Top U.S. Retail Store Closures in 2025: Why Major Brands Are Shutting Locations

Retail store closures have long been a headline-grabbing signal of industry distress — but 2025 is different. This year’s closures aren’t just the result of bankruptcies or last-ditch liquidations. Instead, many of the biggest names in retail are proactively pruning their store networks to stay competitive in a world of shifting consumer habits, rising operating costs, and relentless e-commerce pressure.

From grocery giants like Kroger to department store icons like Macy’s, retailers are taking a hard look at underperforming locations and making tough calls — closing stores to free up capital for remodels, digital investments, and higher-growth formats.

Here’s a list of major retailers that have announced significant closures in 2025 in the US (the list does not include companies that have announced bankruptcy):

Kroger announced it would close about 60 underperforming stores over an 18-month period while simultaneously planning to open roughly 30 new stores with updated layouts and formats. This is a deliberate portfolio-optimization move: management said the closures target low-productivity locations so Kroger can redeploy capital into higher-return investments (remodels, larger-format Market stores, e-commerce/fulfillment, and faster-growing trade areas).

Macy’s is in the middle of a major footprint overhaul — and 2025 is when it’s picking up speed. In January, the company named 66 of the roughly 150 “underproductive” stores it plans to shut down by the end of 2026. These closures are part of Macy’s Bold New Chapter strategy, which aims to return the retailer to “sustainable, profitable sales growth” by reallocating capital toward its 350 strongest stores and digital channels.

Some closures have already taken place — including the downtown Brooklyn flagship, which had been a Fulton Street staple since 1995, and the iconic Sunrise Mall location on Long Island.

Dollar General’s fiscal-2025 portfolio review led to the decision to close 96 Dollar General locations and 45 pOpshelf stores (141 total) and convert a handful of pOpshelf sites.

The company described these moves as a surgical pruning of underperforming or duplicative sites after reviewing local trade areas, store economics, and format fit. Management positioned the closures as operational optimization — freeing resources to invest in stronger sites, supply chain improvements, and digital/pickup capabilities — rather than a company-level liquidity crisis.

Walgreens is entering a new era — and it could mean even more shuttered stores. In 2025, the drugstore giant completed its $10 billion sale to private equity firm Sycamore Partners, splitting the business into five separate companies, including the core retail pharmacy chain. As part of its ongoing turnaround effort, Walgreens has already announced plans to close roughly 1,200 stores by 2027, with about 500 of those closures scheduled to happen within the next year.

Industry experts worry that this is just the beginning. Sycamore’s track record with other retail investments — including shutting nearly one-third of Staples’ U.S. stores — has some analysts predicting an acceleration in Walgreens closures.

CVS is pressing ahead with its multi-year plan to streamline its retail presence, confirming that around 270 stores will close in 2025. The move is part of a broader effort to “realign its retail footprint,” which means shutting redundant or persistently low-traffic locations and focusing on sites with stronger pharmacy and clinic demand.

The closures reflect a wider shift across the pharmacy sector: more patients are getting prescriptions delivered, making fewer in-person trips, and using in-store clinics more deliberately. By consolidating locations, CVS is looking to cut real estate and operating costs, improve the productivity of its remaining pharmacies, and invest more heavily in digital health and primary care services

Walmart is taking a scalpel, not a sledgehammer, to its store base in 2025. The retailer confirmed that a small number of locations will permanently close this year across several states, framing the decision as part of its routine real estate optimization process. The goal: shut underperforming stores, consolidate where trade areas overlap, and in some cases relocate or convert sites to newer formats.

Kohl’s officially shut down 27 underperforming stores across 15 states by April 2025, with California taking the biggest hit (10 closures). These moves were first announced in January and come as the company navigates a challenging retail environment — sales fell 7.2% in 2024 and are projected to drop another 2% this year, according to the Milwaukee Journal Sentinel.

The retailer said the closures were part of a targeted real estate strategy to trim unproductive sites, optimize store density, and redirect resources toward higher-performing locations and omnichannel investments. The move also included closing an older e-commerce fulfillment center and workforce reductions at the corporate level.

The company announced plans to close approximately 500 corporate-owned stores, 200 independently operated Carquest locations, and four distribution centers by mid-2025.

CEO Shane O’Kelly described the move as a “transformative action” to streamline operations, exit underperforming markets (including parts of the West Coast), and focus on core retail improvements. The plan also consolidates the distribution network to 12 major facilities by 2026 and includes the rollout of 60 new market hub locations by 2027.

Footprint Optimization: Many chains are trimming underperforming or overlapping locations to improve store productivity.

Shift to Omnichannel: More consumers are buying online, using curbside pickup, or relying on home delivery — reducing the need for dense store networks.

Rising Operating Costs: Rent, wages, and utilities have gone up, making low-traffic stores unprofitable.

Format Modernization: Retailers are closing older sites that don’t fit new experiential formats or shop-in-shop partnerships.

Capital Reallocation: Savings from closures are being redirected toward remodels, e-commerce infrastructure, and new store openings in higher-growth markets.

Competitive Pressures: Intense price competition from discounters, online players, and direct-to-consumer brands is forcing retailers to streamline.

According to Coresight Research, U.S. retailers shuttered roughly 7,325 stores in 2024, the highest annual total since the pandemic-driven retail reset of 2020. Openings were slightly lower at around 5,970, resulting in a net loss of about 1,355 stores.

The trend is accelerating in 2025: as of midyear, analysts have already tracked over 5,800 closures, and Coresight projects the full-year total could hit 15,000 closures — more than double 2024 levels. Even with around 5,800 new openings expected, 2025 is shaping up to deliver one of the steepest net declines in U.S. store counts in recent memory, as retailers aggressively trim underperforming locations while doubling down on remodels, e-commerce hubs, and higher-growth markets.

Why are so many stores closing in 2025?

Retailers are closing underperforming or redundant locations to improve profitability and optimize their real-estate footprint. Shifts toward online shopping, rising labor and lease costs, and changing customer traffic patterns are driving these decisions.

Are store closures a sign of financial trouble for companies?

Not necessarily. Many closures are part of proactive “footprint optimization” strategies. Chains like Walmart, CVS, and Macy’s are closing stores while simultaneously investing in remodels, new formats, and e-commerce infrastructure.

Which states are seeing the most closures?

California, New York, Florida, and Texas typically top the list because they have the highest store counts, so they naturally see more closures when chains consolidate locations.

Are any retailers actually opening new stores?

Yes. Even as closures rise, retailers like Dollar General, Five Below, and Aldi are expanding aggressively. The closures reflect a rebalancing of store networks, not a retail collapse.