The Retail Reckoning: Major Chains Announce Store Closures Heading into 2025

A seismic shift is underway in the retail and restaurant sectors, as numerous household names grapple with evolving consumer habits, mounting financial pressures, and strategic realignments. The year 2024 has already seen a significant number of store closures, and the trend shows no signs of slowing down as we look towards 2025.

From beloved pharmacies to iconic casual dining establishments, many familiar storefronts are disappearing, signaling a challenging era for brick-and-mortar operations.

Pharmacy giants are among those feeling the squeeze. Walgreens, for instance, has announced plans to shutter another 60 stores, following a series of previous closures.

Rival CVS is even more aggressive, aiming to close 300 locations by the end of 2024 as part of a broader strategy to optimize its retail footprint. Rite Aid, already navigating bankruptcy, continues to pare down its store count significantly, impacting communities nationwide.

The apparel and specialty retail sectors are also facing immense pressure.

Foot Locker is strategically closing 400 underperforming locations to focus on more profitable ventures. Rue21, a popular teen apparel retailer, is undertaking a complete liquidation, effectively closing all 540 of its stores. Similarly, The Body Shop has filed for bankruptcy, leading to the closure of 30% of its stores, while Express, another well-known apparel brand, is shutting down approximately 100 locations following its own bankruptcy filing.

Discount retailers are not immune to these trends.

The once ubiquitous 99 Cents Only Stores are liquidating all 371 of their locations, a stark reminder of the challenges facing budget-friendly chains. Even long-established sporting goods retailer Modell's, though already a past casualty, serves as a poignant example of the difficulty even large chains face in today's competitive landscape.

The casual dining segment, a staple of American culture, is also in flux.

Red Lobster, a seafood icon, has filed for bankruptcy and is closing 93 locations. Boston Market, once a widespread rotisserie chicken chain, has dramatically shrunk to just 27 locations. TGI Fridays is closing 36 underperforming restaurants, while Applebee's and Chili's parent company are each planning a small number of closures.

Outback Steakhouse's parent company is also closing 41 underperforming locations, signaling a broader reevaluation across the industry.

Even fast-food giants like Starbucks, McDonald's, Burger King, and Subway are not entirely stable. While they often open new locations, they are also strategically closing others due to factors like union activity, franchisee bankruptcies, and operational inefficiencies, resulting in a net decline for some, like Subway, and continuous restructuring for others.

These closures underscore a broader narrative: businesses are adapting, often painfully, to a new economic reality where efficiency, strategic positioning, and evolving consumer demands dictate survival. The retail and restaurant landscape is clearly in a period of intense transformation, with more changes undoubtedly on the horizon.