For millions of American shoppers who prefer the tangible experience of browsing aisles, 2025 has delivered a sobering blow to the high street. Exclusive new data reveals that a record number of physical stores have shut their doors for good this year, marking a severe acceleration in the challenges facing traditional retail.
A Staggering Toll on Brick-and-Mortar
According to research shared with the Daily Mail, a total of 8,234 stores across the United States have closed permanently in 2025. This figure represents a fresh nadir for the sector, surpassing last year's total of 7,325 closures by a significant 12 percent. The analysis by Coresight Research confirms this is the highest number of shutdowns ever recorded.
The surge in closures spans a wide range of retailers, from drugstore chains and clothing outlets to craft stores. It stems from a perfect storm of pressures: relentless competition from online giants like Amazon, coupled with consumer caution as households grapple with the aftermath of high inflation and growing fears over job security and a potential recession.
While the final tally fell short of Coresight's earlier forecast of 15,000 closures, the damage has been profound. The headline number was heavily inflated by the collapse of several once-dominant national chains. Rite Aid, Joann's, and Party City—all of which filed for bankruptcy—led this year's closure list after rapidly winding down their operations across the country.
Bankruptcy Trends and New Openings
Interestingly, despite the bleak closure figures, fewer retail companies overall sought bankruptcy protection in 2025. Coresight noted that 30 retailers filed for bankruptcy this year, down from 51 in 2024. Analysts interpret this as a sign that the market is undergoing a harsh correction, with weaker operators being cleared out while stronger players manage to survive.
Other struggling brands, including CVS, Claire's, and Torrid, also featured among the top 20 for store closures, though each continues to operate a reduced number of locations. Some closures were part of long-term strategic shifts, such as GameStop's refocus on cryptocurrency trading and Foot Locker's integration after its acquisition by Dick's Sporting Goods.
Amid the wave of shutdowns, there was still investment in new physical spaces. Retailers opened 5,252 new stores nationwide in 2025. Discount chains led this charge, with Dollar General opening 611 new locations and Dollar Tree launching 442. They were followed by Circle K, Aldi, and 7-Eleven in the top five for new openings.
What Does 2026 Hold for Retail?
Shoppers hoping for a reprieve in the new year are likely to be disappointed. Coresight reports that 566 additional closures have already been scheduled for early 2026, spearheaded by long-struggling chains like Walgreens, 7-Eleven, and Dollar General. The planned closures for next year are dominated by apparel and department stores, with 15 out of 21 affected chains falling into this category. Plus-size fashion retailer Torrid is set to lead the clothing closures, with 20 shops slated to shut.
However, retail expert Neil Saunders of GlobalData offers a counter-narrative to the doom-laden headlines. In comments to the Daily Mail, he dismissed the notion of an irreversible collapse. 'The retail apocalypse is fake news,' Saunders stated. 'While it is true that we're seeing a rash of store closures, this is mostly because weaker players are dropping out of the market - because they have failed to convince consumers to shop with them.' His analysis suggests the current turmoil represents a painful but necessary market evolution rather than a terminal decline for physical retail.
