Walking through a once-bustling mall and seeing “Store Closing” signs everywhere can feel like a gut punch—it’s not just empty shelves, it’s a sign of deeper shifts in how we live and spend.
In 2025, the U.S. is on track for a record wave of retail closures, with experts projecting around 15,000 stores shuttering their doors, more than double the 7,325 that closed last year.
This isn’t some sudden crisis; it’s a window into broader economic pressures, from sticky inflation to changing shopping habits.
Let’s unpack what these closures tell us about the health of the American economy—and what it means for jobs, communities, and the way we shop.
The Scale of the Closures: A Snapshot of 2025
The numbers are stark.
As of mid-year, over 2,500 stores had already closed or were slated to, with Coresight Research tracking announcements that point to a full-year total of about 15,000.
That’s roughly 123.7 million square feet of retail space going dark in the first half alone, outpacing new openings by nearly twofold.
Major players are leading the charge: Party City is winding down all 700 locations after filing for bankruptcy in late 2024, citing inflation and reduced spending on non-essentials.
Big Lots, the discount chain, is closing around 480 stores as part of a post-bankruptcy restructuring, while Joann Fabrics announced the end of its 800-store chain in February, blaming debt and supply chain woes.
Pharmacy giants aren’t immune either.
Walgreens plans to shutter 450 U.S. locations by year’s end as part of a three-year goal to close 1,200, focusing on underperformers in overlapping markets.
CVS is continuing its optimization, with more closures targeting low-traffic spots.
Department stores like Macy’s (51 closures) and Kohl’s (27) are trimming underperforming outlets, and even JCPenney is letting go of eight more by mid-year.
Other names on the list include 7-Eleven (148), Foot Locker (part of 400+ through 2026), as earlier reported by FrankNez Media, and GameStop (a “significant number” after hundreds in 2024).
These aren’t isolated hits; they’re a symptom of a retail sector under strain, revealing cracks in consumer confidence and spending patterns.
E-Commerce’s Grip: The Rise of Online Shopping
One of the clearest signals from these closures is the relentless march of e-commerce.
Shoppers are flocking to platforms like Amazon, Shein, and Temu for convenience and rock-bottom prices—Shein and Temu alone command a combined $100 billion in business, pressuring traditional retailers.
“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,” says Deborah Weinswig, CEO of Coresight Research.
The pandemic accelerated this shift: 29% of U.S. consumers say they’ll never return to in-store shopping, per a 2020 survey echoed in ongoing trends.
Brick-and-mortar chains that haven’t pivoted fast enough—like those slow to integrate AI for inventory or personalized online-offline experiences—are paying the price.
Closures in apparel (Forever 21 winding down all U.S. stores) and crafts (Joann’s full exit) highlight how fast fashion and digital alternatives are reshaping categories once dominated by physical retail.
Inflation’s Lingering Shadow: Squeezed Wallets and Cautious Spending
Even as headline inflation cools to around 2.5% in August 2025, its scars remain.
Everyday Americans are still feeling the pinch from higher costs in groceries, housing, and energy, leading to cutbacks on discretionary buys.
Retail sales growth has slowed, with consumers prioritizing essentials over party supplies or home decor—hence Party City’s collapse and Big Lots’ struggles.
A 2024 Federal Reserve survey showed 60% of households felt financially worse off post-inflation spikes, and that sentiment lingers into 2025.
This caution is a red flag for the broader economy: retail accounts for about 16 million jobs, and closures are fueling a 274% spike in sector layoffs this year, nearing 76,000 cuts.
It’s not just workers; suppliers and local economies suffer too.
The “retail apocalypse,” as it’s been called since 2017, creates a domino effect—Hasbro, for instance, blamed Toys “R” Us closures for revenue hits and layoffs back in 2018, a pattern repeating now with smaller chains feeding into larger supply chain strains.
Broader Economic Signals: Inequality, Job Shifts, and Policy Ripples
Store closures shine a light on deeper divides.
Low-wage retail jobs are vanishing fastest in discount and pharmacy sectors, widening inequality—low-income workers, who spend a higher share on basics, are hit hardest when local options dwindle.
Communities reliant on malls for employment see “pharmacy deserts” emerge, with over 7,000 closures since 2019 creating access gaps in rural and urban areas alike.
On the flip side, it’s not all doom.
Openings are steady at about 5,800 stores, led by discounters like Aldi (170 new) and off-price spots like Burlington (104), signaling resilience in value-driven retail.
Private equity plays a role too—firms like Nexus Capital Management acquired Big Lots but still pursued closures for efficiency, underscoring how financial engineering can accelerate downsizing.
Economists like those at the Economic Policy Institute note this polarization: winners like online giants thrive, while laggards consolidate.
Politically, it’s a tinderbox.
Rising unemployment in retail (now the second-highest layoff sector after government) fuels debates over trade policies, minimum wages, and antitrust scrutiny of e-commerce behemoths.
As one analyst put it, “There is not enough growth in the retail market for every player to do well, which is why we are seeing polarized results.”
What It Means for the Future
These closures aren’t the end of retail—they’re a painful evolution.
Survivors are betting on “phygital” experiences: immersive in-stores with tech like AR try-ons or community events, as seen in Eataly’s model of market-meets-cultural-hub.
For the economy, it’s a reminder that growth is uneven; while GDP chugs along at 3.2% globally, U.S. consumers are thriftier, hinting at a “soft landing” that feels bumpy for many.
If you’re in retail or just watching your local strip mall change, keep an eye on adaptation.
Chains embracing data for smarter stocking or hybrid models are the ones opening doors, not closing them.
In the end, store closures reveal an economy in transition: innovative, unequal, and ever more digital.
For deeper dives, check out Coresight Research for closure trackers or the Bureau of Labor Statistics for employment data.
Luckily for you, FrankNez Media publishes the latest in U.S. economics and business news to keep you informed.
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