In January 2025, Coresight Research released its retail closure predictions for 2025: 15,000 stores are expected to close¹ this year, with announced openings down by 29.6% and closures up a staggering 334.3%. The causes range from Chapter 11 bankruptcy restructuring to all-out liquidations.

Some are calling it a retail apocalypse² with Big Lots and Party City at the top of the chopping block. The research also concluded that this will be the worst year in retail history since the pandemic, when a record 12,200 U.S. stores closed³ due to massive decreases in foot traffic as states went on lockdown. In 2020, retail saw a massive rise in e-commerce sales, with consumers spending over $1 out of $5 online⁴ globally.

Ironically, Joann’s is bearing the brunt of closures, despite a sewing boom⁵ in 2020 when consumers started crafting their own face masks. In fact, Joann’s saw a loss in revenue of $340 million in 2020⁶ and plans to shutter all 800 stores⁷ in 2025. This mass closure will result in over 19,000 laid-off workers⁸.

Other retailers, such as Bed Bath & Beyond⁹, are switching full-time to online. The retailer closed all of its brick-and-mortar stores after its acquisition by Overstock.com and will be stocking goods at the Container Store. Other retailers are reopening under new ownership, such as Big Lots!¹⁰, with its deal with Variety Wholesalers.

All of this news impacts retail suppliers just as much as consumers. Already, retailers are imposing new “supplier excellence” and “perfect order programs” to offset supply chain costs. Unfortunately, invalid deductions and chargebacks can occur with these programs, but luckily, some are disputable. Most retail suppliers leave 3–8% of revenue on the table to unclaimed invalid deductions. Sound like you? Get your no-risk audit today!