A tough year for retail

Several well-known US retailers shut down, and store closures jumped across the country this year. Many shoppers noticed empty storefronts where familiar brands once stood.

About 8,200 stores closed this year, around 12% more than in 2024, according to Coresight Research.

Why?
Retailers struggled as consumers pulled back on discretionary spending while inflation stayed stubbornly high. Weak sales, heavy debt, and long-term shifts toward online shopping pushed many aging chains to the brink.

Forever 21 filed for bankruptcy for the second time in March and closed around 500 US stores. The fast-fashion brand failed to keep pace with rivals like Shein and Temu and felt pressure from tariffs and cost-conscious teen shoppers.

Joann, a crafts and fabrics staple for more than 80 years, closed in February after its second Chapter 11 filing in less than a year. Sluggish sales, inventory issues, and debt proved too much, though Michaels later revived some of its private labels.

Party City completed its shutdown in February, weighed down by more than $1.7 billion in debt and fierce competition from online sellers and big-box stores.

Rite Aid closed in October after another bankruptcy. Once a pharmacy giant, it collapsed under $4 billion in debt, store closures, and competition from larger chains like CVS and Walgreens.