Retail in the United States is undergoing a deep transformation: by 2025, it is estimated that more than 15,000 physical stores will close their doors. This number doubles that recorded last year, a clear reflection of the unstoppable growth of e-commerce and the evolution in shopping habits. Well-known brands like JoAnn, JCPenney, and Macy's top the list of those affected, evidencing the crisis of traditional retail.
The fall of big names
JoAnn Fabrics and Crafts has announced the total closure of its 800 stores and its online platform by the end of May. The well-known chain, a reference in crafts and design, could not withstand the digital competition and the change in consumption.
JCPenney, which is still trying to recover from its bankruptcy in 2020, continues to reduce its network. This May, it will close seven more branches, adding to more than 200 since it began its restructuring.
More closures in the discount and retail sector
Discount stores are also suffering. Family Dollar and Dollar Tree, which closed 600 stores in 2024, will continue with the reduction. Family Dollar plans to close another 370 stores and Dollar Tree, 30.
Macy's, another giant in the sector, will close 66 stores this year, aiming to close a total of 150 by 2026. This strategy is part of a plan to focus on more profitable stores and boost its digital channels.
The impact on other sectors
Walgreens will reduce its physical presence by more than 1,200 stores by 2027, with 500 closures planned just for 2025. Party City will close all its branches due to its bankruptcy process. Big Lots, meanwhile, will eliminate about 500 stores as part of its restructuring.
The common denominator in all these cases is the strong competition from digital platforms like Amazon, Shein, and Temu. The main companies that will close stores throughout this year are as follows:
Big Lots: About 500 stores will close.
Dollar Tree: 30 stores will close.
Family Dollar: 370 stores will close soon.
JCPenney: 7 new branches will close in May; more than 200 since 2020.
JoAnn Fabrics and Crafts: 800 stores will close by the end of May.
Kohl's: Closure of 27 stores, although it continues to operate more than 1,100.
Macy's: 66 stores will close in 2025; 150 in total by 2026.
Party City: Total closure of all its branches.
Walgreens: 1,200 projected closures; 500 during 2025.
The rise of e-commerce and its consequences
The popularity of online shopping is due to its competitive prices, fast delivery, and convenience for the buyer, something that physical retail has not managed to match. Additionally, high operating costs—rent, salaries, logistics—make it difficult for many physical stores to remain profitable. This phenomenon affects employment, the local economy, and forces companies to adapt their models toward digital commerce.
A cultural and economic shift
The massive closure of stores not only represents an economic transformation but also a cultural one. The traditional shopping experience is being replaced by digital efficiency and home convenience. The survival of many brands will depend on their ability to adapt and offer integrated and digital experiences.