Brick-and-mortar retailers are expected to close 15,000 stores this year, more than double the number last year — here's why and what shoppers need to know

What stores are closing and why?

Major retailers that announced closures late in 2024 and early in 2025 included Party City, Big Lots, Kohl’s, and Macy’s.

Big Lots declared bankruptcy, and most of its stores are now closed, with only 4 locations left as of March 21, according to the company’s website.

Party City also declared bankruptcy for the second time in two years in December 2024 and is shuttering all its locations.

This month, Forever 21, the discount clothing retailer typically geared towards teenagers and young adult women, announced it filed Chapter 11 bankruptcy and is closing all its U.S. stores.

Joann, a fabric retail chain popular among craft enthusiasts, is also filing for bankruptcy and closing 500 of its stores, which is more than half the total it has in the country. Previously, you could also purchase discounted goods on its website, but it's no longer allowing online orders because there are a number of fraudulent websites.

Joann Fabrics, in its bankruptcy filing, stated it has struggled with sales since COVID-19 when people were making masks. The retailer attributed the decline in sales to “competition from online retailers and increased merchandise costs.”

Brick-and-mortar stores have found it hard to stay profitable as more people choose to go online and shop.

Coresight Research’s CEO Deborah Weinswig says that consumers want to access the best prices and “have no patience for stores that are constantly disorganized, out of stock, and that deliver poor customer service.” In its research, it has “seen Shein and Temu capture market share as consumers choose to shop online to save time, money, and avoid frustration.”

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What you can do when stores close

While store closures may not affect overall prices of goods, it does cause disruptions. For one, it may be harder to shop in person at your favorite retailer, assuming there are still locations around. However, you’d still most likely find similar items online.

It’s also a good time to browse at retailers closing locations like Joann for heavily discounted goods.

Before you head to the checkout though, be sure that these are items you’ll use and that you’re staying within budget. Stores that have filed for bankruptcy and are closing most likely won't offer refunds or exchanges.

Other store policies may also change. Joann, for example, is no longer giving discounts for teachers, healthcare workers and members of the military. If you were relying on these discounts, it may not make a huge difference if affected retailers are offering steep discounts on select items. You may want to shop around to see which place offers the best prices for items you want.

You may also have a certain window of when you can use your retailer gift cards. Forever 21 is honoring existing gift cards and any store credit you have, but you will have until April 15 to use them. Joann stopped accepting its gift cards on February 28.