120 Million Square Feet: Store Closings In The US Are On Pace To Set A New Record High In 2025

Authored by Michael Snyder via The Economic Collapse blog,

If everything is going to be just fine, why are thousands of stores closing all over the country?  So far this year, the total amount of retail space that has been permanently closed has surpassed 120 million square feet.  We have never seen anything like this before.  Store closings spiked during the early days of the pandemic, but in 2025 stores are being permanently shuttered at an even faster pace.

 In fact, during the first six months of this year 5,822 store closures were recorded…

Store closures across the U.S. continue to rise, and remain on track to far significantly surpass both new openings and the figures seen in 2024.

According to a new report from research and advisory firm Coresight Research, cited by CoStar News, 5,822 store closures were recorded as of June 27, compared to 3,496 closures announced during the same period of 2024.

If stores continue to close at this rate, we will break the old record that was established during the pandemic by a wide margin.

We are also being told that the total amount of retail space that has been permanently shuttered in 2025 has reached a staggering 120 million square feet…

In June, store closings by Plano, Texas-based home goods seller At Home and Philadelphia-based pharmacy chain Rite Aid, which have both filed for Chapter 11 bankruptcy protection, “pushed the total amount of retail space to close in the U.S. this year to over 120 million square feet,” Coresight said. The real estate churn is happening “as cyclical impacts confront structural shifts,” according to one executive at the research firm.

Wow.

You may have noticed that there are an increasing number of abandoned buildings in your particular area.

Sadly, this is just the beginning.

Consumers are under more financial stress than we have ever seen, and that has resulted in a substantial decline in store traffic…

Many of the retail store closures are a result of declining store traffic as more consumers respond to inflation by reducing spending. There also are more consumers turning to online shopping especially for apparel, accessories and household items. The winner is not merely Amazon but increased competition from Temu and Shein marketplaces and social commerce outlets like TikTok.

Needless to say, more stores are being closed down with each passing day.

After filing for Chapter 11 bankruptcy protection, Claire’s announced that it will be closing 18 more stores…

Claire’s, a mall-based teen accessories retailer, has identified several locations across the country it plans to close after filing for Chapter 11 bankruptcy protection.

Claire’s U.S., which operates Claire’s and Icing stores, made the filing in the U.S. Bankruptcy Court in Delaware on Wednesday. It’s the second time since 2018 the company has filed for bankruptcy.

While the company says the majority of its retail stores will remain open while it “continues to explore all strategic alternatives,” Claire’s said it identified 18 stores ahead of the Aug. 6 bankruptcy filing it would close, filings show.

And home goods retailer At Home just announced that it will be closing 6 more stores…

The home goods retailer At Home is closing an additional six stores across the country, bringing its total closure tally to more than two dozen as it grapples with high debt and dwindling sales.

The furniture and home decor retailer based in Coppell, Texas, filed for Chapter 11 bankruptcy on June 16, pointing to “broader economic and retail-specific market pressures,” in court documents. The bankruptcy filing and store closures follow several other “big box” retailers that have also significantly downsized their brick-and-mortar footprints this year, including Big Lots, Joann Fabrics, Kohl’s, JCPenney, Macy’s, and Party City.

The retailer intially announced 26 store closures in June, before paring that down to 24 when it decided to keep open two stores in New Jersey and Wisconsin. The company added another six stores to the list, according to a statement by retail firm Hilco Consumer-Retail on Aug. 1, bringing the current number of stores it will shutter in the coming months to 30.

We see more stories like this every single day.

So what is going to happen if our economic momentum continues to take us very rapidly in the wrong direction?

Earlier today, we learned that the percentage of student loans entering serious delinquency is absolutely exploding…

The total amount of outstanding student loan debt was $1.64 trillion in the second quarter of 2025 after rising by $7 billion in the quarter.

Additionally, the share of student loan debt entering serious delinquency, considered 90 days or more late, jumped to 12.9% at the end of June, up from 8% in March and above pre-pandemic trends that were around 9-10% from 2012 into early 2020, when the moratorium initially took effect.

The American people are drowning in debt, and I expect delinquency rates of all types to continue to rise in the months ahead.

We are going to see more layoffs too, and the fact that continuing claims for unemployment benefits just hit their highest level since 2021 is not a good sign at all…

Recurring applications for unemployment benefits surged to the highest since November 2021, adding to recent signs that the labor market is weakening.

Continuing claims, a proxy for the number of people receiving benefits, rose by 38,000 to 1.97 million in the week ended July 26, according to Labor Department data released Thursday.

On top of everything else, U.S. manufacturing activity is now in contraction territory…

From March to July, U.S. manufacturing activity contracted, according to the Institute for Supply Management’s monthly survey. The Manufacturing PMI last registered at 48, below the 50 score that differentiates growth and decline.

The effective average tariff rate on all imported goods now stands at around roughly 18% versus 2.3% last year, the highest levels since the 1930s.

We are in so much trouble.

After evaluating all of the latest economic numbers that have come in, Mark Zandi has come to the conclusion that the “economy is on the precipice of recession”…

Mark Zandi, chief economist at Moody’s Analytics, on Monday wrote a post on X that the “economy is on the precipice of recession” – citing the weaker-than-expected jobs report released Friday and the inflation data from the previous day that showed consumer prices rose as indicating the economy’s precarious position.

“Consumer spending has flatlined, construction and manufacturing are contracting, and employment is set to fall. And with inflation on the rise, it is tough for the Fed to come to the rescue,” he wrote.

It is hard to argue with him.

Of course what is eventually coming is going to be so much worse than just a “recession”.

As conditions deteriorate, will store closings slow down or will they speed up?

The answer to that question is obvious.

If there are stores in your local area that you really enjoy, I would visit them now while you still can, because they might not be there next year.

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Michael’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.