Major retailers across the United States are bracing for significant store closures throughout 2025, reflecting the changing dynamics of the retail industry driven by economic challenges and shifting consumer preferences. Chains including Kohl’s, Macy’s, JCPenney, and Joann are among those announcing plans to close multiple stores, marking what many are dubbing the retail apocalypse.
Kohl’s, the Wisconsin-based department store chain, has confirmed it will shut down 27 underperforming locations by April 2025. This decision affects around 3% of Kohl's total footprint, which exceeds 1,150 stores across the country. Tom Kingsbury, CEO of Kohl's, emphasized the seriousness behind these closures, stating, "We always take these decisions very seriously... it is important we also take difficult but necessary actions to support the health and future of our business for our customers and our teams." Among the affected locations are stores in California, Florida, Pennsylvania, and New Jersey.
Macy’s is also making sweeping changes, planning to close 66 stores nationwide as part of its "Bold New Chapter" strategy aimed at enhancing profitability. Tony Spring, Macy's CEO, remarked, "Closing any store is never easy, but as part of our strategy, we are closing underproductive Macy's stores to allow us to focus our resources..." This reduction forms part of Macy’s broader plan to reduce their total store count to about 200 by the end of 2026.
JCPenney, once known as the go-to anchor store for many shopping malls, has announced the closure of several locations as well. The retailer, which previously filed for Chapter 11 bankruptcy protection and shut down around 200 stores, is set to close another eight stores by mid-2025. A company spokesperson noted, "The decision to close is never easy... due to expiring lease agreements, market changes, or other factors." Locations scheduled for closure include stores in California, Colorado, and West Virginia, among others.
Joann Fabric, too, has reported major reductions, with plans to close 500 of its 1,000 stores amid financial struggles. The company filed for Chapter 11 bankruptcy earlier this year, highlighting the challenging environment for specialty retailers. A spokesperson for Joann stated, "This was a very difficult decision to make... giving the major impact we know it will have on our team members, our customers..." The announcement highlights the significant resistance faced by brick-and-mortar stores as online shopping continues to dominate.
The retail sector is not only facing challenges from changes in consumer shopping behaviors but is also grappling with economic pressures such as inflation, which has forced several retailers to rethink their operations. Predictions from Coresight Research suggest as many as 15,000 retail outlets might close this year, which significantly outpaces the 7,325 closures recorded last year.
Other companies joining the closure trend include Walgreens, which plans to shut 500 underperforming stores this fiscal year due to financial pressures, and Party City, which announced it would close all 700 of its locations due to similar economic struggles. The aggressive downsizing from these various retailers reflects broader economic realities as the market shifts away from traditional retail.
Industry experts note the long-term effects of these closures, not just on the retailers themselves but also on communities and local economies. With many famed department stores disappearing from shopping malls, the retail shift indicates consumers' increasing reliance on online shopping platforms. Economic shifts have encouraged retailers to innovate and adapt; those slow to respond may be left behind.
The COVID-19 pandemic accelerated existing trends, forcing physical stores to compete more vigorously with e-commerce options. The longstanding evolution from physical retail to online shopping continues, and the impact is palpable. Deborah Weinswig, CEO of Coresight Research, has stated, "Retailers unable to adapt supply chains and implement technology to cut costs were significantly impacted by the pandemic and subsequent economic conditions."
These closures not only change the shopping habits of millions but also pose questions about the future of retail. What will shopping look like going forward? Are mall landscapes destined to change forever under the weight of online retail giants? The answers will come as retailers adapt to the present and prepare for what's next.