The Great Retail Shakeout: Causes Behind the Closures
It seems that wherever you turn, stores are closing—from major national chains to beloved local boutiques—prompting many to declare a ‘retail apocalypse’.
This change shows how consumers buy things these days. Economic worries also add pressure on businesses. Companies are rethinking their physical store locations carefully. High running costs and online shopping compete heavily now.
Many established stores are announcing closure plans. Reasons given often include cutting costs. Poor sales at certain spots is another factor. How customers shop is changing widely now. This time is reshaping brand presence everywhere.
While the surge in online shopping is a big factor, it’s not the whole story; retailers are strategically closing underperforming locations to optimize their store portfolios and focus on their digital presence, adapting to a rapidly evolving market.
Big-Box Casualties: Walmart and Walgreens’ Strategic Retreat
1. **Walmart Closures**Walmart, a very big retailer, changed its store numbers a lot. They said 11 stores would close nationwide now. This was explicitly because stores did not do well for them. A spokesperson said performance wasn’t what they hoped there. Six Walmart locations reportedly closed in 2024. This included two in California and one in Maryland state. Another pair in San Diego also closed, the company noted. These did not meet financial hopes either. Places like 605 Fletcher Parkway in El Cajon closed. Also, 40580 Albrae St. in Fremont was on the list.
The closures were part of bigger changes for Walmart. Earlier they shut down many health centers. Fifty-one locations were deemed not sustainable business models. The company trying to adapt to buying things online. Walmart+ online program started in 2020 to compete well.
2. **Walgreens Closures**Walgreens pharmacy planned many store closures soon. The company announced closing 1,200 stores in total. A large number expect to close quite quickly. Walgreens plans to close 500 locations next year fiscal 2025. The total 1,200 closures should finish by 2027 close. These steps are part of their store footprint plan. They adapt to what the market is doing now. Closing stores reflects looking at how they perform. It also looks at how many stores in an area.
Downtown dwellers were sad when a Walgreens closed. This happened at the historic Olympia Building April 2024. That showed local impact of these big plans. The lease is until 2036 for that spot. Walgreens is trying to sublease it for now. This shows the company proactive real estate work.
Bankruptcy and Bailouts: Joann and Liberated Brands’ Struggles
3. **Joann Closures**Joann craft chain planning lots of store closings. They reportedly expect to close 500 stores out of 850. These closings are tied to Joann restructuring work. The company filed for bankruptcy Chapter 11 sometimes. They filed in March 2024 and again January 2025. This helped make a sale process easier. Money troubles were hard for Joann some years.
In the first bankruptcy filing March 2024, Joann got money. They secured 132 million new dollars. But they still had near 1 billion in debt. Even trying to go private, they struggled. The second filing in 2025 followed this problem. Latest plan wants to maximize value from a sale. It also reduces costs by closing stores now.
4. **Volcom, Billabong, and Quiksilver Closures**Many stores like Volcom and Billabong will close. Over 100 stores are affected by closure plans. Their parent company Liberated Brands filed bankruptcy. The Chapter 11 filing happened in Delaware. The company manages outdoor and sports apparel brands. They blamed financial trouble on economy factors. High interest rates and inflation impacted consumer spending there.
They also said shopper tastes changed. People moved to fast fashion more than branded clothes. Online shopping grew against brick-and-mortar retail. Stores are closing, but brand licenses moved. Another operator got the rights to the brands. Clothes will still be sold elsewhere. Places like Dick’s Sporting Goods will carry them.
5. Department store JCPenney has announced plans for store closures by mid-2025, stating that these decisions, separate from a recent merger, are influenced by factors like expiring leases and market shifts, though a specific list of affected locations hasn’t been confirmed yet, acknowledging the complexity of such moves.
The company expressed gratitude to the employees and customers impacted by these closures, encouraging them to continue supporting JCPenney through their remaining stores or online channels, as the company, emerging from bankruptcy in late 2020, navigates ongoing internal challenges and broader economic uncertainties affecting the entire retail sector.
Department Stores’ Digital Pivot: Macy’s and JCPenney’s Reinvention
6. Macy’s is embarking on a significant transformation, with plans to close approximately 150 ‘unproductive’ stores by 2026, beginning with 66 closures this year as part of a larger strategy to reduce its physical footprint across the nation, impacting cities like Philadelphia and Detroit.
These strategic closures allow Macy’s to redirect resources toward its more successful stores and enhance its digital operations, potentially exploring new store formats as a direct response to shifting consumer behaviors and the current challenging retail landscape.
7. The story of America’s closing stores is not one of defeat, but of evolution. From Walmart’s strategic downsizing to Macy’s digital pivot, retailers are learning that survival requires more than just adapting to trends—it demands reimagining the very purpose of physical space. As a shopper in a shuttered mall recently reflected, “Maybe the apocalypse isn’t about stores dying, but about commerce being reborn.”
Amidst the emptiness of vacant shelves, a new era for retail is dawning—one governed by the demands for convenience, unique experiences, and ecological responsibility. The central question is no longer about the survival of physical stores, but rather about the form their revival will take.
