Retailers across the United States are shutting down locations this month as financial pressures mount and consumer habits continue to shift toward online shopping.
Major brands including Rite Aid, JCPenney, Saks Fifth Avenue, and Family Dollar are among those reducing their footprint by May 25, 2025. Experts warn that at least 2,500 additional closures are expected nationwide before the end of the year.
Why are so many retailers closing?
Economic instability, high inflation, rising rents, and shrinking foot traffic have created a “perfect storm” for brick-and-mortar stores, said Alex Beene, a financial literacy instructor at the University of Tennessee at Martin.
“When you are getting hit on all sides financially, the best solution unfortunately can be to close the operation,” Beene told Newsweek.
Since 2019, clothing, electronics, sporting goods, hobby, and home furnishing retailers have been among the hardest hit, according to data from UBS.
Retailers closing stores by May 25
Rite Aid
Rite Aid continues its restructuring after emerging from a bankruptcy filing in 2024.
- At least 800 stores closed during bankruptcy.
- Additional closures are expected this month, especially in Long Island, New York, due to rental disputes.
- A second bankruptcy could trigger even more shutdowns.
A spokesperson said Rite Aid remains committed to serving customers but acknowledged that store closures are sometimes necessary for financial health.
JCPenney
The department store giant, which filed for bankruptcy in 2020, is closing more locations despite restructuring.
- More than 200 stores closed previously.
- New closures are scheduled by May 25 in California, Colorado, Idaho, Kansas, New Hampshire, North Carolina, and West Virginia.
JCPenney stated that the closures are “isolated” and not part of a broader strategy to downsize nationwide.
Saks Fifth Avenue
Saks will close its Union Square store in San Francisco on May 10 as its lease expires.
- Saks shifted to an appointment-only model in 2024 but cited a focus on “long-term growth” as the reason for the closure.
- Staff may have the opportunity to transfer to nearby Neiman Marcus locations.
Family Dollar
Family Dollar continues large-scale closures after Dollar Tree announced plans to sell off stores.
- 600 Family Dollar stores closed in 2024.
- Another 370 locations will close in 2025 as leases expire.
- Some combined Dollar Tree–Family Dollar stores, like one in Salem, Massachusetts, have already begun liquidation sales.
Outlook for retail in 2025
Experts forecast that up to 45,000 retail locations could shut down by 2029, with consumer spending habits increasingly favoring e-commerce giants over traditional malls and storefronts.
Despite the challenges, companies like Walmart, Costco, Home Depot, and Target are expected to continue expanding their physical presence.
For shoppers, these closures could mean fewer in-person options, more online shopping, and bigger liquidation sales as companies exit select markets.
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