As the 2025 holiday season approaches, shoppers on both sides of the Atlantic are facing a retail landscape transformed by a surge of store closures, bankruptcies, and economic headwinds. In California and across the United States, once-familiar storefronts like Forever 21, Joann, and Rite Aid have vanished, leaving many communities without their go-to spots for gifts, crafts, and daily essentials. Meanwhile, in the United Kingdom, high street icons such as Poundland, New Look, and Claire’s Accessories are shuttering hundreds of shops, with even beloved pubs like Wetherspoons joining the list of closures.
According to a Business Insider analysis, approximately 2,700 stores nationwide in the U.S. have closed or plan to close in 2025. The reasons are varied—ranging from fierce e-commerce competition to rising costs and shifting consumer habits—but the result is the same: a rapidly shrinking brick-and-mortar retail footprint. UBS analysts have predicted that a staggering 45,000 more stores could close by 2029 as retail pivots to online fulfillment and distribution centers.
California, long a bellwether for retail trends, has seen some of the most dramatic changes. Advance Auto Parts closed all 138 of its California stores and distribution centers by the end of March 2025. At Home, after filing for Chapter 11 bankruptcy protection in June, announced plans to shutter up to 26 stores—including eight in California—before the end of September. Joann, the beloved fabric and crafts retailer, closed all 75 of its California locations by May, with Michaels swooping in to acquire some of Joann’s private label brands and intellectual property.
Other national chains have also felt the squeeze. Big Lots, after a brush with bankruptcy, managed to avoid full liquidation thanks to a lifeline from Gordon Brothers Retail Partners, but still plans to sell the leases to 480 stores. Claire’s, the accessories chain popular with teens, filed for Chapter 11 bankruptcy this summer and initially planned to close 700 stores. However, after a private equity acquisition, the liquidation was paused for about half of those locations.
Dollar General announced it would close nearly 100 stores and 45 Popshelf locations nationwide by the end of 2025, though its California presence remains at about 200 stores. Dollar Tree made headlines by selling Family Dollar to private equity firms in a $1 billion deal that closed in July, resulting in the closure of 600 Family Dollar locations in 2024 and another 370 planned for 2025 as leases expire.
Foot Locker is reducing its global store count by 10%, planning to close 275 Foot Locker and 125 Champs Sports locations in 2025, while refreshing 300 stores. GameStop, despite a large U.S. presence, is pressing ahead with a restructuring plan that will see a "significant number" of stores closed in 2025, after shuttering approximately 960 stores in 2024. The Gap, too, is set to close 35 net locations this year, continuing a trend of downsizing that has seen at least 11 Gap and six Banana Republic stores closed since 2020.
Department stores and specialty retailers are not immune. JCPenney closed eight stores in May, calling them "isolated" closures, while Kohl’s is shutting 27 underperforming stores by April—including 10 in California. Liberated Brands, which owns Volcom, Billabong, Quiksilver, Spyder, RVCA, and Roxy, is closing all 122 of its retail stores. Macy’s, as part of its "A Bold New Chapter" strategy, will close another 66 stores in 2025, including nine in California, with plans to shutter 150 underperforming stores by the end of 2026.
Petco announced in September it would close 25 underperforming stores, matching the number closed in 2024, and now operates about 1,400 stores nationwide. Rite Aid, after filing for bankruptcy twice within two years, closed all its stores nationwide in 2025, selling most locations to rival pharmacy chains. Torrid, a women’s clothing retailer specializing in sizes 10 to 30, increased its planned closures from 40-50 stores to 180 as it shifts toward a digital-first model. Walgreens, in a multi-year cost-cutting strategy, is expected to close 450 locations by the end of 2025, with more closures anticipated in 2026 and 2027.
Economic pressures are a common thread running through these closures. Tariffs, inflation, and high credit card interest rates are squeezing both retailers and consumers. Scott Lincicome, vice president of economics and trade at the Cato Institute, told Minnesota Public Radio’s Marketplace, "The tariffs are that kind of tipping point." For many small businesses, even a slight economic shift can turn a profitable operation into a losing one.
Consumers are feeling the pinch as well. To avoid higher prices, nearly half of the 2,600 consumers surveyed by Bankrate said they planned to start holiday shopping before Halloween. "Tariff concerns are likely a prominent reason why more than 2 in 5 holiday shoppers fear higher prices this year," said Ted Rossman, a senior analyst at Bankrate. About 70% of those surveyed expect to spend the same or more than last year, a glimmer of hope for retailers who rely on the holiday season to stay afloat.
Across the Atlantic, the UK’s high streets are facing their own crisis. Poundland, which began its restructuring process with 800 stores, will soon have between 650 and 700 left. The Sidcup branch is set to close on November 14, 2025, offering discounts of up to 40% as it clears out inventory. The chain, which employs over 14,000 staff, was purchased by Gordon Brothers for £1 in June, with a £90 million investment pledged to save the business.
New Look, another high street staple, will close an additional 11 stores before the end of the year, including its Lewes, Sussex location on November 8. The company has already closed nine stores across the UK in 2025 and plans to shutter around 100 in total, citing National Insurance increases and other economic pressures. "Our store in Lewes is set to close on 8 November. We would like to thank all of our colleagues and the local community for their support over the years. We hope customers continue to shop with us online at newlook.com, where our full product ranges can be found," said a New Look spokesperson, as reported by The Sun.
Claire’s Accessories, a favorite among young shoppers, will permanently close 145 stores after entering administration in September. Many of these closures will begin in late November and continue through December, with final clearance sales offering discounts of up to 30%. Even the pub scene isn’t immune: Wetherspoons is closing several locations this month, including The Water Gate in Barnstaple on November 9 and Baxter’s Court in Hackney on November 2, much to the dismay of regulars.
As the year draws to a close, the retail landscape in both the U.S. and UK looks markedly different from years past. For shoppers, the absence of familiar storefronts is more than just an inconvenience—it’s a sign of deeper changes in the way we shop, work, and socialize. Whether this wave of closures signals a permanent shift or simply a painful period of adjustment remains to be seen, but for now, the doors are closing on an era.
