Retail stores have been struggling for years. There are a variety of reasons why this is happening, including the rise in online shopping, customers choosing to purchase items secondhand, and rising rental prices in several states, which could make it difficult for stores to turn a profit.
Companies also know that they don’t necessarily have to have brick-and-mortar stores to make money. These buildings cost money, as does staffing them. When looking at their costs, businesses are making changes. Here are five huge retailers that are eliminating stores around the country.
Foot Locker
Foot Locker has been a staple in shopping malls for decades, and the retailer also has stores outside the mall as well. These stores, which feature employees in referee shirts, have long been a must-visit for sneakerheads when they visit the mall.
Malls are struggling in the new economy, however, and as malls close, Foot Locker has also had to close stores. In 2025, the sneaker store is expected to close 400 locations of both Foot Locker stores, as well as sister store Champs Sports, also a staple of shopping malls.
Sneaker Culture is Huge, But That Isn’t Helping Foot Locker
Sneakers have never been more popular. Whether it’s a new pair of Jordans, a classic street shoe like the adidas Stan Smith, or fancier sneakers from Rothy’s or Veja, people are wearing sneakers more than ever before. And those customers are willing to shell out big bucks to stay in the latest fashion.
It just doesn’t look like those people are willing to spend their money at Foot Locker. It has been much easier for people to buy the latest shoes online. Sites like eBay even offer authentication services to make sure that the expensive sneakers are authentic. And that has resulted in significant closures for Foot Locker.
7-Eleven
Almost every town in America features at least one convenience store. And in many locations around the country, that convenience store is a 7-Eleven. The chain was originally founded in 1927 as the Southland Ice Company and has since grown into a global powerhouse with nearly 80,000 stores around the world.
One might think that a store like 7-Eleven would be immune to the issues other stores are facing, as there is constant foot traffic and the items are affordable. But the chain is facing some of the same problems as other retail businesses are currently dealing with.
The 7-Eleven Slump is Partially Attributed to Nicotine Sales
Since opening its first store in the 1920s, 7-Eleven has sold tobacco products in stores. And these are very profitable products for the chain of convenience stores. High-margin items, such as cigarettes, allow the store to sell other items at a lower cost, driving foot traffic into the stores.
There has been a multi-decade push by numerous organizations to stop people from smoking. According to a 2023 study, only 11% of Americans smoke cigarettes, an all-time low from when the surveys began. Those numbers are hurting 7-Eleven’s bottom line and causing the chain to close stores.
Macys
Macy’s is one of the most iconic stores in American history. The first department store was opened in New York City in 1858, and eventually a flagship was built on West 34th Street and 6th Avenue.
And for more than 150 years, people have shopped at Macy’s mostly for clothing, but for many other items as well. Macy’s has been the place where many people got their first suit or favorite dress, but many people in the future will have to look elsewhere as the company is closing many stores across the country.
Macy’s Is Largely Associated With Shopping Malls
The reason Macy’s is slipping is not so much about how it does business or what it offers, but about where they are located. Macy’s stands as the anchor store at many malls, and this is a terrible time to be doing business from a mall.
The chain is not only closing stores in small areas but also in major metropolitan areas. Among the locations where stores will be closed in 2025 are Mesa, Arizona; Los Angeles, California; Baltimore, Maryland; Kansas City, Missouri; and Houston, Texas.
CVS
There was a time in the country when nearly every town in America had its own independent pharmacy. These pharmacies were places where townspeople could not only pick up their medication but also shop for many other goods, including clothes, toys, and home essentials.
Many of these neighborhood pharmacies were run out of business by chains like CVS, Walgreens, and Rite Aid. These bigger chains were able to run on lower profit margins and eliminate those stores that came before them. And the chain stores were able to continue to grow for several decades.
Retail Pharmacies Have Been Hit Hard in 2025
There are several reasons why chain pharmacies are having issues in 2025. Inflation has bedeviled many different stores and has come and gone in waves since the 2020 pandemic. It has also become much easier for people to access healthcare online, mitigating the need for local shops.
Like its competitors, Walgreens and Rite Aid, CVS is closing a large number of stores over the next year, 271 locations, to be exact. And it is not likely that these pharmacies will be replaced, as the advent of telehealth and online pharmacies has made the storefronts less necessary.
Kohl’s
One might think that Kohl’s, a discount department store, would thrive in a period where inflation is driving people away from luxury stores. Kohl’s has been an ideal space for bargain-seeking shoppers since its inception in 1962.
Despite its current advantages, Kohl’s will be cutting 27 stores in 2025. The company says that the closures are part of a larger plan to improve the business’s health. Interestingly, most of these closures are in California. Affected towns include: San Diego, Mountain View, San Luis Obispo, and Encinitas.