The last decade has been very tough for businesses in the United States. Several businesses had to shut down during the COVID-19 pandemic, hoping to secure loans from the government. Hundreds of thousands could not survive the crisis, and those businesses that did survive lost significant revenue.
In 2025, American companies are facing another crisis as President Donald Trump has ignited a trade war. Businesses that source through overseas manufacturers are worried they will have to close stores. According to reports, 15,000 stores will be closed in 2025.
America Had a Strong Recovery From the Pandemic
Once the COVID crisis was tackled, companies were expected to crawl out of it for years. But that didn’t exactly happen. The United States had a strong economic rebound after the pandemic.
Things have changed since Donald Trump won the 2024 Presidential election. He had campaigned on using tariffs to fix what he called trade imbalances between the United States and other countries. The measures were announced in April 2025, and there was a significant impact on the stock market. While all of those measures are currently on pause, the threat of those tariffs remains.
More Than Twice as Many Stores Are Expected to Close This Year
Owing to a recovering economy, many companies have thrived over the last year. Others, still hurt by the COVID crisis, were looking to rebuild. But those businesses are again in turmoil, as costs rise and profits shrink.
In 2024, it was reported that there were around 7,325 closures. That number is expected to nearly double in 2025, with 15,000 closures. And that number is just an estimate, as other factors could cause it to grow even higher.
Pharmacies Have Been Hit Hard
One of the sectors of the market most affected by the closures has been healthcare, particularly brick-and-mortar pharmacies. With more people able to shop for medications online, these stores have been hard hit. Walgreens will be closing more than 200 locations, Rite Aid more than 400 stores, and CVS will be closing 586.
With so many pharmacies shutting down, there is worry that there won’t be enough of them to serve certain communities. In some areas, shops like Wal-Mart and Target have filled the gaps with their own pharmacies, but that may not be enough to meet the needs of all Americans.
JoAnn Fabrics Will be Closing Entirely
There was an increased interest in crafts and hobbies during the pandemic as people looked for activities they could do at home. That provided temporary relief for struggling craft stores like JoAnn Fabrics. The good times would not last for long, though.
JoAnn Fabrics was a large-scale operation that operated over 800 stores in forty-nine states. After undergoing multiple bankruptcies before being purchased by a private company, the craft store will be going completely out of business. Shoppers who need to pick up fabric and craft supplies should do so before that happens.
Clothing Stores are Hurting Too
Macy’s, an American icon headquartered in New York City since 1858, operated as many as 867 stores as recently as 2018. Currently, Macy’s only has 450 locations left, and the number is continually falling.
Kohl’s has been a popular store for bargain shoppers for decades, but the chain will be closing a total of 27 stores this year.
J.C. Penney is another iconic retailer that got its start over 100 years ago, but the retailer is struggling and will be closing eight locations in 2025.
Is the Retail Model Coming to an End
Another large-scale company that filed for Chapter 11 bankruptcy and will be closing all of its locations is Liberated Holdings. The business operated several surf-style clothing brands including Volcom, Billabong, Quiksilver and Roxy. These once-popular brands will no longer have their standalone stores.
When discussing the organization’s problems, CEO Todd Hymel noted that online retailers and manufacturers can more quickly react to trends in a way that retail stores can’t. And for that reason, the brand will be closing its U.S. stores.
Discount Stores Are Also Feeling the Pain
Dollar General, a discount chain, has a massive footprint in the United States, operating more than 19,000 stores in the United States and Mexico. They are especially prominent in lower-income areas where people are most reliant on these kinds of stores.
Dollar General is feeling the economic pain, however. Earlier this year, the brand announced that they would be closing 96 of their own stores along with 45 of its Popshelf stores. This is a tough situation for people around the country who need discount stores like Dollar General as they have few other places to turn.
There Are a Variety of Reasons for the Closings
Stores aren’t only closing because of tariffs, there are other factors at play. One of those is the willingness of consumers to shop online. Many businesses have found that it’s not worth having brick-and-mortar stores in the age of online retail.
The United States has seen a reduction in inflation, but some companies just weren’t able to recover. Inflation has eased in the United States, but could rise again if the tariffs take effect. Another increase in pricing could doom both businesses and consumers.
The Impact of Private Equity Firms
Another factor in the closing of retail stores is involvement from private equity firms. These firms traditionally buy up struggling businesses, cut costs and sell them for a profit. But this tactic is much more difficult for these companies to pull off in this kind of business environment.
Now, many private firms that have acquired businesses are seeing just how difficult it is for these retailers to thrive. Instead of reviving these businesses, or rebuilding them as profitable sell-offs, they are being restructured or even liquidated.
As economic uncertainty grows and retail models evolve, 2025 could be a tipping point for how, and where, Americans shop.
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