Store Closures On Track to Far Exceed 2024 Levels
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Store closures across the U.S. continue to rise, and remain on track to far significantly surpass both new openings and the figures seen in 2024.
According to a new report from research and advisory firm Coresight Research, cited by CoStar News, 5,822 store closures were recorded as of June 27, compared to 3,496 closures announced during the same period of 2024. The 2025 closures have also far outstripped the 3,960 announced openings this year.
Why It Matters
The stark increase in closures reflects long-term challenges to the retail sector, which has for years battled declining foot traffic and the rise of e-commerce - particularly since the COVID Pandemic - Coresight reported.
Persistent inflation and tariff hikes on goods from other countries - heralded by the Trump administration as a measure to boost American manufacturing and protect jobs - have also taken tolls on consumer confidence and spending, analysis from US banking giant JP Morgan suggests.
What To Know
Early in the year, Coresight Research predicted that around 15,000 stores would close in 2025, more than double the 7,325 that shuttered last year. Those were the highest number of annual closures since 2020, when there were 9,698. Store openings, meanwhile, were predicted to fall to 5,800 from 5,970 in 2025.
Since it made the prediction in late January, several major brands have announced or embarked upon reductions in their nationwide footprints.
Macy's and Kohl's are among the household names to announce widespread closures, fueled in part by declining sales and a desire to optimize operations to accommodate shifting consumer behaviors.
A store closing sign is displayed as customers shop during the last day of a store closing sale at a JOANN Fabric and Crafts location in a shopping mall following the company's bankruptcy in Torrance,...
A store closing sign is displayed as customers shop during the last day of a store closing sale at a JOANN Fabric and Crafts location in a shopping mall following the company's bankruptcy in Torrance, California on May 27, 2025. More
Patrick T. Fallon/AFP via Getty Images
Pharmacies have also seen mass closures. Chains such as CVS and Walgreens have already announced plans to permanently shutter hundreds of locations across the country. Rite Aid, which filed for bankruptcy in early May, recently saw the number of locations marked for closure surpass 1,000, though many of these have been sold off to competitors as it attempts to exit the Chapter 11 process.
The widespread shuttering of pharmacies has exacerbated fears over Americans' access to essential medications, as many face the prospect of living in what have been referred to as "pharmacy deserts."
What People Are Saying
John Mercer, Coresight's head of global research, told CoStar News: "U.S. retail is in a period of unusually high real-estate churn as cyclical impacts confront structural shifts."
"U.S. store closures are up by two-thirds compared to one year earlier, while openings are flat," he added. "That closures total is compounding closure numbers that were already up, year over year, in week 27 of 2024."
Miranda Rochol, Senior Vice President of Provider Solutions at healthcare technology firm Prescryptive Health, told Newsweek that the reasons for mass pharmacy closures "are complex, but it's not an overstatement to say pharmacies are facing unprecedented economic strain, with shrinking margins and reimbursement rates."
"Many small pharmacies now operate at a loss on common prescriptions, and large chains are restructuring in response to reduced revenues, declining foot traffic, and other outdated models that no longer align with the needs of modern consumers," she added.
What Happens Next?
It remains to be seen whether the number of closures will ultimately match the 15,000 originally forecast by Coresight back in January.
Last week, Coresight estimated that the level of store closures could result in over 120 million square feet of closed retail space in 2025.
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