Consumers have been forced to make tough spending choices in the wake of rampant inflation and high interest rates. And given that there doesn’t seem to be a light at the end of the tunnel in either regard, retailers could be in for another year of sluggish sales.
The Trump administration’s tariff policies might make the problem worse. In recent weeks a number of retail CEOs have sounded the alarm on cost increases. And if sales fail to pick up, 2025 could end up being a record-setting year for store closures.
As things stand more than 7,300 retail locations closed their doors permanently in 2024. And with Coresight Research anticipating another 15,000 store closures in 2025, there’s perhaps never been greater concern that the aptly-named retail apocalypse will soon be upon us.
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A number of the store closure announcements to come out in recent months have been associated with bankrupt retailers. But even thriving brands and locations aren’t immune to closures.
In early 2025, Macy’s said it planned to close its popular San Francisco Bloomingdale’s location. And Nordstrom has announced one-off closures as well.
Earlier this year Neiman Marcus also disclosed plans to shutter its flagship store in downtown Dallas. And after weeks of back and forth with city officials, as of a couple of weeks ago, the decision seemed to be final.Â
But that flagship store may be getting a lifeline after all.
Iconic Dallas retail store may get a lifeline.
Shutterstock
Flagship store closure saddens customers and city officials
Although retailers have been closing stores in response to a broad slowdown in sales, the decision to close the flagship Neiman Marcus store in downtown Dallas had little to do with performance. Rather, it came as the result of a lease-related dispute.
Once Saks Global, which owns Neiman Marcus, outlined its final decision to shutter its downtown Dallas location, city officials put the pressure on in an attempt to save the iconic store.
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But at the time, a Saks spokesperson said, “Our decision to close the Neiman Marcus Downtown Dallas store is final and we are moving forward as such.”
Saks also said that the situation was complex and that even with help from city officials, the odds of reaching an agreement on its lease were incredibly slim.
Saks was quick to note that it wasn’t looking to pull out of Dallas completely. The company said it was planning to invest $100 million to renovate its nearby NorthPark Neiman Marcus store.
Talks to save Neiman Marcus are back on the table
Although Dallas residents have been preparing to say goodbye to their beloved downtown store, the fight might not be over just yet. Despite Saks Global’s insistence that its flagship Neiman Marcus store will close on March 31 as expected, Dallas city officials say they still have an opportunity to reverse that decision.
The Dallas Consortium has reached out to Saks Global with a proposal, the details of which have yet to be disclosed. But it said the opportunity would be “financially beneficial to Saks Global” and “beneficial to the Neiman Marcus brand.” The solution is also said to be both “creative and doable.”
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A meeting between Saks Global and Dallas city representatives is scheduled for March 24 to discuss a potential shift in plans.
Neiman Marcus has operated in downtown Dallas for more than 100 years. Losing the store is akin to losing a part of the city’s history.
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Although Saks Global insists that the reason for its planned shutdown is lease-related, it did note that a slow resurgence of the downtown Dallas area in recent years was a driver in its decision.Â
The company maintains that investing in its NorthPark Neiman Marcus store is a better use of its resources given customers’ clear preference for that location.Â
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