The number of store closures in the United States is projected to more than double in 2025, with an estimated 15,000 retail locations expected to shut down, according to a report by Coresight Research. This figure is a significant increase from the 7,325 closures recorded last year. The decline in new store openings is also anticipated, with a drop from 5,970 to 5,800 expected this year.
The retail sector continues to face challenges, including the rise of online shopping and economic pressures. Many well-known retailers, such as Kohl’s, Big Lots, and Macy’s, have already announced plans to close stores or consolidate operations. The closures are driven by factors such as bankruptcies, liquidations, and the need to leave unprofitable locations.
Brandon Svec, head of U.S. retail analytics at CoStar Group, noted that the retail environment is undergoing significant disruption. He mentioned that some sectors, like hobbies and crafts and middle-market apparel, are particularly vulnerable. The shift toward e-commerce, with companies like Shein and Temu gaining popularity, further intensifies the competition for brick-and-mortar stores.
Despite the gloomy outlook, some experts believe that physical stores will continue to play a crucial role in retail. R.J. Hottovy, head of analytical research at Placer.ai, explained that not all closures indicate trouble; some are part of strategic adjustments. Value retailers, such as Aldi and Dollar General, are expected to thrive and continue expanding their store footprints.
The retail landscape is also affected by economic factors, including high interest rates and President Donald Trump‘s tariff policies, which may lead to price increases. Retailers are encouraged to adapt by optimizing operations, building customer loyalty, and integrating digital components to remain competitive.
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