It’s no secret that 2024 was a tough year for many retailers. From home goods stores like LL Flooring, to pharmacy chains like Walgreens, to automotive parts providers like Advance Auto Parts, numerous retailers announced store closures last year.
Yet as bad as 2024 was when it came to retailer closures, 2025 is expected to be much, much worse, according to a report out from Coresight Research. How bad, you ask? Last year saw the most U.S. retail store closures—7,325 of them—since the first year of the pandemic. In 2025, the number of closures is expected to double.
Retail store closures could reach 15,000 in 2025
According to a January 22 report from Coresight Research that tracks the openings and closings of U.S. retail stores in 2024 and 2025, this year could see as many as 15,000 U.S. retail locations close.
In the first 10 days of the new year, retail store closures announcements have already hit almost two thousand, at 1,925 stores announced to be closing. Nearly 30 retailers have announced store closures for 2025. Many of those, including Nordstrom, Kohl’s, Anthropologie, and Best Buy, have announced just one store closure, and others, including Foot Locker and Joann, fewer than 10.
But five retail giants have announced dozens or hundreds of closures, which account for a majority of the 1,925 announced closures in 2025. Those retailers include:
- Party City: 738 closures
- Big Lots: 601 closures
- Walgreens Boots Alliance: 333 closures
- 7-Eleven (Seven & i Holdings Co., Ltd.): 148 closures
- Macy’s: 51 closures
The report’s total 15,000 expected closures represents a 50% increase from the 10,000 retail store closures experienced in 2020, when the pandemic wreaked havoc on retail foot traffic as worried consumers opted to shift their spending to online retailers.
2024 was the worst year for retail store closures since the pandemic
While Coresight’s 2025 numbers are estimates, firm figures are in for the calendar year 2024. It was a year that saw the highest number of U.S. retail store closures since the pandemic.
In total, in 2024, major retailers closed 7,325 locations across the country, reducing their retail footprint by a staggering 120 million square feet.
In 2024, discount store retailers were the overwhelming contributor to U.S. retail store closures, accounting for 23.9% of all store closures. Three retailers accounted for the majority of that slice of the pie, including Family Dollar at 718 stores closed, Big Lots at 517 stores closed, and 99 Cents Only Stores at 371 stores closed.
Overall, the list of top U.S. retailers with closures in 2024 includes:
- Family Dollar: 718 closures
- CVS Health: 586 closures
- Conn’s: 553 closures
- rue21: 543 closures
- Big Lots: 517 closures
Other major retail chains also saw a significant number of store closures in 2024, including 7-Eleven (492), Rite Aid (408), American Freight (353), and Walgreens Boots Alliance (259).
Shein and Temu represent an increasing threat to U.S. retailers
So, what’s behind the high number of store closures in 2024 and expected closures in 2025? There are several factors, according to Coresight Research CEO Deborah Weinswig.
“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,” Weinswig said. “Last year we saw the highest number of closures since the pandemic. Retailers that were unable to adapt supply chains and implement technology to cut costs were significantly impacted, and 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.”
Yet it’s not just inflation-weary consumers looking for the best deals for their discretionary spending, or a displeasure with the brick-and-mortar shopping experience. Coresight says that retailers are also experiencing pressure from new online entrants—not just e-commerce giant Amazon.
The firm “sees Shein and Temu (combined) as a $100+ billion juggernaut pressuring incumbent retailers and marketplaces across a number of global markets, including the US,” the report states. “We expect general-merchandise retailers across a wide range of categories, from automotive to home and pet, to be threatened by the further growth of Temu and the scaling of Shein’s non-clothing offering.”
It should be noted, however, that while 2024 saw the most store closures since the pandemic, it also saw a number of openings. In 2024, major U.S. retailers opened 5,970 locations, dropping the net loss of stores to 1,355 locations.
The bad news for 2025 is that store closures are not only expected to double, but store openings are expected to come in lower than they did in 2024. For 2025, Coresight Research expects approximately 5,800 major retail locations to open. That’s fewer than the number of locations that opened last year, and leaves an expected 2025 net loss of approximately 9,200 retail locations.
That being said, Coresight expects a 3.3% rise in retail sales in America for 2025 (excluding automobiles and gasoline). However, that growth pales in comparison to online retail sales, which are expected to grow at almost triple that rate at 8.3%.
“Additionally,” the report notes, “we expect competition from e-commerce players to be Shein and Temu, as well as alternative channels such as TikTok (should it continue to operate in the US) and social commerce more widely.”
