The 7 major brands that have announced massive closures in 2025 in the United States

The United States is experiencing the year 2025 as a difficult period for retail. Traditional brands are struggling to adapt to the digital era and changes in consumer habits.

In response, several of them have decided to close hundreds of stores across the country. This wave of closures not only reflects the impact of digitalization but also the effects of inflation and the new way of shopping. Below, we present the seven major brands that have announced massive closures this year.

1. Joann Fabrics

The chain specializing in crafts and fabrics, Joann Fabrics, has been one of the most affected by the market transformation. In 2025, it announced the closure of its 800 stores in the United States. The company declared bankruptcy for the second time in less than a year.

The liquidations began at the beginning of the year and will be completed in May. Joann's downfall reflects how the decline in demand and high operating costs can lead a company to bankruptcy.

2. Forever 21

Forever 21, a youth fashion brand that once dominated the market, has closed all its stores in the U.S. The massive closure was finalized on May 1 following the bankruptcy declaration in March.

The brand, which was once a benchmark in the fast fashion sector, couldn't withstand the competition from online platforms like Shein and Temu. The high cost of operation and the drop in sales were key factors in its disappearance from the U.S. market.

3. Walgreens

The giant pharmacy chain Walgreens has decided to close 450 stores in 2025. This measure is part of a plan to reduce costs and improve operational efficiency. The decision comes after years of competition with online health platforms and the high costs of maintaining so many physical locations.

Although the closure won't affect all its stores, it will have a significant impact on local communities where Walgreens has a significant presence.

4. Party City

Party City, the chain specializing in party supplies, has also been forced to close many of its stores. In 2025, the brand will close 700 establishments. After declaring bankruptcy in December 2024, the chain failed to regain its profitability.

The rise of online shopping and changes in consumer habits regarding celebrations have severely affected the brand. Party City couldn't successfully adapt to the new times.

5. Big Lots

Big Lots, known for its discount product offerings, has announced the closure of many of its stores in 2025. Following a financial restructuring, the company will reduce its market presence. Although some stores will continue to operate under new owners, many others will disappear.

The trend toward online shopping and the high competition from other discount chains have been determining factors for this decision.

6. Macy's

Macy's, one of the country's most traditional department stores, has confirmed that it will close 66 of its stores in 2025. This closure is part of a broader plan that aims to reduce 150 stores by 2026.

Macy's has been struggling to adapt to the competition from e-commerce, where online sales have surpassed physical sales. The company has decided to focus on its most profitable locations and close those with low performance.

7. Rite Aid

Rite Aid, another major chain in the pharmacy sector, also declared bankruptcy in May 2025. The company announced that it will close all its remaining stores if it fails to find a buyer.

The saturation of the pharmaceutical market and the high competition from chains like Walgreens and CVS have led Rite Aid to this critical situation. The disappearance of this chain leaves a significant void in some communities.