Latest Store Closure Activity

Throughout 2024, many kinds of retail tenants saw store closures. Discount retailers, casual dining restaurants, and big-box retailers were just a few tenant types that reported shutting their doors. Many cited a decrease in consumer activity as a reason for closing, along with increased inflation levels. 

Across the country, more than 7,100 stores closed by November 2024, which is a 69% increase from the same period in 2023. Investors and consumers must be aware of this activity moving forward as some retailers have already closed in Q1 2025.

Party City

Party City announced it would be closing all of its 850 stores when it declared its second bankruptcy in December 2024. Upon news of its closing, other retailers stepped up to the plate to take over the empty spaces. Discount retailer Five Below quickly announced its intent to take up 44 of the closed Party City locations. Five Below successfully leased these 44 stores, with the majority of them located on the West Coast.

Forever 21

Fashion retailer Forever 21 broke the news that it would shut down all of its U.S. stores in early March. The announcement comes upon the retailer filing for bankruptcy for a second time, as well as difficulties in keeping up with other competitors. Upon the news, the retailer stated its assets range between $100 million to $500 million. This may create difficulty in the empty stores being leased as several of them are located in malls. There are more than 350 Forever 21 stores across the country, and the retailer plans on closing them all before May 1.

Big Lots

Once a prominent big-box retailer offering discount products, Big Lots announced it would close all of its 870 stores. It decided to close its stores due to financial difficulties, which led to it filing for bankruptcy in September 2024. Despite mass closures for Big Lots, around 200 of its locations will remain open due to Variety Wholesalers stepping in to take up some stores. Variety Wholesalers will begin its acquisition of Big Lots properties on April 10, and will remodel its acquired stores in order to enhance consumers’ experiences.

Joann’s

While once a staple shop for DIY enthusiasts, crafts store Joann’s is closing all of its 800 locations. The craft chain declared bankruptcy in March 2024, and then declared bankruptcy again in January 2025. This news is due to Joann’s recording a decrease in sales, as well as its inability to keep up with competitors. Joann’s already began its out-of-business sales, and its assets were acquired by GA Group.

Family Dollar

The Family Dollar and Dollar Tree merger that began in 2015 is undergoing a downfall a decade later. In March, Dollar Tree announced it is selling its Family Dollar assets to Brigade Capital Management and Macellum Capital Management for $1 billion in order to prioritize its store operations. The sale is expected to finalize in June 2025, but it will also include store closures. There were 600 Family Dollar closures in the first half of 2024, and 370 locations will shut down upon the sale this year.

Impact on the Retail Segment

As closures continue, the vacant spaces left over can aid tenants in search of space in the tight retail segment. Empty big-box stores, particularly, are beneficial as they can be transformed to meet the needs of smaller tenants. However, impending tariffs can also largely impact the retail segment. With tariffs in place, retailers may see a decrease in consumer foot traffic, which could lead to more closures moving forward.