Coresight Research, a leading research and advisory firm specializing in retail and technology, has released its much-anticipated predictions for store openings and closures across various sectors in the United States for 2025. Following a sharp rise in store closures in 2024, the firm forecasts an even greater escalation in closures this year, estimating that approximately 15,000 stores may shutter operations. Meanwhile, store openings are expected to remain relatively stable, with projections indicating about 5,800 new retail locations opening nationwide in 2025.
This forecast builds on a challenging year for brick-and-mortar retail in 2024, which saw 7,325 store closures—the highest number recorded since the pandemic-driven disruptions of 2020, when nearly 10,000 stores closed. However, 2024 also marked a bright spot, with 5,970 store openings—the highest number since 2012, when Coresight Research began tracking this data. Despite this, the year ended with a net loss of 1,355 stores as of January 10, 2025, underscoring the ongoing struggles of traditional retail formats.
Economic Pressures and Consumer Behavior Shifts
“Inflation and a growing preference among consumers to shop online to find the cheapest deals took a toll on brick-and-mortar retailers in 2024,” said Deborah Weinswig, CEO of Coresight Research. “Last year we saw the highest number of closures since the pandemic. Retailers that were unable to adapt supply chains and implement technology to cut costs were significantly impacted.”
Weinswig emphasized that the shift in consumer behavior is a key driver of these trends. “We continue to see a trend of consumers opting for the path of least resistance. Not only do they want the best prices, but they also have no patience for stores that are constantly disorganized, out of stock, or delivering poor customer service. Companies like Shein and Temu have captured market share by offering a seamless online shopping experience where consumers can save time, money, and avoid frustration.”
Retailers that fail to adapt risk being left behind. “To remain relevant and avoid ongoing closures, retailers need to embrace technologies like artificial intelligence to deliver a better customer experience and optimize pricing,” Weinswig added.
Early Indicators for 2025
Coresight Research’s projections for 2025 are supported by early data that underscores the challenges ahead. As of mid-January 2025, over 2,000 planned closures have already been announced. Comparatively, major U.S. retailers have announced 29.6% fewer store openings and an alarming 334.3% increase in closures year-over-year.
Several high-profile retail chains are driving the elevated closure numbers. Party City, Big Lots, Kohl’s, and Macy’s are among the companies that announced significant closures late in 2024 and early in 2025. These closures are part of broader restructuring efforts or responses to financial difficulties, including bankruptcy filings.
Coresight Research categorizes these closures into three primary groups:
- Complete Liquidations: Some retailers have been forced to shutter all locations due to financial insolvency or unsustainable business models.
- Distressed Retailers: Companies undergoing Chapter 11 bankruptcy restructuring often close a significant portion of their store footprint to reduce costs.
- Legacy Retailers: Established brands are reevaluating their physical store strategies to adapt to the evolving retail landscape, often reducing the number of stores to focus on profitable locations or smaller-format stores.
The Role of Technology in Retail Survival
As brick-and-mortar retailers grapple with these challenges, technology is emerging as a vital tool for survival. Artificial intelligence, in particular, is being touted as a game-changer. From inventory management to personalized marketing, AI can help retailers cut costs, optimize pricing, and enhance the customer experience. By leveraging data analytics, retailers can anticipate customer needs, manage supply chains more efficiently, and provide seamless omnichannel experiences that bridge the gap between online and in-store shopping.
“Consumers are increasingly accustomed to the convenience and efficiency offered by e-commerce platforms,” noted Weinswig. “Retailers that can integrate similar capabilities into their physical stores will be better positioned to compete.”
Historical Trends and Lessons
The current retail landscape reflects a continuation of trends that have been building for years. The 2020 pandemic accelerated the shift toward e-commerce, but many of the underlying challenges for physical retail—including high operating costs, changing consumer preferences, and increased competition from digital-native brands—were already present.
Despite these challenges, there are opportunities for retailers that can adapt. The high number of store openings in 2024, for example, indicates that physical retail is far from dead. Instead, it’s evolving. New store concepts, such as experiential retail and smaller-format stores tailored to local markets, are gaining traction. Retailers that can innovate in these areas may find success even as others struggle.
Coresight Research’s Role in Tracking Trends
For those seeking to stay informed about the rapidly changing retail environment, Coresight Research’s weekly Store Tracker reports provide valuable insights. These reports cover store openings and closures across the U.S., Canada, and the U.K., offering a comprehensive view of the retail landscape. Additionally, the firm’s Store Tracker Databank includes historical data and detailed analyses that can help stakeholders make informed decisions.
About Coresight Research
Founded in 2018 by global retail analyst Deborah Weinswig, Coresight Research is a leading research and advisory firm specializing in retail and technology. Headquartered in New York, the company also has offices in London, Lagos, Hong Kong, Shanghai, and Mangalore, India. Coresight Research provides data-driven analysis and strategic advisory services to a diverse client base that includes retailers, brands, real estate owners, enterprise technology companies, and accelerators.
Looking Ahead
The retail industry faces a pivotal year in 2025. While store closures are expected to rise, the stability in store openings highlights the resilience and adaptability of certain segments of the market. Retailers that embrace technology, focus on customer experience, and reimagine their physical store strategies will be better equipped to navigate the challenges ahead.
As the year unfolds, Coresight Research will continue to monitor and report on these trends, offering valuable insights to help businesses and stakeholders make sense of the shifting retail landscape. For the latest updates and in-depth analyses, visit their website at Coresight Research Store Tracker.
Read more: Coresight Research Forecasts Store Openings and Closures for 2025
