Additional Coverage:
- Retail store closures have surged across the US — experts warn things are about to get worse (marketrealist.com)
Retail Rollercoaster: Store Closures Mount, Experts Warn of Bumpy Ride Ahead
The retail landscape in the United States is facing an unprecedented shake-up, with a surge in store closures already marking 2025 as a challenging year. Now, industry experts are sounding the alarm, predicting an even rockier 2026 as rising costs, evolving consumer preferences, and economic uncertainties continue to reshape how Americans shop.
The past year saw tens of thousands of retail locations shutter their doors nationwide as popular chains grappled with the need to reduce their footprint and maintain profitability amidst persistent inflation. The first two weeks of January alone witnessed several major retailers, including iconic department store Macy’s and luxury giant Saks Global, announcing significant closures or filing for bankruptcy. This early trend underscores the stark warnings from experts, who suggest the 2025 closures were merely the tip of the iceberg.
Ward Kampf, president of Northwood Retail, offered a candid assessment, telling the Daily Mail, “America has been over-retailed.” He elaborated on this point, explaining that years of focusing on “growth, expansion, and development” have given way to a new priority: “profitability, performance, and margins.” This shift is further compounded by a significant change in consumer habits, with shoppers increasingly gravitating towards warehouse clubs like Costco and Sam’s Club over traditional department stores.
Neil Saunders, managing director at GlobalData Retail, echoed this sentiment, stating that top companies will be compelled to continue reducing their store count well into 2026. Saunders views these closures as a necessary strategic move for businesses to remain competitive in an environment of escalating costs. “Part of this involves closing underperforming stores that are not producing sales growth or contributing to profits,” he noted, adding that such actions can ultimately “keep store portfolios lean” and resilient.
The seeds of this retail transformation were sown during the COVID-19 pandemic, when a rapid pivot to online shopping fundamentally altered consumer behavior. This, coupled with an increasingly competitive market and a vast array of choices, has led to a slowdown in growth across nearly every sector. Saunders emphasized that many companies are strategically utilizing store closures to address this imbalance and adapt to the new market realities.
Data from Coresight Research paints a clear picture of the trend. In 2025, over 8,200 retail stores across the US closed their doors. Looking ahead, the organization reports that approximately 566 stores already have confirmed plans to shut down in 2026, with well-known brands such as Walgreens, 7-Eleven, and Dollar General among those impacted.
As the retail sector navigates these turbulent waters, consumers can expect to see further adjustments in their local shopping landscapes, reflecting a broader industry push for efficiency and profitability in a rapidly changing economy.