We are in a complicated moment for US retail, the malls are filling up again, but many stores are not seeing the progress.
And the thing is, stores cannot survive only with people looking at the shop windows, there are more visits but fewer purchases. 2025 has crowned itself as an authentic chaos for retailers, and historic chains like Dillard’s, Macy’s or JCPenney have been forced to lower the shutters of many of their stores and it does not seem like it will stop.
More visits but fewer sales
Yes, surely if you have gone to any mall you have noticed it, there are dozens, hundreds of people walking up and down the place, but how many people are carrying shopping bags? Very few.
Data from Placer.ai shows a new trend in shoppers, more steps, more movement… but few bags. People go in, look, compare, pick up their packages and leave.
And of course, it is difficult to balance accounts like that, tell that to Forever 21, Claire’s, Joann or Torrid, hundreds of stores have had to close and others are in bankruptcy…
Macy’s, for example, has thrown in the towel in 66 locations this year and plans to reach 150 closures in 2026. JCPenney is also making its network smaller and smaller, eight stores closed for not being able to pay the rent…
And now, Dillard’s, which seemed to be handling things better, joins the list… but quietly.
Dillard’s closes its stores
Discreetly and without announcing anything, they have closed their stores almost without anyone noticing.
They have already closed in Tennessee, Ohio, Florida, Nebraska, Arizona… and soon Texas will fall. The store at The Shops at Willow Bend (Plano) will lower the shutter in early 2026.
In Tennessee they even sent a letter to the city council saying that the closure would be “permanent” and that it would happen between January 17 and 31, 2025. And so it was.
According to the company, they are not “abandoning” anything, they say they are simply optimizing their network. But we already know that means there are stores that are not profitable and it is better to close them.
And how are their numbers?
Even if it does not seem like it, in the second fiscal quarter of 2025, Dillard’s managed to increase its total sales by 1%. Net income was 72.8 million dollars, slightly below the previous year. And its gross margin was 38.1%, strong, although lower than the previous 39.1%.
So, the closure?
The CEO, William T. Dillard II, said that they are cutting costs and controlling inventories to keep themselves stable in this environment. And this market changes quickly and it could be that it is a structural problem.
It is the model in general
It seems that Dillard’s has found its balance with fewer stores and fewer staff, but the department store sector has been having problems for years, and although these stores work better than many others, the traditional format is changing and losing importance.
And it is not only happening to Dillard’s, many other department stores are in exactly the same situation.
Retail closures in 2025
- Forever 21: Closing 350 stores after filing for bankruptcy
- Claire’s + Icing: Shutting down 291 stores across North America
- Torrid: Closing 180 stores as it shifts toward a digital-first model
- Macy’s: Closing 66 underperforming locations in 2025
- JCPenney: Closing 8 stores due to expiring leases
- Joann (Fabrics & Crafts): Closing all 850 stores after a second Chapter 11 bankruptcy
What is happening to shoppers?
That it is much easier to buy online and simply go pick it up in the store, it is faster, some things are even cheaper… And why deny it, it is much easier.
And the future?
It seems that only those stores that know how to find the perfect harmony between their physical stores and their online stores will survive, but until that arrives, we have to say goodbye to big classics like Macy’s and JCPenney.
And no, seeing malls full of people walking from one side to the other is not an example that the economy is doing well, only that tastes are changing, they go into many stores but that does not mean they spend like before.
Will our stores be able to overcome this wave of changes?