America’s shopping scene is changing faster than ever. Big stores that seemed like permanent parts of our neighborhoods are closing dozens, sometimes hundreds, of locations every year. What started as issues from the pandemic has turned into a deep, ongoing problem reshaping how and where people shop.
Many shoppers don’t notice the warning signs until it’s too late. This collection of signs will help you spot when a major store is about to close down near you.
1. Leaders Admit Losing Big Money
When company bosses say openly that some stores are losing tens of millions of dollars, it’s a serious red flag. For example, Walmart said in April 2023 that some Chicago locations lost money for 17 years straight, then those stores closed soon after.
CEOs don’t make such admissions lightly and it usually means closing those stores is already decided. So, if you hear these statements, it’s very likely that stores could shut their doors within weeks.
2. Theft Spikes Hurt Stores Badly
Stealing from stores is a major reason for closures. Some retailers report theft has doubled in only five years. For example, Target started locking up entire product sections in some places to stop thieves. When you start seeing locked cases and fewer items on shelves, it means the store is in trouble.
Security costs become too high compared to profits. So, locked shelves and tight security often mean stores are struggling and may close soon.
3. Bankruptcy Is a Warning Sign
When a big store chain files for bankruptcy, closures usually happen fast. Bed Bath & Beyond filed for bankruptcy in April 2023 and shut all stores by July, only three months later. Forever 21 entered bankruptcy twice, with the last time ending in complete store shutdowns.
Bankruptcy means investors and bosses already picked which stores will close. Watching bankruptcy news can help predict which stores will disappear soon.
4. Store Hours Get Shorter, Staff Thinner
Stores thinking about closing often cut hours and reduce staff first. If a store that opened from 7 AM to 11 PM suddenly closes at 8 PM and opens later, it’s a sign of trouble. This saves money while bosses decide if the store stays or goes.
These changes almost never reverse and usually lead to shutdown. So when your local store tightens hours and cuts staff, it may be counting down to closure.
5. Stores Getting Smaller or More Fun
Stores moving to smaller spaces or experience models means traditional big stores aren’t working anymore. Kohl’s shrunk its store sizes, and Foot Locker is closing many mall stores to open new experimental types.
This means stores that can’t change quickly will close, usually within a year or two. If your store hasn’t adapted, it may close as the company focuses on smaller, more modern places.
6. Online Shopping Gets Priority
When big retailers close physical stores but ramp up online shopping centers, it shows a big shift. Walmart closed many stores but opened high-tech warehouses to deliver online orders faster. Sam’s Club even turned closed stores into delivery centers.
This means companies believe running big warehouses and delivering packages is more profitable than keeping storefronts open. If you see more fulfillment centers near you while stores close, that’s why.
7. Stores Look Run Down Before Closing
Stores about to close often look messy and empty. Shelves might be bare, displays outdated, and fewer choices available. This isn’t just neglect, it’s saving money because the decision to close is already made.
Fry’s Electronics kept empty shelves for years before closing abruptly in 2021. If your local store looks worse than usual, it’s likely heading for shutdown.
8. Fewer People Visiting Stores
Retailers track foot traffic carefully; if visits drop more than 20% a year, stores usually close. Work-from-home trends cut downtown shopping a lot. Studies from Stanford University and the JP Morgan Chase Institute show cities like San Francisco, New York, and Chicago lost many shoppers between 2017 and 2021.
This drop in visitors is predictable and drives store closures. If your neighborhood feels emptier, local stores may not last long.
9. Stores Closing in Your Area
When several stores close in your area within a year, it signals a bigger problem. In 2023, Whole Foods, Anthropologie, and Nordstrom all closed San Francisco stores.
These closures usually mean the market can’t support many shops anymore. Keep an eye on nearby store shutdowns, they’re strong signs that retail trouble is coming to your neighborhood.
Experts Predict More Closures
Analysts who study retail stocks often warn before closures happen. For example, UBS predicted 50,000 more U.S. stores will close by 2027.
These expert forecasts shape where companies invest money. If your favorite store’s stock was recently downgraded or earnings revised downward, your local stores may be at risk over the next year.
How COVID Speeded Up Closures
The COVID-19 pandemic made store closings happen much faster. In 2020 alone, U.S. retailers shut 9,302 stores, a 59% jump compared to two years earlier and the highest rate since 2012. Big names like J. Crew, Neiman Marcus, and JCPenney filed for bankruptcy that year.
But by mid-2022, store openings started to outnumber closings again. The pandemic was a huge shock, but not the end, some stores are now coming back differently.
What Are Retail Deserts?
When big stores close, smaller shops nearby often shut too, creating retail deserts. These are areas where people must travel far for essentials like groceries or clothes. Millions of Americans in poorer urban and rural areas are affected.
Store closings don’t just affect shopping, they change how neighborhoods grow and survive. That’s why watching closures is important for understanding your community’s health.
The Crime and Safety Debate
Stores often blame crime and safety problems for closing, like Walmart did in Chicago or CVS citing theft. But some economists say crime rises after stores leave, not before. This creates a tricky cycle: retail declines lead to more crime, and crime is used as a reason to close stores.
Though the causes are debated, safety concerns are a common reason retailers give when shutting locations.
Sources:
Bankruptcy, Falling Sales Force Thousands More Store Closures – The Street
2025 US Retail Industry Outlook | Deloitte Insights – Deloitte
The great retail reset: what’s behind the wave of store closures – Retail Insight Network
Retail Apocalypse: What The Data is Actually Telling Us – ReatilDogMa