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Local Malls Face Unprecedented Store Closures as Retail Landscape Shifts
If you’ve visited a local mall recently, you’ve likely noticed a significant number of stores either shuttered or running liquidation sales. This trend is not an isolated incident but rather a widespread phenomenon impacting American retail. Over the past year, a wave of Chapter 11 bankruptcies and store closures has swept across the nation, as traditional retailers grapple with the growing dominance of online corporations.
Major chains like Macy’s, Claire’s, Forever 21, and GameStop have seen locations boarded up or disappear entirely. Beyond these well-known names, Rite Aid, Joann’s, and Party City have all filed for bankruptcy and rapidly closed their entire U.S. store footprints, signaling a challenging year for the retail sector.
Many businesses have struggled to rebound from the economic pressures of the COVID-19 shutdown and are now contending with elevated inflation and reduced consumer spending, partly attributed to President Donald Trump’s global tariff policies. This confluence of factors has created a financially challenging year for both American businesses and consumers. A December survey from The Century Foundation revealed that 66% of Americans believe the economy is underperforming, with nearly half having dipped into their savings to cover routine expenses over the past year.
2025 Sees Record-High Store Closures Despite Lower Bankruptcy Filings
While Coresight Research initially projected 15,000 store closures for 2025, the actual number came in below forecast, totaling 8,234 permanent U.S. store closures. Despite falling short of the prediction, this figure represents the highest number ever recorded, marking a 12% increase from last year’s total of 7,325 closures. The impact has been felt across a diverse range of retailers, from drugstores and bulk item chains to clothing and craft stores.
On a more positive note, Coresight Research reported a decrease in overall retail bankruptcy filings compared to the previous year. A total of 30 retail chains filed for bankruptcy in 2025, down from 51 in the prior year.
Analysts suggest this indicates that stronger business operations are managing to survive the prevailing challenges, while weaker chains are being weeded out of the market. Some chains, including CVS, Claire’s, and Torrid, have experienced store closures this year but have also managed to keep some locations open as they reassess their business strategies.
What Lies Ahead for Retail in 2026?
Despite the instability, the retail landscape also saw the opening of 5,252 new stores nationwide in 2025. Dollar General, Dollar Tree, Circle K, Aldi, and 7-Eleven were among the top chains to expand their footprint.
However, the trend of store closures is expected to persist into the new year. Coresight Research indicates that 566 U.S. shops already have plans for closure in 2026.
American consumers can anticipate seeing major chains such as Walgreens, 7-Eleven, Kroger, Dollar General, Saks Off 5th, and Abercrombie, among others, closing locations next year. The ongoing shifts in consumer behavior and economic pressures will continue to shape the future of American retail.