How does all of this indicate the state of the economy when more than 4,100 stores close in one year? To the observant businessman or woman, this list of closed doors can represent far more than just closed doors, but rather the profile of changes in the way of the consumers, the changes in the structuring of the companies, and the change in the way of the biggest brands in America.
From coffee majors to fashion empires, these consolidations are driven by different demands, and among these are financial dynamics, market dynamics, and the need for innovation in business models. When these store closures occur, these are not one-off events, as there are always bigger plans involved, which may ultimately bring about different dynamics of consumption and dining.
The next installment of this series will analyze the players involved in the market and their respective efforts to cut costs in 2025, reasons behind their moves, and the future of the retail and restaurant industry as the market evolves.
1. Starbucks’ Sweeping Restructuring
Starbucks is in the middle of one of the largest portfolio shifts in the chain’s history, closing more than 600 stores in the total North American market as a result of a transformation referred to as the “Back to Starbucks,” according to the Starbucks CEO, Brian Niccol, who said the portfolio transformation was a result of reviewing the locations where they “were unable to create the physical environment our customers and partners expect.”
This comes amidst the company’s corporate-wide closure of stores, as well as the company’s “new mission,” which centers on the ideas of “hospitality and ambiance.” Starbucks is also implementing “uplifts” in their stores, nearly 70 completed, aiming for more than “1,000 by October 2026.” Unions are also an issue at Starbucks, where the Starbucks Workers Union has managed to get the company to agree to several demands, including “severance packages for members who are not taking the company’s new offers.”
2. Denny’s Rationalizes Its Footprint
“America’s diner” chain of diners nearly finalizes plans to shut down 150 under-performing establishments by the end of 2025. By January, it was reported that the company was on schedule because it managed to shut down 88 establishments in 2024 alone, and over 62 establishments are scheduled to shut down this year. The restructuring process is a “surgical and methodical” approach, according to the CEO, Kelli Valade.
Closures are not linked with the $620 million acquisition of Denny’s being handled by TriArtisan Capital Advisors, Treville Capital Group, and Yadav Enterprises, which is set to be completed in early 2026. There have been some new openings, which is an indicator of expansion, following the reduction in the closures experienced.
3. Zara and Inditex’s Global Store Cuts
Inditex, the huge fashion conglomerate that owns the Zara and Massimo Dutti brands and others, has reduced the total store count by 132 across the globe within the year. This comprises the cut seen at Zara stores that went down by 60, Zara Home that went down by 27, and Massimo Dutti that went down by 23.
Notably, two of its brands, Bershka and Lefties, are bucking this trend, opening new locations every year. Despite store closings, Inditex continues to enter 39 new markets, including high-profile openings in the Las Vegas Forum Shops and Zara Man in Rome.
4. Carter’s Responds to Tariff Pressures
Children’s clothing retailer Carter’s is set to close 150 stores within the three-year period. Approximately 100 locations are set to close within 2025 and 2026. The retailer will also cut 300 office-based jobs, representing 15% of its office workers, to reduce its yearly operating expenses by $35 million. Carter’s Chief Financial Officer, Richard Westenberger, cited increased tariffs as part of the reason for reduced margins.
The major factor behind these closings being a result of the expiration of leases along with Carter’s discontinuing the opening of their stores on the current business model. Palladini, the subsequent CEO, also emphasized the future plans of establishing a ‘performance-driven culture’ where they aim to cut 20-30% of the current product offerings.
5. Kroger’s Portfolio Optimization
The grocery leader Kroger is set to close around 60 underperforming stores by the end of 2026 while accelerating the opening of new stores at the same time. As part of an announcement concerning the reduction of expenses within the company, the Chairman and CEO Ron Sargent said that there was a culling of 1,000 employees within its corporate office and an evaluation of non-core assets.
Kroger is betting on AI technology to support the optimization of prices, reduction of inventory loss, and faster pickup delivery, including two-hour pickup delivery, which is currently available in selected markets. The retailer has lowered prices for over 3,500 items this year to respond to customer complaints over prices while sustaining steady margins. The company’s portfolio brands, including Simple Truth and Private Selection, are driving growth for overall brands.
6. GameStop’s Accelerated Exit from Physical Retail
GameStop that has closed a staggering 600 locations in the U.S. in 2024 alone plans a “significant” number of closures in fiscal year 2025. The move was announced while the company was in the assessment stage regarding its plan of optimization among its stores due to a 31% drop in net sales in the Q2 period due to a sharp decline in the company’s sales figures.
Analysts at Wedbush noted a lack of strategy in terms of “who could fill this business” because “secular headwinds, such as transitions from physical to digital gaming, simply do not allow for growth.” GameStop has pulled out of a number of countries across the globe, including Germany and Italy, and plans to dispose of its operations in Canada and France.
7. Victoria’s Secret’s Quiet Contraction
Though it is not extreme, like with others, Victoria’s Secret has closed approximately 30 stores in the U.S. since the start of the year 2025. The reduction in number by the lingerie retailers is linked to the current struggle the mal-based retail is going through, with footfall progressively moving to the online platform.
It would seem that the plan presented by the brand is the consolidation of geographic coverage, which corresponds with the movement to engage with the digital platform rather than extending over larger geographic areas.
8. Macy’s Long-Term Downsizing
Macy’s has announced that it will be closing its 150 lowest-performing stores by the year 2026. This move will be implemented as Macy’s undergoes a transformation within the company. Macy’s has chosen to close the stores that are not growing significantly, and the company is also striving to incorporate tech and smaller stores. This is certainly paying homage to what some legacy brands have been doing regarding the shifting consumer mindset and the need for convenience and discovery, as opposed to the traditional department store model.
9. Claire’s Bankruptcy and Store Closure
Claire’s, an accessory brand, has recently filed Chapter 11 bankruptcy and closed about 300 stores across the US. This is a part of its restructuring strategy, which includes repayment of loans and focusing primarily on successful sites located within busy mall and outlet sites. Problems faced by the brand include its connection with the current vulnerability of specialty retailers due to a change in the behavior of consumers, specifically the Millennial generation, favoring e-commerce platforms and fast fashion.
An increase in retail and restaurant closures in 2025 marks the beginning of this new era. Although some businesses are merging to ensure the sustainability of their profit-making ability, it can be noticed that this is the exact moment for other brands to profoundly change their perception and prepare for the coming ages. Analyzing it from the consumer end, this signifies a change in the overall shopping and dining experience. Analyzing it from an expert point of view, it is possible to understand the impact of company decisions and the demands of consumers on the future of retail.
