Fashion Retailer Shuts Down Another 28 Stores Amid Ongoing Struggles
Another 28 stores are closing—not from an obscure chain, but from a once-iconic fashion retailer that helped define the American mall experience.
Known for four decades of trend-driven clothing and accessories, the brand is now scaling back fast, with 50 closures planned by year’s end. This isn’t routine belt-tightening. It’s a fight for survival in a retail sector unraveling at historic speed. Consumer habits are shifting, malls are emptying out, and even the giants aren’t safe.
With a staggering 15,000 retail locations expected to shut down in 2025, more than twice the number from the previous year, this latest round of closures highlights the unforgiving economics reshaping American shopping. The real question now is which familiar names will make it through, and which ones are going for good.
Retail Closures Are Sweeping the Nation
This year, America’s retail landscape is shrinking fast. Iconic chains are vanishing as Joann Fabrics shutters all 800 stores, Macy’s axes 66 locations, and pharmacy staples like CVS and Walgreens scale back dramatically. Party City and Forever 21 are also disappearing from malls nationwide. This isn’t just belt-tightening—it’s a seismic shift.
Traditional retailers are scrambling to stay relevant as digital shopping dominates. For many, the pivot has come too late. Consumers now prefer convenience, speed, and online deals, leaving brick-and-mortar stores behind. As major brands vanish from malls, one legacy company’s struggle stands out—and it starts with a name once synonymous with cool, affordable watches.
Back When a Watch Said Something About You
Decades ago, a stylish watch wasn’t just used to check the time, it was a fashion statement. Brands that launched in the ’80s mastered the balance of accessible luxury and timeless design. Customers weren’t just buying a watch; they were investing in identity.
Visiting these stores was a tactile experience, trying on styles, feeling the leather, choosing the perfect strap. It was personal, memorable, and hard to replicate online.
But the rise of digital technology began to erode this ritual. The sentimental attachment to analog watches now feels outdated as tech reshapes our relationship with time. That shift hit the industry hard, and then came a true disruptor.
How Smartwatches Shook the Industry
Apple’s 2015 launch of the Apple Watch marked a turning point. Overnight, watches became more than accessories, they became health trackers, message hubs, and digital assistants. Traditional watchmakers tried to adapt but lacked the tech know-how to compete. Their smartwatch lines failed to gain traction.
What followed was a retreat to old-school models just as the market narrowed. Consumers now lean toward either high-end luxury watches or budget-friendly smart tech, leaving mid-tier brands squeezed. As digital integration became a must, one heritage brand found itself increasingly on the outside looking in. That brand? Fossil, and its fight for survival has been anything but quiet.
Fossil’s Fight to Stay Alive
Fossil, the Texas-based brand that once defined stylish, affordable watches, is struggling. It closed 28 stores in early 2025, dropping to 220 locations overall. First-quarter sales fell 8.5% to $233 million, continuing a brutal slide that saw a 19% drop in 2024.
CEO Franco Fogliato has refocused on classic timepieces and wholesale channels after scaling back smartwatches and direct-to-consumer efforts. The strategy improved profit margins to 61.3%, but Fossil’s biggest challenge remains: convincing consumers there’s still a place for analog watches. The closures aren’t just numbers on a spreadsheet, they’re reshaping the malls and shopping centers where Fossil once thrived.
Your Mall Is Changing Before Your Eyes
The next time you walk through your local mall and spot an empty storefront where Fossil once stood, you’re seeing retail evolution in real time. The company has methodically closed stores as leases end, minimizing costs while pulling out of underperforming areas.
But these closures leave gaps. Malls lose foot traffic, small businesses nearby suffer, and shoppers lose trusted service hubs for repairs and gift-buying. For decades, Fossil was part of birthdays, graduations, and holidays. Now, those traditions are disappearing.
But beyond the storefronts, the biggest toll may be on the people behind the counters, who suddenly find themselves without a job.
Behind Every Closure, Real People Lose Out
Fossil’s downsizing strategy has had a brutal side effect, mass layoffs. In February 2025, corporate and retail employees alike were cut as the company pushed to slash $100 million in expenses. These aren’t just statistics. They’re store managers who built loyal customer bases, sales associates passionate about their craft, and corporate workers who shaped the brand’s identity. Entire careers disappeared overnight. Customers lost trusted advisors, while communities lost familiar faces.
Suppliers and retail partners now face growing uncertainty. Fossil’s CEO remains optimistic about the company’s future, but for those pushed out in the name of efficiency, that optimism rings hollow.
Fossil Stuck Between Tech and Fast Fashion
Fossil isn’t just up against changing tastes. It’s competing with two giants, tech and fast fashion. Apple, Samsung, and Google dominate smartwatches with advanced features and seamless integration. On the flip side, trendy brands pump out low-cost accessories faster than Fossil can react. Even collaborations with designers like Michael Kors and Kate Spade can’t guarantee stability anymore.
Meanwhile, luxury watchmakers like Rolex still thrive at the top. Fossil, once a powerhouse in the mid-range market, now finds itself squeezed. Stuck between affordability and prestige, the brand is scrambling to carve out relevance before it’s completely pushed aside by faster, flashier rivals.
Why Shopping Habits Are Killing Traditional Retail
Today’s consumers have changed, and they aren’t looking back. Convenience rules, shoppers want quick, seamless, digital-first experiences. For many, that means skipping the store entirely. Younger buyers prioritize sustainability, flexible ownership, and digital recommendations. Subscription models, secondhand platforms, and fast delivery are the new norm. Social media drives buying decisions more than in-store displays.
In fact, 63% of shoppers say discounts matter more than loyalty or service. Fossil, built on browsing and brand storytelling, now feels out of step. The brand’s old retail model, hands-on, personal, in-person, is fading fast. And unless it adapts quickly, it risks becoming a relic in a market it once helped define.
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