Store Closures Hit Highest Level Since Pandemic — See Who Is Shutting Down the Most Locations

After a relatively quiet year for store closures in 2024, 2025 is shaping up differently. According to new reporting, U.S. retailers have already announced more than 2,600 store closures early in the year—more than triple the number recorded during the same period last year. Among the biggest contributors: Party City, Big Lots, and Walgreens.

While each company’s situation is unique, the larger trend is clear: the retail sector is entering another phase of rightsizing, driven by a mix of economic pressures, changing shopper behaviors, and strategic rethinking of brick-and-mortar footprints.

Leading the Wave: Who’s Closing and Why

Party City is undergoing a significant restructuring after filing for bankruptcy in early 2023, resulting in the planned closure of more than 150 stores. The party goods chain struggled with declining demand, supply chain challenges, and rising competition from mass merchants and online players.

Big Lots is another major name scaling back. The discount retailer plans to close roughly 35 stores this year as it shifts focus toward more profitable locations and rethinks its approach to real estate amid mounting cost pressures.

Walgreens, meanwhile, continues to execute its multi-year plan to close hundreds of stores nationwide. Facing high operating costs, shrinking prescription margins, and growing competition from both traditional retailers and digital pharmacies, Walgreens is streamlining its physical footprint to concentrate on higher-performing sites.

Other retailers, from small regional chains to specialty banners, are also quietly trimming their store portfolios as they adapt to a market that demands more flexibility and efficiency.

The Bigger Picture: What’s Driving the Closures?

Several macro forces are fueling the uptick in store closures:

• Economic Uncertainty: Persistent inflation and a cautious consumer mindset are creating a tough environment for retailers heavily dependent on discretionary spending.
• E-Commerce Growth: While physical stores remain critical, online channels continue to absorb a greater share of total retail sales, putting pressure on underperforming locations.
• Changing Consumer Behavior: Shoppers are more selective about where—and how—they spend their time and money, prioritizing convenience, experience, and value.
• Portfolio Optimization: Retailers are increasingly willing to shutter marginal locations to free up resources for investments in technology, fulfillment capabilities, and top-tier store experiences.

Rather than signaling a wholesale decline of brick-and-mortar retail, the closures reflect a strategic realignment. Successful retailers are learning that fewer, better-located, and more experiential stores can often deliver greater long-term value than sprawling, outdated networks.

A Moment of Opportunity?

For some retailers and brands, this wave of closures opens new doors:

• Real Estate Opportunities: Prime locations may become available for expanding brands at more favorable lease terms.
• M&A Activity: Struggling banners may become acquisition targets for healthier competitors looking to gain market share or enter new geographies.
• Format Innovation: As older store models close, there’s room for new, more agile concepts that blend physical and digital engagement more effectively.

In many ways, the closures of 2025 are not just an ending—but a catalyst for transformation across the industry.

Final Thoughts

The accelerating pace of store closures in 2025 is a reminder that retail’s evolution is far from over. Retailers who approach this moment with agility, clarity, and customer focus have a chance to emerge stronger—while those who cling to outdated models risk falling further behind. In a marketplace where relevance is everything, every square foot matters more than ever.

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