US Retail Space Closures Surge to 120 Million Square Feet in 2025

Store closures in the US have surpassed 120 million square feet this year, with 5,822 closures recorded in the first six months. This is on pace to set a new record high, surpassing the old record established during the pandemic. The closures are attributed to declining store traffic and increased online shopping, with more stores expected to be closed in the coming days.

Store closures in the US have surpassed 120 million square feet this year, with 5,822 closures recorded in the first six months. This figure is on pace to set a new record high, surpassing the old record established during the pandemic. The closures are attributed to declining store traffic and increased online shopping, with more stores expected to be closed in the coming days.

One of the most significant contributors to this trend is At Home, a furniture and home decor retailer that has been struggling with crippling debt. The company filed for Chapter 11 bankruptcy protection in June, citing broader economic and retail-specific market pressures. As a result, At Home plans to close 30 stores by the end of September, including locations in New York, California, Florida, and Texas [1].

The retail sector's resilience in the face of these closures is notable. Despite persistent macroeconomic headwinds, US retail showed surprising stability in the first half of 2025, according to Colliers. Consumers kept visiting brick-and-mortar stores, and leasing in prime corridors remained active. However, this resilience was uneven, with categories tied to affordability and experiences surging, while discretionary sectors lagged [2].

Other major retailers have also been affected by the trend of store closures. For instance, Claire's, a mall accessories and ear-piercing chain, plans to shutter at least 700 stores, including all of its Walmart shop-in-shops and Icing stores. If it can't find a buyer, it could liquidate its entire 1,500 North American store fleet. Similarly, Kroger, a supermarket chain, is closing two Houston stores by the end of next month, following the closure of locations in The Woodlands and Dickinson earlier this year [3].

The trend of store closures is expected to continue, with the retail sector projected to remain stable through the second half of 2025. However, growth in store-based sales could slow, with inflation and interest rate pressures continuing to weigh on consumer volumes [2].

References:
[1] https://www.usatoday.com/story/money/2025/08/07/map-at-home-stores-closing/85550224007/
[2] https://www.credaily.com/briefs/retail-resilience-shapes-2025-consumer-trends/
[3] https://www.bisnow.com/houston/news/retail/kroger-to-close-4-houston-locations-amid-5-store-reduction-130443