These CA Retailers Are Closing Locations In 2025

CALIFORNIA — Another tough year hit businesses in California as several national chains announced closures and bankruptcies in 2024.

According to data reviewed by Newsweek, there was a 69 percent increase in stores closing from 2023. By the end of November 2024, retailers projected over 7,100 store closures, a considerable surge from last year's 5,548 closures.

Going into 2025, Forbes said business owners and leaders should be prepared to adapt as the rise of Gen Z and artificial intelligence are poised to shift consumer attitudes. According to data from Managing Director for Shopify EMEA Deann Evans, Gen Z shoppers make a majority of their purchases through social media.

AI technology has swept through almost every industry and can be a huge benefit for businesses who have run into roadblocks due to head count.

"AI adoption will define small business success in the next decade, opening up new opportunities with a full team in your pocket,” states Omer Goldschmidt, CEO of operations platform Evermile.

Here are the chains and businesses that closed many stores in 2024 or shut down entirely:

1. Macy's

Anchor store Macy's is expected to close 65 locations by the end of 2024. In February, the company announced its plans to close approximately 150 underproductive locations through 2026.

2. Party City

Party City has had a rough few years, officially announcing on Dec. 21 it would close down all of its remaining stores after nearly 40 years in business. The chain has at least 80 remaining stores in California after past mass-closures.

“PCHI is grateful to its team members for their commitment over the years,” the company said in its announcement.

3. Rue21

Teen clothing retailer Rue21 announced in May that all of its stores would close up shop after filing for chapter 11 bankruptcy, including its 19 California locations. The Pennsylvania-based company said it was $194.4 million in debt and had attempted to sell the business to no avail.

Rue21 had previously filed for bankruptcy twice, in 2003 and 2017, according to Reuters, which reported the company had continued to struggle in the face of the coronavirus pandemic and increased interest in online shopping.

4.Walgreens

Walgreens announced it would close a "significant number" of underperforming stores in June. The pharmacy chain operates more than 580 locations in California, the second most of any state behind Florida.

The Illinois-based Walgreens Boots Alliance said it is finalizing a "significant multiyear footprint optimization program" to close underperforming stores.

"We continue to face a difficult operating environment, including persistent pressures on the U.S. consumer and the impact of recent marketplace dynamics, which have eroded pharmacy margins," said Tim Wentworth, CEO of WBA.

5. Big Lots

After months of announcing store closures, beleaguered retailer Big Lots declared Chapter 11 bankruptcy in September. Nationwide, the chain announced the closure of 300 locations, including 74 individual stores in California.

In its bankruptcy filing, Big Lots said it plans "to continue optimizing our store footprint" during its reorganization process.

"Though most of our stores are profitable, and we are taking every step possible to improve the profitability of all our stores, we will need to close certain locations to ensure that our business operates efficiently and we can continue serving our customers," the company stated in a release.

Then, on Friday Big Lot said it would have to liquidate all locations only to announce a last-minute deal with Gordon Brothers Retail Partners LLC and Variety Wholesalers Inc. to save hundreds of stores over the weekend. It's not clear how many stores in California will be saved.

6. LL Flooring

Home improvement chain LL Flooring, formerly Lumber Liquidators, announced it would shutter 200 locations nationwide and in California in September. The company abruptly announced the closures after failing to find a buyer to keep doors open.

The store closures were announced just three weeks after the company filed for Chapter 11 bankruptcy.

"It is with a heavy heart that we must let you know that we are going to begin the process of winding down LL Flooring's business and closing all of our stores," LL Flooring President and CEO Charles Tyson said in a statement. "This is not the outcome that any of us had hoped for."

7. Rite Aid

Struggling pharmacy chain Rite Aid announced more closures nationwide in 2024, including 22 stores in California.

The closures came after the drugstore chain filed for Chapter 11 Bankruptcy in late 2023, since announcing a total of 431 store closures across the country. Rite Aid has said it has faced falling sales, increasing competition, and mounting debt stemming from opioid-related lawsuits.

"In connection with the court-supervised process, we notified the Court of certain underperforming stores we are closing to further reduce rent expense and strengthen overall financial performance," a Rite Aid spokesperson told Business Insider.

8. Walmart

The big-box retailer announced it would close 11 stores before the end of 2024, including two in California in West Covina and Granite Bay.

9. CVS

The pharmacy giant has announced plans to close hundreds of stores over the next few years. According to executives at CVS, the 2025 closures will target areas with overlapping locations or low foot traffic to focus on expanding healthcare services.

10. 99 Cents Only Stores

99 Cents Only Stores announced in spring that it would permanently close all 371 locations, costing about 14,000 employees their jobs. In May, executives at Dollar Tree announced that most of the shuttered 99 Cents Only Stores across California would reopen as Dollar Trees.

"As we continue to execute on our accelerated growth strategy for the Dollar Tree brand, this was an attractive opportunity to secure leases in priority markets where we see strong profitable growth potential,” said Michael Creedon, Jr., Dollar Tree’s Chief Operating Officer.