The number of stores closing in 2025 shows that the retail market is evolving. According to Coresight Research, about 15,000 stores are expected to close this year. That is more than double the number of closures in 2024 at 7,325. Surprisingly, that’s the highest number since the covid pandemic when nearly 10,000 stores ceased operations. The top five retailers that have announced the most closures this year are Party City, Big Lots, Walgreens Boots Alliance,7-Eleven, and Macy’s respectively. What’s remarkable is these lapses aren’t happening because people are spending less money. In fact, consumer spending went up last year by 4% with holiday sales hitting almost $1 trillion. The issue is retail giants like Walmart, Amazon, and Costco are drastically growing their market share by offering unbeatable convenience and lower prices. This has left smaller chains and specialty stores unable to compete. As John Mercer from Coresight pointed out, it’s clear that competitive dynamics, rather than demand, are driving this trend.
It’s interesting to see how connected everything is and how
the actions of one entity can impact the other. For example, when a
large retailer like Macy’s shuts down at a mall, the smaller stores around it can’t
survive because there’s a loss of foot traffic. This means smaller retailers
will face a decline in sales which translates to them struggling to cover their
cost of operations and then eventually being forced to close permanently.
Macy’s plans to close 150 stores by 2027, with about 50 projected to shut down yearly
since 2024. The abandoned spaces get renovated into gyms, clinics, or even apartments
instead of new stores. On the brighter side, it’s encouraging to see that 5800
new stores are projected to open this year. Chains like Aldi, JD Sports, Pandora,
and Barnes & Noble are expanding which shows that retailers who adapt to
shifting consumer preferences can thrive. This indicates that while the retail
industry is shrinking, new models and measures can still be established to
ensure survival and growth.
source :
https://www.cnbc.com/2025/01/23/store-closures-rise-led-by-party-city-big-lots-walgreens.html
6 comments:
The record number of stores projected to close this year is a sign of an unforgiving retail market. When giants such as Amazon and Walmart dominate the market it leaves little room for smaller businesses to operate. I think that the chains that are expanding are finding a niche to work in that allows them to have success even when people have existing alternatives. The retail industry will continue to evolve and stores and companies will have to find ways to maintain a market presence even in light of the largest retailers.
I find it interesting to see how consumerism evolves over the decades. To think that malls were the next big thing back in the 80s is crazy because the idea of a mall today has changed so much with the presence online shopping. This idea of creative destruction makes me wonder what the next invention will be that causes online shopping to die off, and will we be alive to see it happen?
It's clear that the retail market is changing fast. While store closures are tough to see, it's good to know new stores are opening and adapting to consumer needs. Retailers must innovate to stay competitive in this evolving landscape.
It's interesting how the retail landscape is shifting. While closures are on the rise, especially among big chains, it's clear that those who can adapt to changing consumer demands like Aldi and Barnes & Noble are still finding success. It shows that even in a shrinking market, there are opportunities for growth with the right strategies.
You hit the nail on the head with your analysis of the current retail market. I see this happening in the Delaware and greater Columbus area constantly. Seeing how consumers shopping preferences have shifted in the past decades is extremely fascinating: from busy shopping malls that have turned into empty parking lots to the craze of online shopping. This is just a further proving point that if you can not adapt to the changing times then you will fall behind and eventually become unwanted, irrelevant, and have to close down.
The massive increase in store closures for 2025 is fascinating, especially since consumer spending actually went up last year. Retail giants like Walmart, Amazon, and Costco are dominating the market, making it tough for smaller chains to compete. While 15,000 store closures sounds alarming, it's interesting that new stores are still opening, showing the retail industry is adapting to changing consumer preferences. It'll be intriguing to see how smaller retailers survive in this competitive landscape.
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