closings announced in the first half of this year or about 123.7 million square feet of vacated retail space, according to Coresight Research.
The retail analysis firm said retail closures have outpaced store openings nearly twofold, with 3,960 new store locations announced occupying 74.5 million of retail square feet in the first six months of this year.
Coresight predicted roughly 15,000 retail locations would shutter for the full year, with around 5,800 new store openings, and the industry is on pace to come close to that prediction as of the start of July.
Coresight now reports that approximately 5,800 new retail stores will open in 2025, leaving an expected loss of about 9,200 store locations by the end of the year, with annual sales rising 3.3% in the U.S. and online sales soaring 8.3% from a year ago.
Rising debt, higher interest rates, and increased inflationary costs continue to hurt retailers in the post-pandemic era. This year, tariffs announced and planned by the Trump administration are adding to the woes with more bankruptcies and private equity takeovers.
In June, Plano, Texas-based home goods retailer At Home and pharmacy chain Rite Aid each filed for bankruptcy protection with store closures also announced as part of their reorganization strategies. At Home, privately owned, said it plans to shutter 27 of its stores this year, citing higher prices from tariffs. Rite Aid will shutter 489 stores accounting for an estimated 6.7 million square footage of retail space.
Coresight CEO Deborah Weinswig said the latest retail casualties pushed the retail closure square footage above 120 million square feet. Weinswig said this is not the end of physical retail but more of a right-sizing given the increase in online retail over the past few years.
She said the U.S. retail sector is in a period of high real estate churn amid structural shifts in the industry as more retail business gravitates online. Coresight reports as of July 4 that U.S. store closures were up by two-thirds compared to a year ago, while store openings were flat against the same period.
Retail bankruptcies total 15 so far this year, which is down from the 26 reported in the year-ago period. Coresight reports that bankruptcies have driven closures of five of the 10 retailers closing the most stores in the first half of 2025.
Joann, Party City, Big Lots, Rite Aid and Forever 21 are the five retailers shuttering the most stores this year, due to bankruptcy. Joann closed 800 stores as the company dissolved under its bankruptcy filing in early 2025. Big Lots announced plans to close 340 locations in its bankruptcy proceedings and failed sale to Nexus Capital. The discount closeout chain later announced that around 200 locations were being acquired by Variety Wholesalers and would reopen under the Ollie’s banner beginning in April.
Party City was another large casualty this year, following its bankruptcy proceedings in March, with approximately 800 stores being shuttered. In May, Rite Aid announced that about 1,000 stores would close as it winds down its business operations following two bankruptcies since 2023. Teen apparel retailer Forever 21 announced the closure of all 354 leased locations this year following its March Chapter 11 bankruptcy filing. The mall retailer cited competitive pressures and shifting shopping habits away from malls as the primary reasons for its financial demise.
Kohl’s said it plans to shutter 27 of its under-performing locations as it restructures under new corporate leadership. Kroger will shutter 60 of its underperforming stores in Georgia, Illinois, Texas and Virginia starting in June.
Macy’s plans to close 65 stores this year, while convenience giant 7-Eleven plans to shutter 444 of its 13,000 North American stores this year. Walgreens plans to close 2,150 locations between 2025 and 2027, roughly 25% of its U.S. stores. Advance Auto Parts announced plans to shutter 523 of its corporate-owned stores and two distribution centers by the end of 2026.
Women’s apparel retailer Torrid said it will close 189 stores before the end of the year. Torrid CEO Lisa Harper said 70% of the retailer’s demand comes from online sales, and the company is transforming to a more digitally-led business requiring a smaller store footprint.
Earlier this year, Liberated Brands, behind Volcom, Quicksilver, Spyder and Roxy filed Chapter 11 bankruptcy and the closures of all of its 350 corporate-owned stores, blaming fast fashion competition, inflation and high interest rates for its financial struggles.
Dollar General has announced plans to close 96 of its stores and 45 of the PopShelf locations. The dollar store chain said despite the closures of underperforming stores it still planned to open 575 new stores this year and remodel more than 4,000 locations.
Many of the retail store closures are a result of declining store traffic as more consumers respond to inflation by reducing spending. There also are more consumers turning to online shopping especially for apparel, accessories and household items. The winner is not merely Amazon but increased competition from Temu and Shein marketplaces and social commerce outlets like TikTok.
Coresight said that as Temu and Shein continue to ramp up general merchandise categories like automotive, home, and pet, general merchandise retailers could feel pinched. Weinswig said a growing preference among consumers to shop online to find the cheapest deals took a toll on brick-and-mortar retailers in 2024. She said retailers unable to adapt their supply chains and implement technology to cut costs were significantly impacted.
“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,” she added.
Coresight said Shein and Temu wield a combined $100 billion business, pressuring retailers and marketplaces across a number of global markets, including the U.S., for the balance of 2025.
Editor’s note: The Supply Side section of Talk Business & Politics focuses on the companies, organizations, issues and individuals engaged in providing products and services to retailers. The Supply Side is managed by Talk Business & Politics, and is sponsored by HRG.