LOS ANGELES, Jan. 1 (Xinhua) -- U.S. retailers shuttered over 8,200 stores in 2025, one of the highest numbers ever recorded in the United States, as rising tariff costs, heavy debt burdens and shifting consumer habits continue to weigh on the sector.
It represents a 12 percent year-on-year increase from 7,325 store closures in 2024, down from nearly 10,000 in 2020 tracked by Coresight Research, a retail industry research firm.
The firm told CNN that last year's closures affected nearly every segment, including pharmacies, department stores, coffee shops, discount retailers and restaurants. TheStreet.com, a financial news and literacy website, said Tuesday that the downward trajectory observed in 2024 appeared difficult to reverse, even in 2026.
Listed company announcements and other publicly available information indicated that at least 30 U.S. retail chains filed for bankruptcy in 2025.
Several major retailers cited tariffs on imported goods as a primary factor behind their closures. Outdoor retailer Orvis announced 36 store closures by early 2026, with President Simon Perkins referring to an "unprecedented tariff landscape."
Similarly, children's clothing retailer Carter's unveiled plans to close 150 stores over the next three years, stating that "elevated product costs, in part due to the impact of higher tariffs" had significantly affected its operations.
The home decor chain At Home filed for bankruptcy in June 2025 and closed about 30 stores, with its chief executive citing "an increasingly dynamic and rapidly evolving trade environment."
The Tax Foundation, an independent research organization, estimated that the average American household faced an additional 1,200 U.S. dollars in costs due to tariffs in 2025.
Heavy debt loads, often stemming from leveraged buyouts by private equity firms, were another major factor.
Craft retailer Joann shut roughly 800 locations after its second bankruptcy within a year, burdened by more than 1.1 billion dollars in debt under private equity ownership.
Pharmacy chain Rite Aid, once among the largest in the United States, closed nearly 1,300 stores and went out of business in October 2025.
Discount retailers were also hit hard. Big Lots filed for bankruptcy and closed more than 300 stores as lower-income consumers cut back on spending, while discount chain 99 Cents Only liquidated all 371 stores, eliminating 10,800 jobs. Bargain Hunt closed all 92 stores after filing for bankruptcy in February 2025.
According to S&P Global Market Intelligence, 717 U.S. companies had filed for bankruptcy by November 2025, the highest number in 15 years.
The discount sector underwent significant restructuring as well. Dollar Tree closed approximately 1,000 stores, selling its Family Dollar brand for approximately 1 billion dollars after acquiring it for 9 billion dollars in 2015. Dollar General closed 141 stores, citing the challenges of operating in urban areas.
Traditional department stores and apparel retailers continued their long-term contraction. Macy's announced plans to close 150 stores by the end of 2026 as part of its "Bold New Chapter" strategy. Discount luxury retailer Saks Off 5th announced 10 store closures beginning in January 2026 in cities including Austin, Chicago and Washington, as parent company Saks Global struggled with significant debt.
Pharmacy chains Walgreens and CVS pressed ahead with multi-year closure plans, dampening U.S. healthcare availability. Walgreens is closing 1,200 stores over three years, with approximately 500 shuttered in fiscal year 2025. CVS closed more than 270 locations in 2025, bringing the total closures since 2022 to more than 1,170. Researchers said these closures have created "pharmacy deserts," with 48.4 million residents living in areas with limited access to pharmacies.
Food and beverage retailers also retreated from urban areas amid changing work patterns. Starbucks closed approximately 400 stores as part of a 1 billion-U.S.-dollar restructuring, including 42 locations in New York City, where it lost its position as the largest coffee chain to Dunkin' Donuts, due to increased competition, remote work and higher operating costs.
Convenience store chain 7-Eleven closed more than 500 locations since 2024, citing declining foot traffic and falling cigarette sales. Fast food chain Wendy's announced plans to close 200 to 350 restaurants through 2026 after reporting a 4.7 percent decline in same-store sales.
Other sectors also reported notable closures. Kroger, the largest U.S. supermarket chain, announced plans to close 60 stores over the next 18 months. Target said it would end its partnership with Ulta Beauty in August 2026, closing approximately 600 shop-in-shop locations in the process.
Looking ahead, Forbes warned in an article that the vulnerability of specialty retail in the United States would reach a breaking point in 2026.
"High interest rates, persistent shifts toward online shopping, and aggressive competition from mass merchants and value retailers will push overleveraged companies into insolvency. Retailers carrying substantial debt loads face the greatest risk," Forbes predicted. ■