Design and Construction, Human Resources, Maintenance and Operations

U.S. Store Closures Reach Post-Pandemic High

Many retail facilities managers face uncertainty as store locations continue to close throughout the country.

Following a spike in U.S. store closures in 2024, Coresight Research expects closures to escalate further this year, to approximately 15,000. The retail advisory firm projects store openings will remain steady, with about 5,800 stores opening nationwide this year.

U.S. store closures totaled 7,325 in 2024, the highest number seen since 2020, when Coresight Research tracked almost 10,000 closures. Store openings totaled 5,970 in 2024, the highest number of store openings since 2012, when Coresight Research began tracking this data. Overall, store closures outpaced openings in 2024 with a net loss of 1,355 stores (as of Jan. 10, 2025).

“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,” said Coresight Research CEO Deborah Weinswig. “Last year, we saw the highest number of closures since the pandemic.”

She explained, “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.

“We have seen Shein and Temu capture market share as consumers choose to shop online to save time, money, and avoid frustration,” Weinswig continued. “Retailers need to embrace technologies like artificial intelligence to deliver a better customer experience and to optimize pricing to remain relevant and avoid ongoing closures.”

Supporting expectations of a higher number of store closures in 2025, year to date, Coresight Research has already tracked over 2,000 planned closures. Major U.S. retailers have announced 29.6% fewer openings and 334.3% more closures when compared to the year-ago period. Closures announced in late 2024/early 2025 by Party City, Big Lots, Kohl’s, and Macy’s that are planned for 2025 are causing the elevated closure numbers early this year.

Coresight Research sees major store closure programs falling into three broad categories: 1) liquidations resulting in all stores closing, 2) distressed retailers closing large swathes of stores, often under Chapter 11 bankruptcy restructuring, and 3) legacy retailers reshaping their store footprints due to a changed retail context.

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