Coresight Research warns approximately 15,000 store closures projected for 2025

By avagrace // 2025-01-29

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U.S. retail faces a significant shift, with 15,000 store closures projected for 2025, far outpacing the 5,800 expected openings.
E-commerce giants like Shein and Temu are driving the decline of traditional retail by offering low-cost, convenient online shopping experiences.
Inflation and rising price sensitivity have pushed consumers toward online retailers, intensifying pressure on brick-and-mortar stores.
Major retailers like Amazon and Walmart thrive by integrating technology and optimizing operations, while smaller chains struggle to adapt.
Bankruptcies and closures, including Party City and Big Lots, highlight the failure of many retailers to meet evolving consumer demands.

The American retail landscape is undergoing a seismic shift, with store closures reaching their highest levels since the pandemic. According to Coresight Research, a leading retail advisory firm, approximately 15,000 stores are expected to close in 2025, while only 5,800 new stores are projected to open. Last year, retailers in the United States shuttered 7,325 stores – the highest since the height of the Wuhan coronavirus (COVID-19) pandemic in 2020, when nearly 10,000 stores were forced to shut down by lockdowns. While store openings also hit a record high of 5,970 in 2024, the net loss of 1,355 stores underscores the challenges facing traditional retailers. (Related: Unprecedented wave of store closures sinks U.S. retail industry.) At the heart of the retail crisis is the growing dominance of e-commerce. Companies like Shein and Temu, which specialize in ultra-low-cost online shopping, have captured significant market share by offering convenience, competitive pricing and a seamless shopping process from wherever their customers have access to the internet. These platforms have tapped into a fundamental shift in consumer behavior: Shoppers no longer have the patience for disorganized stores, empty shelves or poor customer service. Instead, they are opting for the path of least resistance – clicking "buy now" from the comfort of their homes. Inflation has further exacerbated the problem. As prices rise, consumers are becoming more price-sensitive, flocking to online retailers that promise the best deals. This has put immense pressure on traditional retailers, many of whom are already grappling with rising operational costs, supply chain disruptions and outdated business models. Coresight Research highlights that retailers unable to adapt their supply chains and implement cost-cutting technologies have been hit the hardest. Artificial intelligence, for example, has become a critical tool for optimizing pricing, managing inventory and enhancing the customer experience. Yet, many legacy retailers have been slow to embrace these innovations, leaving them vulnerable to more agile competitors.

Smaller chains and specialty retailers struggling to compete

The consequences of this failure are evident in the wave of bankruptcies and store closures sweeping the industry. In 2024, 51 retailers filed for bankruptcy, up from 25 in 2023. Major chains like Party City, Big Lots, Kohl’s and Macy's have announced significant closures, with Party City planning to shut down all 700 of its stores and Big Lots closing 300 locations. These closures are not just a reflection of financial distress but also a sign that these retailers have lost touch with what today’s consumers want. While some retailers are struggling to survive, others are thriving. Amazon, Costco and Walmart continue to dominate the market, leveraging their scale, efficiency and technological prowess to meet consumer demands. These giants have successfully integrated their online and offline operations, offering customers the best of both worlds. Meanwhile, smaller chains and specialty retailers are finding it increasingly difficult to compete. The Container Store, Joann and rue21 are just a few examples of retailers that have filed for bankruptcy in recent months. Even drugstore chains like Walgreens and CVS are trimming their footprints as they adapt to changing consumer preferences. Watch this video warning about theft-related store closures. This video is from the Treasure of the Sun channel on Brighteon.com.

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Smaller chains and specialty retailers struggling to compete

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