From Party City to Rite Aid, major chains slash locations amid shifting consumer habits and rising costs
The Retail Landscape Faces a Shake-Up
Nearly 2,700 store closures are scheduled across the US in 2025, as at least 10 major retail chains downsize. While the total surpasses 2024’s count, it remains slightly below the 2,800+ closures of 2023, largely driven then by the collapse of Bed Bath & Beyond.
Subpoint: The trend reflects continued pressure on brick-and-mortar retailers due to e-commerce growth, rising operational costs, and post-pandemic shifts in consumer behavior.
Party City Leads With 700 Closures
Topping the list is Party City, which filed for Chapter 11 bankruptcy in late 2024. The brand, which once dominated the party-supply space, is set to close 700 stores, marking one of the largest single-company shutdowns this year.
Subpoint: The company had also filed for bankruptcy earlier in the decade, making this its second financial collapse—a reflection of declining demand for in-store party goods.
Joann’s Mass Exit: 500 Stores to Shut
Craft retailer Joann is shuttering 500 of its 850 US locations, also under the cloud of a Chapter 11 filing—its second within 12 months. The closures will leave only 350 stores in operation.
Subpoint: A surge in DIY trends during the pandemic has since waned, challenging Joann’s niche-focused model in a more digital shopping world.
Big Lots Sells Off 480 Store Leases
Facing its own financial hurdles, Big Lots is offloading 480 store leases. A late-stage rescue deal has kept the chain afloat, but many stores are still being handed over to other retailers or closed outright.
Subpoint: Despite escaping bankruptcy for now, the brand’s long-term future remains uncertain, particularly in underperforming regions.
Walgreens Continues Multi-Year Downsizing
Walgreens plans to close 450 stores by the end of 2025, part of a broader effort to streamline its operations and improve profitability.
Subpoint: This marks the continuation of a strategic pivot toward fewer, higher-performing locations and more digital health services.
Family Dollar, Starbucks, and Macy’s Also Cut Back
- Family Dollar will shutter 370 stores, following last year’s closure of 600. Parent company Dollar Tree is shifting focus to its namesake brand.
- Starbucks announced it will close over 100 locations, representing roughly 1% of its US portfolio, targeting underperforming stores that don’t meet environmental or financial standards.
- Macy’s is eliminating 66 stores this year, part of a larger plan to shut 150 locations by 2026, reducing its footprint to around 350 stores.
Subpoint: These brands are targeting low-traffic or underperforming stores, with a focus on redeploying resources to higher-growth markets or digital operations.
Kroger and Rite Aid Reduce Store Count
- Kroger, America’s largest supermarket chain, is closing 60 stores over 18 months. Despite this, the company is simultaneously expanding into high-growth areas.
- Rite Aid, which entered bankruptcy with 1,250 stores, has now closed all remaining locations, with at least 54 confirmed shutdowns before its liquidation.
Subpoint: These closures reflect consolidation trends in grocery and pharmacy sectors, where scale and regional market dominance are becoming essential.
Smaller Retailers: Kohl’s and JCPenney
- Kohl’s is closing 27 stores across 15 states, a minor adjustment in its network of over 1,150 locations.
- JCPenney, which has slowed the pace of closures, will shut eight more stores this year while listing 120 others for sale.
Subpoint: While not in crisis, these brands are making surgical cuts to maintain profitability and adapt to changing consumer patterns.
Retail’s Future: Consolidation and Transformation
According to UBS analysts, the US could see up to 45,000 retail store closures by 2029, particularly among small businesses and regional chains. Meanwhile, giants like Walmart, Target, Costco, and Home Depot continue to expand, signaling a clear divide in the market.
Subpoint: The gap between thriving mega-retailers and struggling chains is widening, with technology adoption, customer experience, and operational efficiency emerging as key survival factors.
