Retail Store Closures Surge, On Track for Record Year in 2025
Retail Store Closures Surge, On Track for Record Year in 2025
Embedded Files
July 9, 2025 | New York City
The U.S. retail landscape is experiencing significant upheaval, with nearly 6,000 store closures announced in the first half of 2025, according to a report from Coresight Research. That figure represents 123.7 million square feet of shuttered retail space—far outpacing the 3,960 new store openings and raising concerns about retail real estate volatility.
Bankruptcies are a major factor behind the surge in closures. Retailers like Rite Aid, At Home, and Forever 21 have filed for Chapter 11 protection, while others like Joann and Party City continue to reduce their physical footprints. Despite this, analysts say overall vacancy rates remain tight at 4.3%, with much of the space quickly being backfilled.
Coresight projects a total of 15,000 closures for 2025, which would exceed the highest annual total since the height of the pandemic in 2020. However, experts caution against overreacting, noting that physical retail is far from dead—many retailers are still expanding, including Ulta, Daiso, and Casey’s, which plans 145 new stores this year.
The closures reflect broader structural shifts in the market, compounded by inflation, tariffs, and cautious consumer spending. While headlines may paint a grim picture, analysts say the reshuffling is part of a long-term retail evolution, not a collapse.
Page updated
Google Sites
Report abuse