Brick-and-mortar retailers are starting the new year by closing stores as consumer shopping habits continue to shift. Joann, a fabrics and crafts retailer, is closing 500 locations in 49 states as part of its second Chapter 11 bankruptcy reorganization to right-size its store footprint. JCPenney is also closing a handful of stores due to lease agreements and market changes, despite stating they do not have plans to significantly reduce their store count. These closures are part of a larger trend in the retail industry, with as many as 15,000 retail locations expected to close in 2025, nearly double the count in 2024. This trend is driven by factors such as inflation, consumer preference for online shopping, and the impact of the COVID-19 pandemic. Retailers that fail to adapt to changing consumer behavior and implement cost-cutting measures are particularly vulnerable. Online retailers like Shein and Temu are gaining market share as consumers seek convenience, savings, and better customer service. Coresight Research has already detected a decrease in new store openings and a significant increase in closures in the early weeks of 2025. Major retailers like Party City, Big Lots, Kohl’s, and Macy’s have also announced closures, reflecting the challenging retail landscape.
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