Walk into your local shopping center today and things feel... off. It isn't just the lack of crowds or that weird smell of over-buttered popcorn and floor wax. It’s the plywood. Everywhere you look, retailers are pulling back, and the wave of stores closing in 2025 is starting to feel less like a "correction" and more like a total rewrite of how we buy stuff.
Honestly, it sucks.
We’ve been hearing about the "retail apocalypse" since like 2017, but 2025 is hitting differently because the names on the "closed" list aren't just struggling basement brands. We are talking about the heavy hitters—the anchors that literally hold these massive concrete structures together. When a Macy's or a Walgreens vanishes, it creates a vacuum.
The Reality of Retail Shuttering This Year
Retail is basically a game of musical chairs right now, and the music just stopped for a bunch of companies that couldn't figure out their debt. You’ve probably noticed that even the "healthy" stores are trimming the fat. It’s not always about bankruptcy; sometimes it’s just about cold, hard math.
Take Macy’s, for example. They aren't going out of business, but they are in the middle of a massive "Bold New Chapter" strategy. That sounds like corporate-speak for "we have too many giant buildings we don't need." They are on track to close 150 underperforming locations by 2026, with a huge chunk of those stores closing in 2025. They want to focus on their luxury brands like Bloomingdale’s and Bluemercury because, frankly, that’s where the money is.
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Then you have the pharmacy giants. Walgreens and CVS are both hacking away at their physical footprints. Walgreens announced it would close about 1,200 stores over the next three years, with 500 of those happening right now. Why? Because people are tired of waiting in line for 20 minutes to buy a $6 bottle of water that costs $3 at Target, and the pharmacy reimbursement rates are basically garbage.
Why Foot Locker and Big Lots Are Changing Everything
It’s weird to think about a mall without a Foot Locker, but they are closing hundreds of stores to shift away from malls entirely. They want "off-mall" locations. They want to be where you actually live, not where you have to park in a giant garage and walk past a shuttered Orange Julius.
Big Lots is a much darker story. They filed for Chapter 11 and the numbers are grim. We’re talking about nearly 500 locations potentially vanishing. If you’re a bargain hunter, you’ve likely seen those "Everything Must Go" banners. It’s a mess. They got hit by the "perfect storm"—inflation made their core customers pull back on spending, and their "treasure hunt" inventory style just couldn't compete with Temu or Amazon.
The Hidden Reasons Behind the 2025 Store Closures
People love to blame the internet. "Oh, everyone just buys on Amazon now."
That’s only half the story.
The real villain is often private equity and debt. Many of these companies were bought out years ago and saddled with billions in loans. When interest rates stayed high, those loans became impossible to pay back. It’s like trying to run a marathon with a backpack full of bricks. You might keep up for a few miles, but eventually, you’re going to collapse.
- Interest Rates: Still hurting companies that need to refinance.
- Labor Costs: It’s harder and more expensive to staff a 50,000-square-foot store than a small warehouse.
- Shrink: Retailers are obsessed with "shrink"—a fancy word for shoplifting and administrative errors. It’s reached a point where some locations just aren't profitable because too much inventory is walking out the front door.
Look at 7-Eleven. They recently announced the closure of over 400 stores in North America. They cited declining cigarette sales and a shift in how people snack. If people aren't stopping for a Big Gulp and a pack of Marlboros, the 7-Eleven business model starts to look a bit shaky.
What This Means for Your Neighborhood
When we talk about stores closing in 2025, we have to talk about the "zombie malls."
A mall needs anchors. If the Macy's leaves, the foot traffic drops. When foot traffic drops, the little kiosk that sells cell phone cases can't pay rent. Then the food court starts to empty. It’s a death spiral.
But it’s not all bad.
Some developers are getting smart. They are turning these dead stores into "medical malls." Instead of a JCPenney, you get a sprawling outpatient clinic or a high-end gym. It’s weird, sure, but it’s better than an empty parking lot.
How to Handle the Retail Shift
If your favorite store is on the chopping block, you have to be smart about how you shop there during the final days.
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- Check Your Gift Cards: Seriously. Do it now. If a company files for Chapter 7 bankruptcy, those gift cards basically become expensive bookmarks. Even in Chapter 11, there’s usually a strict deadline for when they stop accepting them.
- Watch the Discounts: Liquidation sales start small. 10% off is a joke. Wait until it hits 40% or 50%, but don't wait for 90% because by then, the only thing left will be broken coat hangers and XXL holiday sweaters from 2022.
- Warranty Issues: If you buy a big-ticket item from a closing store, make sure the manufacturer’s warranty is valid. The store won't be there to help you if that TV dies in six months.
The Survival of the Fittest
The retailers that are winning right now are the ones that give you a reason to actually leave your house. TJX Companies (TJ Maxx, Marshalls) are doing great because people still love the "hunt." You can't replicate the feeling of finding a designer jacket for $40 on a website. It’s a dopamine hit.
Walmart and Target are also holding strong because they've turned their stores into mini-distribution centers. You order on the app, you drive up, someone puts it in your trunk. It’s seamless. The stores that are closing are the ones that stayed stuck in 1998, hoping that "customer service" alone would save them while their websites looked like they were built on Geocities.
Actionable Steps for the 2025 Retail Landscape
The era of the "everything store" is fading. As we move through 2025, expect more consolidation. If you want to protect yourself as a consumer and make the most of this transition, here is what you actually need to do:
- Audit your loyalty points. Companies like Express or LL Flooring (formerly Lumber Liquidators) have gone through massive changes recently. If you have points sitting in an account for a retailer you haven't visited in a year, use them before the "restructuring" announcement hits your inbox.
- Shift to "Omnichannel" brands. Support the retailers that have a strong balance between a great app and a clean physical store. These are the survivors.
- Keep an eye on the "Off-Price" sector. If you’re looking for deals as stores close, remember that much of that unsold inventory often ends up at places like Ross or Burlington. You don't always have to fight the crowds at a liquidation sale.
- Monitor local zoning news. If a major anchor store in your town is closing, pay attention to what's replacing it. This can affect your property value and your daily commute. Apartments and "mixed-use" spaces are the most common replacements for big-box retail in 2025.
The landscape is changing fast. It’s messy, it’s a little sad, but it’s the natural evolution of how we live now. The stores that survive will be the ones that actually respect your time and provide value that a screen simply can't.