Between high inflation rates, impending tariff hikes, and shopping shrinkage still very much in effect, the retail industry is walking on eggshells. In the wake of the pandemic, many businesses are still grappling financially, on top of trying to appeal to younger consumers—all while working to build a strong online presence, too. Fast Company summed it up best: We are in the midst of a "retail apocalypse." And things aren’t letting up in 2025, according to a new retail data report.
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Experts say closures will greatly impact craft stores, mid-market apparel chains, and home goods retailers.
Last year marked a record high in store closures since the 2020 pandemic. Big Lots, Family Dollar, CVS Health, 7-Eleven, and Macy’s contributed to the 7,325 retail closures in 2024. However, this year’s losses are predicted to be even more catastrophic.
A new data analysis from Coresight Research, as reported by Inc., estimates that store closings will surge to 15,000 in 2025.
As of Jan. 10, the retail data firm had already logged 1,925 confirmed store closings. This list ranges from department stores to office supply chains, including Kohl’s, JCPenney, Foot Locker, and Office Depot. Meanwhile, Party City, Big Lots, The Container Store, and Joann have ongoing bankruptcy filings. In 2024, retail bankruptcies doubled to 51 companies, per Coresight.
In an interview with The Washington Post, retail analyst Brandon Svec of CoStar Group marked hobby and craft chains (like Hobby Lobby and Michaels), home goods stores (think furniture stores like Crate & Barrel), and middle-market apparel retailers (such as J. Crew and The Gap), most vulnerable for closures in 2025.
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Why are so many stores going dark?
Simply put, most consumers favor online shopping over the in-store experience. This is a direct threat to brick-and-mortar stores and other retailers who don’t have a digital footprint (or a poor one at that).
And then there are big-box chains like Walmart, Target, Costco, and Sam’s Club, who have streamlined the shopping experience—you can buy eggs, socks, shampoo, and a new TV all in one place. Plus, budget spenders are at a disadvantage due to increasing interest rates, added former Columbia Business School professor Mark Cohen to The Washington Post.
“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,” Coresight Research CEO Deborah Weinswig told Inc. “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. 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.”
There’s also the matter of locked display cases. Although a strategic ploy to prevent shoplifting, the cages actually deter customers from spending money.
“Who wants to go shopping for things in a store when there’s this added inconvenience of getting someone to unlock a shelf?” asked Cohen. “It’s probably cheaper for them to order it online anyway and have it on their doorstep the next day.”
President Trump’s proposed tariff hikes are also expected to take a toll on the retail industry, though only time will tell.
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The bright side:
It’s not all bad news, however. In 2025, more than 1,000 store openings were announced before Jan. 10, per Coresight.
John Mercer, head of global research at Coresight, said value retailers like Dollar General and Dollar Tree are forecasted to flourish in 2025. Aldi, T.J. Maxx, HomeGoods, and Marshalls are likely to open more locations as they continue to "resonate with consumers," he told The Washington Post.
Other retailers that are expected to succeed include Burlington, JD Sports, Barnes & Noble, and Pandora. UK retailers like Mango and Primark are also making a splash with American shoppers.
“I do believe brick and mortar will always be successful,” said Cohen. “But it’s not ubiquitous as it once was.”
