Walking through empty mall corridors and seeing familiar store names announcing their final sales has become an unsettling norm across America. The retail landscape is shifting dramatically as approximately 15,000 stores are expected to close in 2025, marking the highest closure rate since 2020. From century-old institutions to modern outdoor gear retailers, no segment seems immune to the mounting financial pressures and changing shopping habits that are reshaping how Americans buy everything from clothing to home goods.
Macy’s continues shrinking its footprint nationwide
The iconic department store that has anchored American shopping for generations is closing 66 locations this year as part of its Bold New Chapter strategy. This aggressive downsizing affects major metropolitan areas including downtown Brooklyn, Philadelphia’s City Center, and shopping centers in Florida and New York. The closures represent more than just empty storefronts – they signal the end of an era when department stores served as community gathering places and one-stop shopping destinations for entire families.
These store closures are part of a larger plan to focus resources on 350 “go-forward” locations through 2026. The strategy acknowledges that the traditional department store model struggles against online shopping and specialty retailers. For shoppers who have relied on these locations for decades, the closures mean longer drives to find similar merchandise selections and the loss of familiar customer service relationships that took years to develop.
JCPenney shutters eight more locations permanently
The department store chain that once competed directly with Macy’s and Sears has closed eight stores across seven states, from Maryland’s Westfield Annapolis Mall to California’s Shops at Tanforan. These closures hit particularly hard in smaller cities where JCPenney often served as the primary destination for affordable family clothing and home goods. The Pocatello, Idaho location and Topeka, Kansas store were likely the main department store options for residents within a 50-mile radius.
The retailer’s struggles reflect broader challenges facing mid-tier department stores that can’t compete with luxury retailers on prestige or with discount chains on price. Local communities lose more than just a store when JCPenney closes – they lose jobs, tax revenue, and often the anchor tenant that kept entire shopping centers viable. The ripple effects touch other businesses in these locations as foot traffic decreases significantly.
Luxury retailers face their own survival challenges
Even high-end department stores aren’t immune to the retail apocalypse sweeping America. Neiman Marcus will close its Plano, Texas location in 2027, while the company’s original downtown Dallas flagship store resembles a ghost town with sparse merchandise and minimal foot traffic. The luxury retailer’s financial struggles became evident during its 2020 bankruptcy filing, and recovery has proven more difficult than anticipated despite splashy events and celebrity appearances.
The merger between Saks Fifth Avenue and Neiman Marcus Group created Saks Global, but this consolidation comes with significant risks. The combined entity faces over $100 million in losses and must make $120 million in interest payments on $2.2 billion in bonds. For luxury shoppers, this instability means fewer options and potentially reduced service levels as these stores cut costs to survive.
Outdoor retailers close flagship locations
REI Co-op announced plans to close three high-profile stores in New York, Boston, and Paramus, New Jersey by 2026. These aren’t small suburban locations but flagship stores in major metropolitan markets where outdoor recreation has growing popularity. The closures suggest that even retailers serving active lifestyle markets face significant headwinds from online competition and changing consumer shopping patterns.
Orvis took an even more dramatic approach, announcing the closure of 31 full-price stores and five outlets by early 2026. The Vermont-based company is returning to its roots as a fishing and hunting brand, eliminating much of its lifestyle apparel business. The decision affects thousands of customers who relied on these physical locations to try on outdoor gear and receive expert advice from knowledgeable staff members.
Specialty chains disappear from shopping centers
Claire’s Holdings sold its North American business and listed 291 stores for closure, including 235 Claire’s locations and 56 Icing stores. For parents of tweens and teenagers, this represents a significant loss since Claire’s served as the go-to destination for affordable jewelry, accessories, and ear piercing services. The stores were fixtures in practically every American mall, offering a specific retail experience that online shopping struggles to replicate.
The fabric and crafts retailer Joann closed all 800 stores nationwide after 80 years in business, affecting hobbyists and DIY enthusiasts across 49 states. This closure is particularly devastating for quilters, sewers, and crafters who relied on the ability to touch fabrics, compare colors in person, and seek advice from experienced staff. The company’s closure leaves a significant void in communities where crafting serves both as hobby and social activity.
Surf and skate brands vanish from retail
Liberated Brands filed for Chapter 11 bankruptcy and closed all Volcom, Billabong, Quiksilver, Spyder, RVCA, Roxy, and Honolua stores after a rapid rise and fall following the COVID-19 pandemic. The company grew from 67 stores to 140 between 2021 and 2022 but couldn’t sustain the expansion amid rising interest rates and competition from fast-fashion retailers. This closure eliminates dedicated spaces where surf and skate enthusiasts could experience the culture and community associated with these lifestyle brands.
While Authentic Brands Group will continue licensing these names to other retailers, the dedicated brand experience and knowledgeable staff expertise are likely lost forever.
Discount retailers trim underperforming locations
Dollar General closed 96 stores and 45 Popshelf locations during the first quarter of 2025, representing less than one percent of their total store base but still affecting thousands of customers in rural and urban communities. These closures often hit hardest in small towns where Dollar General served as the primary convenient shopping option for basic necessities. The loss of these locations forces residents to drive longer distances for everyday items like cleaning supplies, snacks, and personal care products.
Kohl’s closed 27 retail locations plus its San Bernardino fulfillment center, affecting states from California to Pennsylvania. The department store chain that positioned itself between discount and premium retailers struggles to find its identity in an increasingly polarized market. Customers lose access to convenient locations for brand-name clothing at moderate prices, plus popular services like Amazon return processing that drove additional foot traffic.
Pharmacy chains reduce their physical presence
Walgreens announced plans to close 1,200 underperforming stores over three years, with 500 closures scheduled for fiscal year 2025. These pharmacy closures create genuine hardship for elderly customers and those without reliable transportation who depend on neighborhood locations for prescription medications and basic health services. The closures particularly impact urban areas where Walgreens often served as the closest pharmacy option for apartment dwellers and public transit users.
The pharmacy chain’s struggles reflect challenges from online prescription services, insurance reimbursement pressures, and competition from grocery store pharmacies. When neighborhood Walgreens locations close, customers must transfer prescriptions and rebuild relationships with new pharmacy staff who understand their medication histories and specific needs. The loss of these established relationships can significantly impact healthcare management for chronic conditions.
Home goods stores struggle with debt loads
At Home closed 26 locations across 12 states while seeking Chapter 11 bankruptcy protection as part of restructuring $2 billion in debt. The home decor superstore concept appealed to budget-conscious shoppers seeking affordable furniture and seasonal decorations, but couldn’t generate sufficient cash flow to service its massive debt load. These closures eliminate large-format stores where families could walk through room displays and compare furniture pieces side-by-side before purchasing.
The retailer’s struggles highlight how private equity ownership and excessive debt can doom otherwise viable retail concepts. Customers lose access to vast selections of home goods at competitive prices, forcing them toward online purchases where visualizing scale and quality becomes much more difficult. The store closures also eliminate jobs in warehousing, customer service, and visual merchandising that supported local economies in affected communities.
The wave of retail closures sweeping America represents more than corporate restructuring – it’s fundamentally changing how and where people shop for everything from daily necessities to special occasion items. As familiar stores disappear from neighborhoods and shopping centers, consumers must adapt to longer travel distances, reduced product selection, and the loss of personal relationships with knowledgeable retail staff who provided trusted advice for decades.
