The Shutdown Wave
Something has shifted in American retail. Chains that survived decades couldn't make it through last year. More are falling as we speak. The landscape is changing fast, and understanding why matters.
Nheyob, CC BY-SA 4.0, Wikimedia Commons, Modified
2025–2026 Overview
The retail apocalypse isn't slowing down. After losing roughly 8,200 stores in 2025—a 12% jump from 2024—nearly 300 more closures are already confirmed for 2026. Beloved craft stores as well as major department chains are facing extinction in an era dominated by online shopping and economic uncertainty.
Party City
The party's officially over. After declaring bankruptcy in late December 2024, Party City closed all 700 stores by February 2025, ending 40 years of business. The retailer couldn't compete with Amazon, Spirit Halloween's seasonal dominance, and big-box stores like Walmart offering cheaper alternatives.
Mike Mozart from Funny YouTube, USA, Wikimedia Commons
Joann Fabrics
Crafters across America mourned when Joann closed all 800 stores in May 2025, ending an 80-year legacy. The company filed for Chapter 11 bankruptcy twice within a year, citing "significant and lasting challenges in the retail environment”.
Mike Mozart from Funny YouTube, USA, Wikimedia Commons
Forever 21
The name proved painfully ironic. Forever 21 filed for bankruptcy in March 2025, its second time, and shuttered approximately 500 US stores. Chinese e-commerce giants Shein and Temu crushed the fast-fashion retailer, especially after pandemic-era online shopping exploded.
Phillip Pessar, Wikimedia Commons
Rite Aid
Once America's pharmacy giant, Rite Aid, closed all 1,240 remaining locations in October 2025, following its second bankruptcy in two years. The 63-year-old chain owed over $4 billion from expensive opioid prescription lawsuits and couldn't compete with CVS and Walgreens.
Big Lots
Big Lots filed for bankruptcy in September 2024 with $3.1 billion owed to thousands of creditors and sales dropping $114.5 million year-over-year. By 2025, roughly 340 stores closed, though Variety Wholesalers rescued 200-400 locations.
Harrison Keely, Wikimedia Commons
Claire's Struggles
The mall staple filed for bankruptcy twice in seven years, most recently in August 2025, facing $1–10 billion in liabilities. Private equity firm Ames Watson rescued Claire's in September with a $140 million deal, halting plans to liquidate all 1,500 North American stores.
WhisperToMe, Wikimedia Commons
8,200 Closures
Coresight Research tracked approximately 8,200 store closures in 2025. The closures vacated over 120 million square feet of retail space across America. Department stores, pharmacies, dollar stores, and specialty retailers all contracted simultaneously. Analysts warn 2026 could see 15,000 closures.
Macy's Continues
Macy's "Bold New Chapter" strategy launched in February 2024, targeting 150 store closures by the end of 2026—roughly one-third of locations. The department store confirmed 66 closures for 2025, with liquidation sales starting mid-January 2026 and running 10 weeks.
Carter's Tariffs
Trump's tariffs hit Carter's hard. The children's clothing retailer announced 150 store closures over three years in October 2025, with 100 shuttering by the end of 2026. The company pays approximately $110 million annually in import duties.
Mike Mozart from Funny YouTube, USA, Wikimedia Commons
Kroger Exits
Sixty underperforming Kroger supermarkets began closing in mid-2025 across an 18-month timeline extending into 2026. The grocery giant cited "modest financial benefit" in its Q1 2025 sales report but declined to list specific locations. Media reports confirmed closures in Illinois, Kentucky, and Texas.
Virginia Retail from Virginia, USA, Wikimedia Commons
Walgreens 1,200
Pharmacy deserts spread nationwide throughout 2025. Walgreens is shuttering 1,200 stores over three years, following an $8.6 billion loss. About 500 closed in fiscal 2025, with 700 more coming through 2027. The company blamed unprofitable stores, online retail competition, and shrinking prescription drug profits.
Harrison Keely, Wikimedia Commons
Target-Ulta Ends
A stunning breakup rocked retail in August 2025. Target and Ulta Beauty announced they won't renew their shop-in-shop partnership, ending this August 2026. Both companies cited "mutual agreement" without elaborating, though analysts point to operational challenges and shrinkage issues.
Michael Rivera, Wikimedia Commons
Foot Locker
D’s Sporting Goods acquired Foot Locker for $2.4 billion in September 2025, immediately announcing "underperforming" store closures throughout 2026. Executive Chairman Ed Stack bluntly stated they're "cleaning out the garage"—liquidating unproductive inventory, closing locations, and rightsizing assets.
Raysonho @ Open Grid Scheduler / Grid Engine, Wikimedia Commons
GameStop Hundreds
Digital gaming is killing physical retail. GameStop is quietly closing hundreds of stores this month as part of a "store portfolio optimization review" aimed at slashing costs. The video game retailer faces extinction as consumers shift to downloadable content and streaming platforms.
Mike Mozart from Funny YouTube, USA, Wikimedia Commons
Yankee Candle
Newell Brands, Yankee Candle's parent company, announced 20 US and Canadian store closures beginning this month, alongside laying off 900 corporate employees in December 2025. Company sales declined throughout 2025, with management blaming tariffs for financial troubles.
REI Flagships
The iconic SoHo flagship is closing this year. REI shutters three major locations in 2026: Paramus, New Jersey, in Q1, followed by New York City's SoHo and Boston later. The outdoor co-op cited evolving markets and customer needs requiring adaptation “to position the co-op for long-term success”.
Coolcaesar at English Wikipedia, Wikimedia Commons
Orvis Refocus
Founded in 1856 as a Vermont fly-fishing equipment store, Orvis returned to its roots in late 2025. The 169-year-old company will close 31 stores and five outlets by early 2026. President Simon Perkins cited an "unprecedented tariff landscape" forcing the decision.
Mike Mozart from Funny YouTube, USA, Wikimedia Commons
Saks Off Fifth
Strategic footprint optimization drives nine Saks Off Fifth closures beginning this month. The luxury outlet retailer—separate from Saks Fifth Avenue—shuts locations in Austin, Chicago, Washington DC, and Connecticut, among others. Parent company Saks Global struggles with significant debt while repositioning the discount brand.
Rowanlovescars, Wikimedia Commons
Wendy's Locations
"When we look at the system today, we have some restaurants that do not elevate the brand," interim CEO Ken Cook stated in November 2025. Wendy's plans to close 150–300 locations by the end of 2026, restaurants that “are a drag from a franchisee financial performance perspective”.
JCPenney Dillard's
Department stores continue their slow death march. JCPenney confirmed closing its Pleasanton, California, store on February 22, 2026, while declining further comment. Dillard's quietly shuttered multiple locations in Tennessee, Ohio, Florida, Nebraska, and Arizona throughout 2025.
Jon Konrath from Oakland, USA, Wikimedia Commons
CVS Continues
The pharmacy closures that began in 2022 continue accelerating. CVS closed 270 stores in 2025 as part of a three-year plan totaling 900 closures through 2024, then announced additional locations for 2026. The pharmacy giant eliminated 2,900 corporate jobs while restructuring into three formats.
Harrison Keely, Wikimedia Commons
Trump Tariffs
Well, the truth is that Import duties battered retailers throughout 2025. The US President imposed a sweeping 10% baseline tariff on most imports, then layered higher reciprocal duties on dozens of countries with large US trade deficits, sharply raising costs, squeezing margins, and accelerating store closures across the retail sector.
E-Commerce Dominance
Online shopping crushed brick-and-mortar retail in 2025. US e-commerce spending hit $1.34 trillion and is projected to surpass $2.5 trillion by 2030. With 84.3% of Americans shopping online, retailers closed stores to fund digital platforms and faster delivery systems.
.jpg){kind=link}