'America Has Been Over-Retailed'— Over 8K Stores Are Gone And Even Luxury Isn't Safe As Saks, Neiman Marcus, And Starbucks Start Slashing
The calendar barely flipped to January and the retail sector already looks like it's in triage. Department stores are collapsing, coffee chains are trimming the fat, and pharmacy giants are quietly closing locations — all before Valentine's Day sales even kick in.
According to Daily Mail, which reviewed Coresight Research data, more than 8,000 chain retail stores in the U.S. permanently closed in 2025, a roughly 12 % increase from the prior year and the highest annual total on record.
Northwood Retail president Ward Kampf, told Daily Mail that "America has been over‑retailed," meaning the number of physical locations built over past decades now exceeds sustainable demand. Retail analyst Neil Saunders told Daily Mail that many companies are now pruning store networks to improve profitability and concentrate on stronger markets rather than chasing growth.
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Brick‑and‑Mortar in Flux
Closures are hitting across categories. Department stores, mall tenants, party chains, and apparel brands are all pulling back. Macy's announced plans to shutter 14 underperforming stores across 12 states, calling it a strategic move to streamline its real estate footprint and focus on digital growth.
Even luxury hasn't been spared. Saks Global, parent company of Saks Fifth Avenue, filed for Chapter 11 bankruptcy protection earlier this month. The company announced operations would continue at Saks, Neiman Marcus, and its other brands during restructuring, backed by $1.75 billion in financing.
Starbucks also began reworking its footprint after closing more than 400 locations last year. CEO Brian Niccol said the closures were tied to underperforming stores that weren't meeting customer expectations — part of a broader push to shift resources into high-volume formats like drive-thru and mobile order hubs.
Other chains, including Party City and Joann's, slashed store counts after bankruptcy filings. GameStop and Foot Locker continue planned downsizing amid strategic pivots. CVS, Claire's and Torrid are scaling back, though not exiting entirely.
Meanwhile, some value-focused chains are still expanding. Dollar General plans to open 450 new U.S. stores this year, with a strong focus on rural areas. Walmart, which saw its stock climb 25%, continues to invest heavily in logistics and delivery. Analysts say low prices and a steady demand for essentials are helping these retailers stay ahead as others contract.
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