'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 hardly flipped to January and the retail assemblage already looks similar it's successful triage. Department stores are collapsing, java chains are trimming the fat, and pharmacy giants are softly closing locations — each earlier Valentine's Day income adjacent footwear in.

According to Daily Mail, which reviewed Coresight Research data, much than 8,000 concatenation retail stores successful the U.S. permanently closed successful 2025, a astir 12 % summation from the anterior twelvemonth and the highest yearly full connected record.

Northwood Retail president Ward Kampf, told Daily Mail that "America has been over‑retailed," meaning the fig of carnal locations built implicit past decades present exceeds sustainable demand.  Retail expert Neil Saunders told Daily Mail that galore companies are present pruning store networks to amended profitability and ore connected stronger markets alternatively than chasing growth.

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Closures are hitting crossed categories. Department stores, promenade tenants, enactment chains, and apparel brands are each pulling back. Macy's announced plans to shutter 14 underperforming stores crossed 12 states, calling it a strategical determination to streamline its existent property footprint and absorption connected integer growth.

Even luxury hasn't been spared. Saks Global, genitor institution of Saks Fifth Avenue, filed for Chapter 11 bankruptcy extortion earlier this month. The institution announced operations would proceed astatine Saks, Neiman Marcus, and its different brands during restructuring, backed by $1.75 cardinal successful financing.

Starbucks besides began reworking its footprint aft closing much than 400 locations past year. CEO Brian Niccol said the closures were tied to underperforming stores that weren't gathering lawsuit expectations — portion of a broader propulsion to displacement resources into high-volume formats similar drive-thru and mobile bid hubs.

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Other chains, including Party City and Joann's, slashed store counts aft bankruptcy filings. GameStop and Foot Locker proceed planned downsizing amid strategical pivots. CVS, Claire's and Torrid are scaling back, though not exiting entirely.

Meanwhile, immoderate value-focused chains are inactive expanding. Dollar General plans to unfastened 450 caller U.S. stores this year, with a beardown absorption connected agrarian areas. Walmart, which saw its banal ascent 25%, continues to put heavy successful logistics and delivery. Analysts accidental debased prices and a dependable request for essentials are helping these retailers enactment up arsenic others contract.