Retail stores across the United States are closing at a much faster rate. From neighborhood staples to national chains, early 2025 has seen a surge in shuttered locations. Leading the trend are budget-friendly giants and pharmacy mainstays like Dollar General and Walgreens, both of which closed significantly more stores than they opened in the first month of the year.
Dollar General and Walgreens Lead Retail Closures
Dollar General made a sharp reversal in January 2025, closing more stores than it opened. The discount retailer added just nine new locations while shutting down 27, according to ScrapeHero.com. This marks a significant shift from last summer when the chain dominated expansion efforts with 72 openings and only five closures.
Walgreens also saw substantial cutbacks, shuttering 36 locations across the East Coast, South, and Midwest in January. These closures followed 58 store shutdowns in November 2024 and 12 more in December of the same year, reflecting an ongoing downsizing trend.
Overall, the U.S. retail sector experienced 18 new store openings this January, while 82 stores closed nationwide.
Retail Openings and Closures in January 2025
Here’s a breakdown of store openings and closures by major chains in January 2025, as reported by Supermarket News.
- Albertsons: 1 opened
- CVS: 3 closed
- Dollar General: 9 opened | 27 closed
- Dollar Tree: 2 opened | 4 closed
- Giant: 1 closed
- Rite Aid: 1 closed
- Safeway: 1 closed
- Save A Lot: 2 opened | 4 closed
- Vons: 1 opened | 2 closed
- Walgreens: 1 opened | 36 closed
- Walmart: 3 closed
- Whole Foods: 2 opened
These data from ScrapeHero.com highlight a stark contrast between growth and contraction, as some retailers continue expanding while others scale back operations in response to shifting market conditions.
Retail Store Closures Surge as Industry Faces a Pivotal Shift
The year 2024 has witnessed a significant upheaval in the U.S. retail sector, characterized by a dramatic surge in store closures and bankruptcies. Research firm CoreSight reports over 7,100 store closures through November, marking a 69% increase compared to the same period in 2023. This alarming trend is further underscored by the 45 retail bankruptcies filed this year, a stark contrast to the 25 recorded throughout all of 2023.
The closures come despite strong consumer spending, which has helped bolster overall economic growth. However, signs of strain are emerging, as inflation-conscious shoppers cut back on discretionary purchases or become more selective in hunting for deals. While major retailers like Walmart continue to attract cost-conscious consumers, other chains are struggling to adapt to shifting spending habits.
“There is not enough growth in the retail market for every player to do well, which is why we are seeing polarized results,” Neil Saunders, an analyst with GlobalData, told CBS MoneyWatch in December 2024. “However, many of the chains closing stores are those that have problems which go beyond the economy. Their propositions might not be right, their offers might not be what consumers want, and they might not have responded to competitive threats in the right way.”
According to CoreSight’s data, drugstores and discount retailers account for the largest share of closures. Pharmacy closures have been an ongoing issue, with more than 7,000 shuttered since 2019, according to data from the University of Pittsburgh, cited by the Associated Press. Discount stores, meanwhile, have struggled to attract price-sensitive shoppers while operating in what Saunders described as “a poor selling environment.”
What’s Next for Retail?
Saunders noted that the retail market could stabilize in 2025, though additional closures remain likely.
“Retailers are trying to get their finances and operations in order. This has been a year season of change after several years of disruption,” he said in December 2024. “I think these things tend to go in cycles and we are currently in a bit of a down cycle for store closings.”