Major spike in retail store closings forecast for this year

New York — U.S. retail store closings are expected to more than double this year and greatly outpace new store openings, according to forecasting by retail and technology advisory firm Coresight Research. In 2024, U.S. store closures across all retail categories totaled 7,325, the highest number since 2020, when Coresight tracked nearly 10,000 closings. For 2025, the number is expected to reach nearly 15,000, while openings will be around 5,800. At 5,970, openings in 2024 were the highest since 2012, when Coresight began tracking this data, but still lagged closings for a net loss of 1,355 stores. “Inflation and a growing preference among consumers to shop online to find the cheapest deals took a toll on brick-and-mortar retailers in 2024,” said Deborah Weinswig, CEO at Coresight Research. “Last year we saw the highest number of closures since the pandemic. 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.” Weinswig said shoppers are not only motivated by the best price, “they also have no patience for stores that are constantly disorganized, out of stock and that deliver poor customer service.” China-based, low-cost online retailers Temu and Shein have captured market share as consumers opt for time- and money-saving e-commerce, she noted. “Retailers need to embrace technologies such as artificial intelligence to deliver a better customer experience and to optimize pricing to remain relevant and avoid ongoing closures,” said Weinswig. So far this year, Coresight has tracked more than 2,000 closures. In addition, major retailers have announced nearly 30% fewer openings and about 334% more closures vs. the same period in 2024. Store closings announced in late 2024 and early 2025 have come from Big Lots, Macy’s, Joann, Party City and Kohl’s. Major store closures fall into three main categories, according to Coresight: liquidations as a result of all stores closing; distressed retailers closing large numbers of stores, often under Chapter 11 restructuring; and legacy retailers reshaping their store footprints.