Kroger. Rite Aid. At Home. These are just some of the big names in retail that are closing stores in 2025.
Of course, in some cases, store closures go hand-in-hand with bankruptcy. And the retail industry has seen many big names file for Chapter 11 in recent years. The list includes consumer favorites such as:
- Party City
- Joann
- Forever 21
- Claire’s
- Big Lots
This influx of bankruptcies and store closures isn’t surprising, given the economic conditions these past few years.
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Inflation has been battering consumers, forcing them to spend their money more carefully. It’s also been squeezing retailers on margin, eating into their profits.
A number of big retail chains have downgraded their economic outlook for the next year due to not just inflation, but also tariffs and trade tensions. So it won’t be surprising to see even more closures before 2025 comes to an end.
In fact, Coresight research said earlier this year that it anticipates an astounding 15,000 U.S. store closures in 2025 alone.
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Popular regional grocer announces four store closures
There’s a reason Shoppers Food is such a beloved supermarket in the Baltimore-Washington, D.C. metropolitan area. The chain is known for its everyday low prices and affordable store brands.
Shoppers Food is also a big supporter of local communities, often sponsoring school initiatives and helping to stock food banks.
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But like other grocery chains, Shoppers Food finds itself making hard choices in the context of its store footprint. And it recently announced the planned closure of four store locations by October 11:
- 2286 Middlesex, 1200 Eastern Blvd., Essex, MD
- 2339 New Carrollton, 7790 Riverdale Rd., New Carrollton, MD
- 2349/2414 Waldorf, 1170 W. Smallwood Dr., Waldorf, MD
- 2374 Westminster, 551 Jermor Ln., Westminster, MD
The company did not give one specific reason for the closure, stating, “We’re constantly working to optimize our footprint, which includes investing in stores as well as closing stores where necessary so we can operate as effectively and efficiently as possible.”
But while Shoppers Food may be closing these four locations to trim its footprint and allocate its financial resources more wisely, it’s hard to overlook the fact that rampant retail theft in Maryland may also have driven the decision.
In 2024, retail stores lost a whopping $45 billion to theft, according to Capital One Shopping.
Why grocery chains aren’t immune to closures
You’d think that at a time when consumers are trying to spend their money more carefully, grocery chains would be poised to shine. After all, if consumers are going to start cutting back on nonessential spending, they’re apt to swap restaurant meals for ones they prepare at home.
But supermarkets face their own unique challenges in today’s economy, including:
- Higher product costs
- Higher food costs
- Increased competition
The latter may be hurting smaller chains especially.
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With giants like Amazon infringing on the grocery space and mega-chains such as Walmart already dominating, it’s getting harder for regional grocers to stay afloat.
Not only that, but about 80% of retailers and suppliers expect that trade policies and tariffs will continue to impact pricing as well as disrupt supply chains, according to Supermarket News.
But when grocery stores shutter, communities get impacted in a serious way. It can become harder for people to stock their kitchens affordably and get access to the products they love. And store closures can also devalue properties if too many of them happen at once.
More Retail:
- Walmart CEO sounds alarm on a big problem for customers
- Target makes a change that might scare Walmart, Costco
- Top investor takes firm stance on troubled retail brand
- Walmart and Costco making major change affecting all customers
Consumers may not have to worry so much about large supermarkets shutting down – think Walmart and the like.
It’s smaller grocers that are at risk of becoming obsolete. Unfortunatley, these may be more apt to offer great customer service and other perks you won’t find at a big-box chain.
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