Logan Skrzypek ‘27, Student Life Editor
The retail landscape in 2025 is undergoing significant transformation, marked by the closure of numerous well-known stores. President Donald Trump’s historical tariffs have had a significant impact on the stock markets as well as the stability of many businesses’ capital. According to NBC4 Washington, “Some U.S. retailers and other importers may eat part of the cost of the tariff, and overseas exporters may reduce their prices to offset the extra duties. But for many businesses, the Trump tariffs will be too large to swallow on their own.” With this in mind, what exactly are the reasons behind these closures, the timelines, and the extent of the impact on various retail giants, including Party City, Forever 21, Joann, BIG Lots, Dollar General, Macy’s, and Kohl’s.
Party City:
Party City, a staple for party supplies and festive decorations, has announced the closure of 100 stores by the end of 2025. The decision comes as a result of shifting consumer preferences towards online shopping and the increasing popularity of e-commerce platforms. Despite efforts to bolster their online presence, Party City has struggled to compete with digital giants like Amazon. Additionally, the ongoing supply chain disruptions have led to inventory shortages, further exacerbating the company’s financial woes. The closures are expected to be staggered throughout the year, with the majority occurring in the second and third quarters.
Forever 21:
This popular store, once a beacon of fast fashion, is set to close 150 stores this year. The brand has faced mounting challenges, including declining foot traffic in malls, increased competition from online retailers, and a shift in consumer behavior towards sustainable and ethical fashion choices. The company filing for bankruptcy in 2019 was a precursor to its current struggles, and despite attempts to restructure and revitalize the brand, the adverse economic conditions have proven insurmountable. The closures will be implemented progressively, with a focus on underperforming locations in major metropolitan areas. Junior Kailyn Tosto demonstrated her thoughts on the store’s closure: “Forever 21 was my go-to store for affordable and trendy clothes. It’s really disappointing to see it close because it was a big part of my shopping routine.”
Joann:
Joann, the beloved fabric and craft retailer, has announced the closure of all of its stores by the end of April. The decision is driven by a combination of factors, including the rise of digital marketplaces for craft supplies, increased competition from specialty e-commerce sites, and the challenges of maintaining large brick-and-mortar locations. The pandemic-induced surge in DIY projects provided a temporary boost, but it was insufficient to counteract the long-term decline in foot traffic and sales. Joann’s closures will be strategically phased to minimize disruption to loyal customers, with a significant portion occurring in the first half of the year.
BIG Lots:
Known for its wide range of discount merchandise, BIG Lots plans to close 80 stores this year. The closures are part of a broader strategy to streamline operations and focus on more profitable locations. The company has faced significant pressure from e-commerce competitors and changing consumer habits, which have led to declining sales in physical stores. Additionally, rising operational costs and supply chain issues have further strained the company’s resources. The closures will be concentrated in regions with overlapping store coverage and lower performance metrics, with a phased approach to ensure a smooth transition.
Dollar General:
The popular discount retail chain known as Dollar General, is set to close 100 stores by the end of 2025. Despite the company’s overall growth and expansion strategy, certain locations have underperformed due to market saturation and shifting consumer preferences. The closures are aimed at optimizing the store portfolio and reallocating resources to more profitable areas. The decision also reflects the broader trend of consolidation within the discount retail sector. The closures will be distributed evenly throughout the year (with a focus on underperforming and unnecessary locations).
Macy’s:
Macy’s, an iconic department store chain, has announced the closure of 125 stores by the end of 2025. The decision is part of a strategic initiative to adapt to the evolving retail environment and focus on digital growth. Macy’s has faced significant challenges, including declining mall traffic, increased competition from online retailers, and changing consumer preferences. The closures are expected to impact both urban and suburban locations, with a focus on underperforming stores. Macy’s aims to reinvest the savings from these closures into enhancing its e-commerce platform and improving the customer experience.
Kohl’s:
Kohl’s, another major department store chain, is set to close 100 stores this year. The decision comes as part of a broader effort to streamline operations and focus on more profitable locations. Kohl’s has faced similar challenges to other retailers, including declining foot traffic, increased competition from online platforms, and shifting consumer behaviors. The closures will be strategically implemented to minimize disruption to customers and employees. Kohl’s plans to reinvest in its remaining stores and enhance its digital presence to better compete in the evolving retail landscape.
The wave of store closures in 2025 highlights the ongoing challenges faced by traditional brick-and-mortar retailers. Factors such as the rise of e-commerce, changing consumer preferences, and economic pressures have forced many retailers to reassess their strategies and make difficult decisions. As Party City, Forever 21, Joann, BIG Lots, Dollar General, Macy’s, and Kohl’s navigate these closures, the retail industry continues to evolve, with a greater emphasis on digital transformation and adapting to the new consumer landscape.
Lyon Life 