SEVERAL retailers are shutting down locations this month as experts note that thousands more could vanish by the end of the year.
Mass closures and bankruptcies have become almost commonplace in recent years for some brick-and-mortar operations.
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Specifically, mall-based stores, department stores, and specialty retailers are trimming their footprints amid economic instability and changes in consumer spending habits.
Malls have specifically taken hits, with about 1,170 closed each year between 2017 and 2022, according to data from Capital One Shopping.
American shoppers have been trending toward e-commerce for some time, and many companies continue to reassess their in-person availability.
Some also haven’t been able to turn financial woes around and filed for bankruptcy over the past year.
Read More on Store Closures
RITE AID
Rite Aid has reportedly been nearing a second bankruptcy filing and continues to restructure in May with more closures.
It emerged from the first filing in September 2024 after cutting $2 billion in debt and going from a public to private operation.
The pharmacy chain also closed at least 800 locations during the bankruptcy proceedings.
While an exact closure list for May is unclear, several Rite Aid locations in Long Island, New York, are at risk after rental agreement issues.
Should the second bankruptcy be filed by Rite Aid, more locations will be sold off, with any unsold ones shuttering for good.
Either way, a Rite Aid spokesperson said the company was still “committed to becoming financially and operationally healthy” in a statement to Newsweek.
“Demand for our products and services remains strong, and we continue to serve our customers with the same high-quality service they have come to expect from us.”
The spokesperson added that a “decision to close a store is not one we take lightly.”
JCPENNEY
JCPenney is another brand that filed for bankruptcy about five years ago on May 15, 2020.
The retailer noted a sales decline for years, but attributed struggles due to the COVID-19 pandemic as a final blow to its situation.
US braces for ‘45,000 store closures’
Some 45,000 bricks-and-mortar stores could close in the next five years, experts have warned.
Several major retailers have announced store closures or gone out of business altogether in recent years.
In 2023, chains such as Foot Locker announced plans to close up to 400 outlets by 2026.
While, other well-known retailers like Tuesday Morning and Mitchell Gold + Bob Williams filed for bankruptcy in 2023.
Bed Bath & Beyond has closed all of its brick-and-mortar stores and is now an online-only retailer.
The most affected retailers have been clothing, consumer electronics, sporting goods, hobby, book, music, and home furnishing stores since the start of 2019.
UBS has predicted the total number of retail stores will drop by 45k from 958k to 913k.
Despite that, the report says that certain stores should thrive while others decline.
It said retailers such as Walmart, Costco, Home Depot, and Target, could be among the winners.
Over 200 JCPenney stores closed as it restructured and re-emerged from bankruptcy, but more will close on or before May 25, 2025.
At least seven locations in California, Denver, Idaho, Kansas, New Hampshire, North Carolina, and West Virginia are on the list, per USA Today.
A JCPenney spokesperson also noted that the closures were “isolated,” with no “plans to significantly reduce our store count” while speaking with the publication.
“Individual closures in specific markets happen from time to time due to expiring lease agreements, market changes or other factors.”
SAKS FIFTH AVENUE
It was also announced recently that Saks Fifth Avenue, a beloved department store at Union Square in San Francisco, California, would close down on May 10.
The lease is expiring and will not be renewed, and Saks Global told The US Sun it was focused on “long-term growth” in other areas moving forward.
“While we saw meaningful engagement and success through the appointment-only format, we have made this decision as part of our integration process as we focus on long-term growth.”
Saks Global changed to an appointment-only shopping model in 2024 and noted there would be opportunities for staff to transfer to Neiman Marcus San Francisco.
It also still serves the Bay Area through another Neiman Marcus and a Fifth Avenue Club in Palo Alto, along with its websites.
FAMILY DOLLAR
Dollar Tree closed about 600 Family Dollar locations in 2024, and another 370 are set to shutter this year when leases expire.
The closures come after Dollar Tree confirmed in March that it would be selling off Family Dollar stores for $1 billion to a private equity firm.
A unique combination of a Dollar Tree and Family Dollar in a 27,000 square-foot space has already begun the shutdown process.
Shoppers saw 50% off liquidation sales at the store in Salem, Massachusetts, which was quite literally split down the middle, with one half being Dollar Tree and the other Family Dollar.
FUTURE GRIM?
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, said that all of the closures from the retailers come amid a “perfect storm of bad economic factors” in a conversation with Newsweek.
“Foot traffic is down, sales have seen steep declines, and rents for these locations have more than likely seen significant increases,” Beene emphasized.
“When you are getting hit on all sides financially, the best solution unfortunately can be to close the operation.”
“Closing not only stops the monetary bleeding, but it allows the company to restructure their offerings and become more efficient,” he added.
There are also at least 2,500 other closures from a variety of retailers that are expected to close across the United States by the end of 2025, per The Mirror.
President Donald Trump’s global reciprocal tariffs are also causing concerns.
At least five grocery essentials are expected to have significant price hikes in the coming months.
Discount retailers like Five Below have also taken drastic actions to mitigate the impact on costs.