Several prominent U.S. retailers, including Rite Aid, Dollar Tree, and CVS, have announced significant store closures set to begin in June 2025, citing economic challenges such as inflation, rising labor costs, and increased competition from e-commerce.
Rite Aid, once a staple in American pharmacy retail, is undergoing its second Chapter 11 bankruptcy in less than two years. The company plans to shutter an additional 151 stores, bringing the total closures during this bankruptcy process to 361. This move is part of a broader effort to restructure and stabilize the company’s finances amid mounting debts and operational challenges. Notably, the closures will also impact approximately 500 in-store Thrifty Ice Cream counters, a nostalgic brand for many consumers.
Dollar Tree, the parent company of Family Dollar, has announced plans to close nearly 1,000 stores across the United States. This decision follows the sale of the Family Dollar brand to private equity firms Brigade Capital Management and Macellum Capital Management for $1 billion. The closures include approximately 600 Family Dollar stores that shut down in the first half of 2024, with an additional 370 Family Dollar and 30 Dollar Tree locations slated to close over the next several years as leases expire.
CVS Health has confirmed the closure of 271 stores nationwide in 2025 as part of its ongoing enterprise-wide restructuring plan. This follows the closure of approximately 900 stores between 2022 and 2024. The company cites factors such as population shifts, consumer buying patterns, and community health needs for its decisions. Despite the downsizing, CVS plans to open 30 new pharmacy locations, many within Target stores, and is developing new store formats, including HealthHUBs and locations offering primary care services.
Industry analysts predict that up to 45,000 brick-and-mortar stores could close by 2030, with sectors like apparel and electronics being most affected. This trend is driven by the rising dominance of e-commerce, increased borrowing costs, and consumer spending cutbacks due to inflation. Analysts suggest that for every one percent increase in the proportion of sales made online, approximately 8,000 physical stores will close.
Despite these closures, retailers such as Walmart and Costco are expected to maintain resilience due to their diversified offerings and strong online presence. These companies have successfully integrated e-commerce into their business models, allowing them to adapt to changing consumer behaviors and market dynamics.
The wave of store closures underscores the ongoing transformation in the retail landscape, where traditional brick-and-mortar stores face mounting pressures from digital competitors and shifting consumer preferences. As retailers navigate these challenges, strategic restructuring and adaptation to the digital economy will be crucial for survival and growth.
