The Big Picture
Record-Breaking Closures:
- In 2025, U.S. store closures are skyrocketing, with 120 million square feet of retail space permanently shut down so far (think: space for 2,000 football fields!).
- 5,822 stores closed in just the first six months of 2025 — outpacing even the pandemic’s worst years.
Why This Matters:
Empty stores mean fewer jobs, ghost-town shopping areas, and major ripple effects for local economies.
Why Are Stores Closing?
1️⃣ Financial Stress on Consumers
- Inflation is squeezing wallets. People are cutting back on spending, especially in stores.
- Example: Retailers like Claire’s (teen accessories) and At Home (home goods) are closing dozens of stores after bankruptcy filings.
2️⃣ Online Shopping Boom
- Platforms like Amazon, Temu, and TikTok shopping are dominating, leaving physical stores struggling.
3️⃣ Debt Crisis Exploding
- Student loans: Serious delinquencies (90+ days late) jumped to 12.9% — up from 8% in early 2025.
- Credit card and auto loan defaults are also rising sharply.
4️⃣ Jobs Market Warning Signs
- Unemployment claims hit their highest level since 2021, signaling layoffs are accelerating.
The Economy’s Red Flags
- Factory Activity Slumps: U.S. manufacturing is shrinking for the 5th straight month.
- Tariffs Driving Up Costs: Import taxes are at 18% vs. 2.3% in 2023 — making goods pricier for everyone.
- Expert Warning: Economist Mark Zandi says the U.S. is “on the precipice of recession.”
What’s Next?
- More closures are coming. Chains like Rite Aid, Big Lots, and Macy’s are already shrinking.
- Tip: Visit your favorite local stores now — they might not survive 2026.
Key Takeaway
This isn’t just a “retail apocalypse.” It’s a domino effect: debt + inflation + online competition = economic crisis. Buckle up — it’s going to get worse before it gets better.
Sources: Coresight Research, U.S. Labor Department, Institute for Supply Management.