A customer exits the Macy’s department store at Sunrise Mall in Massapequa, New York (Picture: Getty Images)
Thousands of stores closed across the US in 2024 and the trend is projected to continue this year – only at double the rate.
A total of 7,325 stores shuttered last year while 5,970 opened, representing a net loss of 1,355, per Coresight Research.
But for 2025, the research group estimates that 15,000 stores will close their doors, which is more than a 50% hike compared to last year. And just 5,800 are predicted to open, which is an even smaller figure than in 2024.
So far this year, more than 2,000 stores have already gone out of business, which is a 335% year-over-year increase, according to the research group cited by Time Out earlier this week.
More stores closed than opened last year (Picture: Getty Images)
Factors at play include downsizing linked to bankruptcies, liquidations and changes in retail strategy.
Senior retail executive and Retail Unwrapped podcast host Shelley Kohan said that rising costs in American retail have pushed businesses to streamline operations, shrink stores and optimize their supply chains and inventory.
‘Companies can mitigate the risk of store closures by using sound operational processes, developing deep customer loyalty, creating a great working environment, and driving marketing initiatives that resonate with the target market,’ Kohan told Newsweek regarding the research findings.
The number of stores predicted to close this year is more than double last year’s figure (Picture: Getty Images)
She added that not all is lost for retailers.
‘Although store closures may outpace store openings this year, the consumer will continue to shop in physical stores which will remain the dominant channel in retail,’ Kohan said.
‘Today’s consumer is looking for the social interaction, immediate gratification, and exploration of new finds that physical shopping provides.’
Some retailers including Macy’s have adopted a strategy of closing ‘underperforming’ stores and opening new ones with a new format (Picture: Getty Images)
Several companies have implemented a strategy of closing ‘underperforming’ locations while opening new ones with a revamped format.
Department store giant Macy’s last month confirmed it will close 66 stores across 22 US states this year as part of its Bold New Chapter strategy. The plan entails closing around 150 ‘non-go-forward’ locations over three years and opening 350 ‘go-forward’ stores through 2026.
But for some big retailers, the challenging economy has spelled the end. Party City, the largest party supply retail chain in the country, in December announced that it was immediately shutter hundreds of its remaining locations.
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