Store closures in the U.S. reached a peak last year since the onset of the pandemic, with more closures expected this year as consumer spending shifts towards a few key players in the industry, as per Coresight Research analysis.
In 2024, major retailers like Party City and Macy’s shut down 7,325 stores, marking the largest increase since nearly 10,000 closures in 2020 during the start of the Covid pandemic. The trend of closures has continued this year, with 1,925 store closures announced by retailers as of January 10, 2025. The top five retailers with the most closures this year are Party City, Big Lots, Walgreens Boots Alliance, 7-Eleven, and Macy’s.
Coresight Research projects that around 15,000 stores will close this year as some established brands downsize, file for bankruptcy, or close locations. The divide between retailers gaining market share like Amazon, Costco, and Walmart, and those struggling to stay afloat is evident. Bankruptcies have contributed to the high number of closures, with 51 retail bankruptcies in 2024 compared to 25 in 2023.
Despite the closures, consumer spending has remained robust, with a larger portion going to fewer retailers. The National Retail Federation reported a 4% increase in holiday sales to $994.1 billion from November 1 to December 31, excluding auto dealers, gas stations, and restaurants, similar to pre-pandemic levels.
The retail industry’s employment figures remained stable despite closures, with little change reported in 2024. Specialty retailers faced challenges, with stores like The Container Store, Big Lots, and Joann filing for bankruptcy protection or closing stores.
The shift in consumer preferences and competitive threats have led to store closures. Retailers like Macy’s are adapting by closing some stores and opening smaller off-mall locations. Newcomers like Chinese e-commerce companies Shein and Temu are also impacting legacy retailers’ sales.
Analysts predict more closures than openings in the U.S. as online sales drive growth and larger companies dominate the market. Investors await updates on retailers’ performance, with many expected to announce holiday-quarter results in mid-February. Despite closures, store openings accelerated in 2024, with an estimated 5,800 stores expected to open in 2025.
