A sharp rise in retail store closures across the US is projected for 2025, according to a new report from Coresight Research.
The research predicts around 15,000 store closures this year following a challenging 2024, which saw 7,325 closures, the highest number since 2020.
However, store openings are expected to remain stable, with approximately 5,800 new stores opening across America this year.
In 2024, there were 5,970 new store openings, the highest number since Coresight began tracking this data in 2012. However, closures outpaced openings, leading to a net loss of 1,355 stores.
“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,” said Deborah Weinswig, CEO of Coresight Research.
“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.”
Major US retailers have announced 29.6% fewer openings and 334.3% more closures when compared to the year-ago period.
Closures announced by retailers including Party City, Big Lots, Kohl’s and Macy’s in late 2024 and early 2025 are driving the elevated closure numbers early in the year, Coresight said.
The report noted that CVS, Family Dollar and Big Lots saw the biggest closures in 2024.
“Not only do (consumers) 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. We have seen Shein and Temu capture market share as consumers choose to shop online to save time, money, and avoid frustration,” Weinswig added.
“Retailers need to embrace technologies like artificial intelligence to deliver a better customer experience and to optimize pricing to remain relevant and avoid ongoing closures.”
Coresight sees major store closure programs falling into three broad categories.
These include liquidations that result in the closure of all stores, distressed retailers closing large swathes of stores, often as part of Chapter 11 bankruptcy restructuring, and legacy retailers reshaping their store footprints in response to changes in the retail landscape.
Click here to sign up to Retail Gazette‘s free daily email newsletter
