Research firm Coresight predicts nearly three times as many stores will close than will open in the coming year. More specifically, in its 2024 review/2025 outlook, the company estimates that about 15,000 stores will close in the U.S. this year, while about 5800 stores will open.
The above comes on the heels of a busy 2024, which showed major retailers shuttered 7325 stores for the year, resulting in an estimated 119.3 million square feet (gross) of closed retail space. That was the greatest number of closures since pandemic-impacted 2020, when Coresight tracked almost 10,000 closures. The closures had an average store size of 16,291 square feet.
Some other stats of note from the just-finished year:
- Major retailers opened 5970 stores in 2024, resulting in an estimated 96.5 million square feet (gross) of new retail space. The new openings had an average store size of 16,164 square feet.
- By sector, general-merchandise discount stores closed 1754 stores, taking the top spot for US closures by sector (at 23.9% of total closures), followed by the apparel sector, which closed 1383 stores.
- General-merchandise discount stores also led the way in terms of US store openings by sector, opening 1767 stores in 2024 (29.5% of total openings), followed by the apparel sector (which includes clothing, footwear and accessories stores), which opened 1478 stores.
- By location type, off-mall retailers opened the most stores but also saw the most store closures. Off-mall retailers closed 6014 stores (82.1% of total closures) and opened 5025 stores (84.1% of total openings).
Despite the relatively high number of closings expected in upcoming months, Coresight is upbeat about what the coming year will hold for retailers.
“A strong 2024 holiday performance, positive trends in our consumer sentiment metrics and generally upbeat macroeconomic indicators suggest reasons for optimism for robust retail spending in 2025,” the report notes.
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