Major Retailers Face Absorption or Closure as Economic Pressures Mount

NEW YORK, NY — As 2025 unfolds, several prominent retailers are facing significant challenges, leading to widespread closures and liquidation sales across the nation. Companies like Big Lots, Party City, Joann, and Macy's are entering the final phases of their exit strategies after facing mounting economic pressures.

Big Lots filed for Chapter 11 bankruptcy in September 2024 and is now closing all of its remaining stores. According to Axios, the company struck a deal in December 2024 that will allow hundreds of its locations to remain open under the management of Variety Wholesalers, which has plans to convert some stores into Maxway and Rose Discount Stores. Despite the closures, Big Lots continues to offer steep discounts of 50 to 80% off its merchandise.

Tony Spring, CEO of Macy’s, announced in January 2025 that the department store chain would close 66 underperforming locations as part of a strategy to focus on its most profitable stores. “Closing any store is never easy, but as part of our Bold New Chapter strategy, we are prioritizing investments in our go-forward locations,” he stated.

Meanwhile, Party City, which filed for bankruptcy in January 2023, officially announced in December 2024 that it would close all its stores nationwide, marking the end of its 40 years in business. CEO Barry Litwin acknowledged the difficult decision but emphasized that “it’s necessary to commence a winddown process immediately” due to persistent inflationary pressures impacting consumer spending.

In a similar vein, Joann, the craft retail giant, declared the closure of all 800 stores nationwide in February 2025. Interim CEO Michael Prendergast stated, “The Board and management team have continued to execute on initiatives to manage costs and drive value,” but the company failed to secure a buyer to maintain operations.

Coresight Research predicts that this year could see as many as 15,000 retail store closures across the United States. This projection reflects a troubling trend in the retail sector, which saw 7,325 closures in 2024—marking the highest number since 2020.

The retail landscape is further complicated as Walgreens announced its intent to close 1,200 underperforming stores across the U.S. over the next three years. Tim Wentworth, CEO of Walgreens Boots Alliance, stated the company is focusing on stabilizing its retail pharmacy business to enhance its long-term viability.

Additionally, CVS disclosed plans to close 900 stores over a three-year period, with ongoing assessments to determine which locations will be shuttered. This strategy aligns with their broader commitment to expand health care services.

As retailers grapple with too many locations and fluctuating consumer demands, the impacts are being felt not only in corporate offices but also among employees facing uncertainty in their jobs.

In the face of these developments, experts and consumers alike are left to navigate a rapidly evolving retail environment.