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Store Closings Surge To Highest Level Since Pandemic: Why 2025 Could Be Worse

Retail store closures surged in 2024, reaching their highest levels since the start of the pandemic, a new study said.

A Party City location in Lancaster, OH, going out of business.

A Party City location in Lancaster, OH, going out of business.

Photo Credit: Wikimedia Commons - Dan Keck

A total of 7,325 U.S. stores closed in 2024, driven by inflation and an increasing shift toward online shopping, according to retail data firm Coresight Research. The closings marked the steepest decline in brick-and-mortar retail since nearly 10,000 stores closed in 2020.

While 5,970 stores opened—the highest yearly number since 2012—closures outpaced openings by a net loss of 1,355 stores. 

"Retailers that were unable to adapt supply chains and implement technology to cut costs were significantly impacted, and we continue to see a trend of consumers opting for the path of least resistance," said Coresight Research CEO Deborah Weinswig. "Not only do they want the best prices, but they also have no patience for stores that are constantly disorganized, out of stock, and that deliver poor customer service."

The challenges aren't expected to stop.

Coresight predicts 15,000 stores across the country will close in 2025, with more than 2,000 already announced. Companies like Party City, Big Lots, Kohl's, and Macy’s have disclosed significant shutdown plans, fueling concerns of a more difficult year ahead for traditional retailers.

The surge in store closings has been driven by several factors, according to Coresight. 

Business liquidations—like in Party City's case—and companies filing for bankruptcy restructuring, often under Chapter 11, have caused thousands of stores to close. Some legacy retailers are also reshaping their physical store footprints to adapt to the changing shopping landscape.

Coresight also noted customers are abandoning stores for Chinese online giants Shein and Temu, drawn by cheaper prices despite usually lower-quality products.

"We have seen Shein and Temu capture market share as consumers choose to shop online to save time, money, and avoid frustration," Weinswig said. "Retailers need to embrace technologies like artificial intelligence to deliver a better customer experience and to optimize pricing to remain relevant and avoid ongoing closures."

As of Friday, Jan. 17, major U.S. retailers have announced 29.6 percent fewer store openings so far in 2025, compared to the same period in 2024.

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