Retail Reckoning: Store Closings Sweep the USA in 2025

 

Retail Reckoning: Store Closings Sweep the USA in 2025

As we move deeper into 2025, the American retail landscape is undergoing a seismic shift. Brick-and-mortar stores, once the backbone of shopping culture, are shuttering at an unprecedented rate. From iconic department stores to discount chains, the closures are piling up, signaling a mix of economic pressures, changing consumer habits, and a relentless march toward online dominance. Here’s the latest on which stores are closing across the USA, why it’s happening, and what it means for the future of retail.

The Latest Closures: Who’s Shutting Down?

The past few weeks have brought a flurry of announcements about store closings, painting a grim picture for physical retail:

Joann Fabrics: After 80 years in business, this arts and crafts giant is waving the white flag. Facing financial strife, Joann is set to close all 800 of its stores, with the final shutdowns expected soon after February 13, 2025, in places like Miami. Shoppers can anticipate major liquidation sales in the coming weeks, but the loss of this niche retailer reflects broader challenges for specialty stores.

Forever 21: The fast-fashion darling is slashing 200 stores nationwide—more than half its 350 locations—including 21 in New York alone. The company is also closing its Los Angeles headquarters, laying off nearly 700 workers in California and Pennsylvania. Having filed for bankruptcy in 2019, Forever 21’s latest cuts suggest it’s struggling to adapt to shifting trends and online competition.

Kohl’s: By April 2025, Kohl’s will close 27 underperforming stores across 15 states. While the exact locations are still trickling out, this move is part of a broader effort to trim fat amid declining sales—a familiar story for department stores fighting to stay relevant.

Big Lots: The discount chain is calling it quits entirely, with all stores slated to close in 2025. After a tough few years, Big Lots couldn’t find a lifeline, leaving bargain hunters to seek alternatives like Dollar General or Family Dollar.

Hudson’s Bay: Known for its department stores, Hudson’s Bay anticipates closing about half of its 80 locations as part of a restructuring plan. This Canadian retailer’s U.S. downsizing, reported on March 9, 2025, underscores the cross-border ripple effects of retail woes.

JC Penney and Macy’s: Posts on X and scattered reports indicate both chains are continuing to downsize, with JC Penney cutting eight more stores and Macy’s closing over 60 in 2025. However, Macy’s is also investing in its “First 50” locations, showing a mixed strategy of retreat and reinvention.

Walmart: Even the retail titan isn’t immune, with some locations closing as part of a strategic reshuffle, though specifics remain sparse. This comes despite Walmart’s dominance, hinting at localized struggles or a pivot to e-commerce.

Why Are Stores Closing?

The reasons behind this wave of closures are multifaceted, but a few key drivers stand out:

Online Shopping Surge: The rise of e-commerce giants like Amazon and fast-growing Chinese retailers (think Temu or Shein) is siphoning customers away from physical stores. A post on X from 

@Holykisses

 on March 9, 2025, noted that a record 15,000 chain stores could close this year—double last year’s total—partly due to this digital shift.

Economic Uncertainty: Fears of a 2025 recession, fueled by Trump administration tariff policies and a $4 trillion stock market drop (reported by Reuters on March 11, 2025), are squeezing retailers. Consumers are tightening belts, and businesses are feeling the pinch of rising costs.

Overexpansion and Malls’ Decline: Chains like Forever 21 expanded too quickly during the mall heyday, only to falter as shopping centers lost relevance. Green Street Advisors predicts 25% of America’s largest malls will close by 2027, leaving retailers without a viable home.

Changing Consumer Habits: Shoppers are prioritizing value and convenience, flocking to discount chains or online platforms over mid-tier department stores. Specialty retailers like Joann face an uphill battle as DIY trends wane or move online.

Bright Spots Amid the Gloom

Not every retailer is folding. Costco, for instance, is bucking the trend by planning to open a dozen new stores in 2025, according to ABC News on March 7. Known for its loyal membership base and bulk-buy appeal, Costco proves that adaptability and a strong value proposition can still win in this climate. Meanwhile, Macy’s reports success with its “First 50” stores, where added staff and investments have boosted sales—a rare glimmer of hope for department stores.

What’s Next for Retail?

The closure wave isn’t just a retail story—it’s an economic and cultural one. Posts on X, like 

@v_andriopoulos’s on March 10, 2025, proclaim “Amazon is taking over,” and there’s truth to that. E-commerce’s convenience is hard to beat, but it’s worth questioning the cost: empty storefronts, job losses, and a hollowed-out sense of community once tied to shopping in person.

Yet, the establishment narrative—blaming everything on online shopping—feels too tidy. Could mismanagement, overreliance on debt, or failure to innovate be bigger culprits? Forever 21’s rapid expansion and Joann’s inability to pivot suggest internal failures, not just external pressures. And with economic forecasts flip-flopping (Larry Summers calls a recession “50/50,” per CNN on March 12), it’s unclear if this is a temporary purge or the start of a deeper retail collapse.

For now, shoppers can snag deals at liquidation sales, but the bigger question looms: What replaces these spaces? Will discount chains or experiential retail fill the void, or are we headed for a future where the only “store” is a website? As 2025 unfolds, the answers will shape not just commerce, but the American way of life.