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Why are stores closing in 2025?

Store closures in 2025 are driven by a combination of high inflation, reduced consumer discretionary spending, and shifting habits toward e-commerce, causing over 8,100 closures by late 2025. Major retailers like Big Lots, Walgreens, and Macy's are closing locations due to bankruptcy, rising costs, and the need to shed underperforming, high-rent, or outdated physical stores. Business Insider +3
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What stores are getting shut down in 2025?

Here are the retailers who announced store closures in 2025
  • Kohl's. ...
  • Big Lots. ...
  • Macy's. ...
  • Dollar General. ...
  • Joann. ...
  • JCPenney. ...
  • Hooters. ...
  • Red Robin.
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Why are so many stores shutting down?

So many stores are closing due to the massive shift to online shopping, rising operational costs (inflation, rent, labor), increased competition (especially from e-commerce giants like Amazon, Temu), and strategic missteps like failing to adapt to new consumer expectations for personalized, experiential shopping, compounded by a pandemic-era spending slowdown and high interest rates. Retailers are struggling to balance lower demand for non-essential goods with increased expenses, leading to widespread closures as they downsize or exit unprofitable locations, with some closures also driven by increased theft and tariffs. 
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Why are so many companies going out of business in 2025?

More than 700 US companies went bankrupt in 2025 — a 14% jump from last year. Corporate bankruptcies are reaching levels not seen since the Great Recession — with inflation, high interest rates and punishing tariffs pushing hundreds of companies over the edge in 2025, according to a new report.
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What stores are not going to make it to 2026?

13 Retailers That Are Closing Stores in 2026 (Including Grocery...
  • Ikea. ...
  • Saks Fifth Avenue and Saks Off 5th. ...
  • Neiman Marcus and Neiman Marcus Last Call. ...
  • Francesca's. ...
  • Eddie Bauer. ...
  • Amazon Fresh and Amazon Go. ...
  • GameStop. ...
  • Macy's.
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18,000 Stores Closing In 2025 | This Is The End Of Retail

What retailer is closing all 700 stores?

The retailer that closed all of its roughly 700 stores is Party City, which ceased operations by the end of February 2025 after filing for bankruptcy for the second time, citing inflation and tough economic conditions as reasons for its failure. 
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What brand is leaving Target in 2026?

Ulta Beauty and Target just announced they will end their five-year shop-in-shop partnership in August 2026. Ulta Beauty and Target just announced they won't renew their five-year partnership after reaching 600 Ulta-Target shop-in-shops, falling short of their original goal of 800 locations.
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Why are so many malls closing down?

Many malls are closing due to the rise of e-commerce (like Amazon), shifting consumer habits (less physical shopping, more online/experiences), the decline of major anchor stores (Sears, Macy's), high operating costs, and an oversupply of malls built in the 1980s that can't compete with modern entertainment or discount options. Consumers now seek experiences, not just commodities, leading struggling malls to either shutter or try repurposing spaces for non-retail uses.
 
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What big stores are going out of business?

Major retailers closing or reducing stores in 2026 include GameStop, Macy's, Walgreens, Saks Global, Value City Furniture, Carter's, and American Eagle, with closures often due to restructuring, bankruptcy, or shifting consumer habits, affecting locations in malls and high streets across the U.S.
 
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Will house prices go down in 2025?

House prices are expected to continue rising in 2025, but at a much slower pace, with some markets potentially seeing dips while the national trend remains modest growth or stabilization, driven by persistent high rates, low inventory, and affordability challenges, though a major crash is unlikely. Some experts forecast a national average increase of 3-4%, while others predict price stagnation or small declines in certain overbuilt areas, especially as affordability pushes buyers out and inventory slowly improves. 
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Which clothing brands are closing?

Several clothing brands are closing stores or shutting down, driven by shifts to online shopping, fast-fashion competition, and changing consumer demands for sustainability, with recent examples including Gorewear, Joann Fabrics, surf brands under Liberated Brands (Quiksilver, Billabong, Volcom), and ongoing closures at major retailers like Inditex (Zara) and American Eagle as they restructure. This trend affects both large chains and specialty retailers, forcing many to adapt or disappear, with Forever 21, Benetton, and Fossil also making significant cuts.
 
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Are Kohl's stores closing in 2025?

Yes, Kohl's closed 27 "underperforming" stores across 15 states by April 2025 as part of its strategic real estate adjustments, also closing its San Bernardino distribution center in May 2025, impacting locations in states like California, Ohio, Texas, and others, to focus on profitability and long-term growth. 
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Why is Amazon closing fresh stores?

Amazon is closing all its physical Amazon Fresh and Amazon Go stores in early 2026 because they failed to create a distinctive customer experience with a scalable economic model, leading the company to shift focus to expanding Whole Foods Market and its booming online grocery delivery services. The move aims to invest in faster-growing areas, like same-day delivery and new Whole Foods locations, rather than struggling brick-and-mortar grocery formats. 
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What stores are closing permanently in 2026?

On the other hand, GameStop , Francesca's and Walgreens lead the way with the most planned closures in 2026.
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Is Amazon Go closing?

Yes, Amazon is closing all its Amazon Go and Amazon Fresh stores, a move announced in late January 2026, to shift focus to expanding Whole Foods Market locations and boosting online grocery delivery. While the Amazon-branded stores are shutting down, some locations will be converted into Whole Foods, and Amazon will continue its online grocery services. 
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How many malls will close in 2025?

Malls Closing at Record Rates

According to , there are about 1,200 malls remaining in the U.S. as of April 2025, but only around 900 are projected to still be in operation by 2028. Even more alarming, the same research projects that nearly 87% of large shopping malls may shut down within the next decade.
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Which grocery chain is closing stores?

Yes, grocery stores are shutting down across the U.S., with major chains like Kroger, Walmart, Winn-Dixie, and Stop & Shop closing underperforming locations due to rising costs, inflation, and changing consumer habits, impacting communities and creating "food deserts," while some smaller chains, like Hitchcock's Market, are closing entirely. These closures reflect broader retail pressures, with some stores being sold to competitors like Aldi or rebranded. 
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Is CVS closing stores in 2025?

CVS continued its store optimization strategy in 2025, closing approximately 270 locations nationwide as part of an ongoing plan to streamline operations, following nearly 900 closures between 2022-2024, while also opening new stores, including some within Target, to balance its retail footprint amidst industry shifts. The company's restructuring aims to adapt to pharmacy benefit manager pressures, the growth of online pharmacies, and broader economic factors, though specific location details often emerge closer to the closure dates.
 
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Why is every store shutting down?

So many stores are closing due to the massive shift to online shopping, rising operational costs (inflation, rent, labor), increased competition (especially from e-commerce giants like Amazon, Temu), and strategic missteps like failing to adapt to new consumer expectations for personalized, experiential shopping, compounded by a pandemic-era spending slowdown and high interest rates. Retailers are struggling to balance lower demand for non-essential goods with increased expenses, leading to widespread closures as they downsize or exit unprofitable locations, with some closures also driven by increased theft and tariffs. 
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What is replacing shopping malls?

Malls are being replaced by mixed-use "20-minute communities" featuring housing, offices, entertainment, and green spaces, transforming them into "live, work, play" hubs to create walkable neighborhoods with integrated services like healthcare, fitness, and urban farming. Developers are repurposing defunct malls into residential units, co-working spaces, and even vertical farms, leveraging existing infrastructure to address housing shortages and create vibrant local centers rather than just shopping destinations.
 
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What major stores are closing?

Major retailers closing or reducing stores in 2026 include GameStop, Macy's, Walgreens, Saks Global, Value City Furniture, Carter's, and American Eagle, with closures often due to restructuring, bankruptcy, or shifting consumer habits, affecting locations in malls and high streets across the U.S.
 
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Why is retail struggling?

American consumers have shifted their purchasing habits due to various factors, including experience spending versus material goods and homes, casual fashion in relaxed dress codes, as well as the rise of e-commerce and particularly juggernaut companies such as Amazon.com and Walmart.
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Why is Ulta shutting down?

Ulta isn't closing all stores but is ending its partnership with Target's shop-in-shop concept by August 2026, closing about 600 locations within Target stores due to strategic shifts, slow sales growth for the partnership, and a desire to focus on its core business and international expansion, while also dealing with intense competition from rivals like Sephora. Some individual store closures happen for various reasons, but the main story is the strategic breakup with Target.
 
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What stores are not going to exist in 2026?

Major chains, from department store Macy's to restaurant chains Pizza Hut and Wendy's, have already announced multiyear closure plans that extend into 2026, as have some niche stores. Many companies, such as Macy's, are closing their physical stores to invest more resources into their online businesses.
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What is replacing Ulta in Target?

Target is replacing its Ulta shop-in-shops with Warby Parker in some locations, with the eyewear retailer opening mini-stores offering glasses, contacts, eye exams, and vision tests, as the Ulta partnership ends in August 2026, shifting focus from prestige beauty to a new category.
 
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