Retail closures are surging again in 2025, and if you’ve noticed more empty storefronts in your area, you’re not alone. A wave of store shutdowns is sweeping across the U.S., with several national retailers officially closing locations by May 25. From department store giants to neighborhood pharmacies, the shift is happening fast and at scale.
And it’s not over. According to experts, as many as 2,500 stores could vanish entirely by the end of 2025, as rising costs, shrinking foot traffic, and economic uncertainty fuel the decline of brick-and-mortar businesses.
Let’s break down which stores are shuttering this month, and what’s behind the closures.
Retail Stores Closing by May 25, 2025
1. Rite Aid
Still reeling from its first bankruptcy filing in 2024, Rite Aid is expected to shut more locations in May as it works to offload stores amid a financial restructuring.
- Over 800 stores have already closed, and Long Island locations are reportedly at high risk.
- If a second bankruptcy is filed, unsold stores may shut down for good.
- The company remains “committed to operational recovery,” but closures are expected to continue.
2. JCPenney
Once a mall staple, JCPenney has been closing locations in waves since its 2020 bankruptcy.
- At least seven stores are confirmed to close by May 25 in states like California, Kansas, North Carolina, and New Hampshire.
- A spokesperson emphasized that these are “isolated closures,” not a full-scale pullout.
3. Saks Fifth Avenue (Union Square, SF)
The luxury retailer’s San Francisco Union Square store will shut down on May 10 due to a non-renewed lease.
- The location had already pivoted to appointment-only shopping in 2024.
- Employees may transfer to Neiman Marcus or other Saks-affiliated locations in the Bay Area.
4. Family Dollar / Dollar Tree Combo Stores
After closing 600+ Family Dollar stores in 2024, parent company Dollar Tree will shut another 370 this year, including hybrid locations.
- Salem, MA is one of the first cities to begin liquidation sales at a combo store, with 50% markdowns in effect.
What’s Driving the Mass Closures?
According to Alex Beene, financial literacy instructor at the University of Tennessee, it’s a “perfect storm of bad economic factors.”
- Lower foot traffic in malls
- Rising rents on retail leases
- Declining in-store sales
- Supply chain pressures and inflation
Beene adds: “Closing not only stops the monetary bleeding, but allows companies to restructure and become more efficient.”
The Bigger Picture: 45,000 Closures Predicted
A UBS report projects that the U.S. will lose around 45,000 retail locations over the next five years. Categories hit hardest so far:
- Apparel
- Electronics
- Book & music stores
- Home furnishings
- Sporting goods
- Specialty/hobby shops
However, not every brand is struggling. Retailers like Walmart, Target, Costco, and Home Depot are expected to continue expanding thanks to strong e-commerce integration and efficient logistics.
What This Means for You
- Expect more liquidation sales through summer 2025.
- Fewer in-store options in malls and suburban retail parks.
- More brands shifting online, as seen with Bed Bath & Beyond’s complete e-commerce transition.
As this retail reshuffling continues, experts recommend checking whether your local store is closing and taking advantage of markdowns during liquidation events. While the closures may be a blow to community shopping experiences, they also mark a significant pivot in how, and where, Americans shop.
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