Calling 2025 “the year of the retail bankruptcy” perhaps wouldn’t be fair. After all, retail bankruptcies have been pretty rampant since the Covid pandemic.
Still, in the past eight months or so, we’ve seen a notable number of retail chains seek Chapter 11 protection, including:
Rite AidJoannClaire’sForever 21At Home
And often when retailers file for bankruptcy, store closures tend to happen as part of the process.
Of course, retailers can certainly opt to close stores outside of a Chapter 11 bankruptcy filing. And there are plenty of good reasons to do so.
In some cases, it can be a matter of cost savings. Stores with expensive leases, for example, may be worth unloading if they don’t generate enough revenue.
Similarly, it’s a common strategy for retail chains to close underperforming store locations, even if the business is doing well as a whole. That way, they can focus on the stores that are bringing in the most sales.
A popular grocery chain will close a dozen stores in November.
Image source: Jeff Greenberg/Getty Images
Grocery stores are not immune to closures
It’s maybe not so surprising to see companies like Joann and Claire’s file for bankruptcy and close stores.
Many crafting enthusiasts enjoyed shopping at Joann, but let’s face it — fabrics aren’t really an essential purchase if you’re buying them as a hobby. And there are other places you can get them (including Amazon, which sells just about everything these days).
Similarly, preteen and teen girls everywhere may be saddened to see Claire’s closing stores. But it’s hard to classify Claire’s inventory as “essential.”
Related: Costco-like membership-based grocery chain makes big move
Grocery stores, on the other end, are essential to both customers and communities. So whenever a big chain announces supermarket closures, it’s enough to rattle consumers and sound alarms about the U.S. economy as a whole.
If supermarkets can’t thrive, how can nonessential retail?
Still, a number of supermarket chains have announced store closures in 2025. These include:
KrogerGrocery OutletWinn DixieStop & Shop
And very recently, East Coast-based chain Shoppers Food announced plans to shutter four stores in Maryland. The closures are slated for October.
Safeway to close 10 store locations
Like other supermarket chains, Safeway has been forced to adjust its strategy in today’s economy. The supermarket giant announced recently that it plans to close 12 stores by Nov. 7, most of which are set to take place within Colorado.
Safeway stores slated for closure:
201 E. Jefferson, Englewood, Colorado 80113500 E. 120th Ave, Northglenn, Colorado 802331653 S. Colorado Blvd., Denver, Colorado 8022212200 E. Mississippi, Aurora, Colorado 800123657 S. College Ave, Fort Collins, Colorado 80525860 Cleveland Ave., Loveland, Colorado 805375060 North Academy Blvd., Colorado Springs, Colorado 809181425 S. Murray Blvd., Colorado Springs, Colorado 80916315 W. 2nd St., La Junta, Colorado 81050906 E. Olive St., Lamar, Colorado 81052230 Morehead Street, Chadron, Nebraska 69337730 W. Main St., Farmington, New Mexico 87401
As Safeway told KOAA News5, “We continuously evaluate the performance of our stores, and occasionally, after long and careful deliberation, it becomes necessary to make the difficult decision to close certain locations.”
Related: Beloved 117-year-old Home Depot rival closing, liquidates
The company also said, “The decision to close these stores was not made lightly. With a focus on growth, these closures will enable us to continue investing in our store network and better align with evolving customer needs.”
Hand-picking stores for closure to focus on broad growth is not an unusual thing. The problem is that when grocery stores shut down, it can hurt communities and make it harder for people to access healthy, affordable groceries.
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In cities such as Lamar and La Junta, residents may now need to drive as much as 60 miles to reach the next-closest full-service supermarket once Safeway shutters those locations.
If supermarket closures pick up on a national scale, it could create a situation where consumers have to travel further and spend more money just to stock their fridges and pantries.
Related: Costco offers discount memberships (here’s who gets them)
