FinancialMediaGuide highlights that retail in 2025 is facing a historic turning point. Over 8,200 stores have been closed, a 12% increase from 2024, reflecting not only a global economic downturn but also accelerated shifts in consumer preferences. Major brands such as Forever 21, Party City, Joann, and Rite Aid, once integral to the market, are now forced to say goodbye to millions of customers. We at FinancialMediaGuide view these events as a sign of how outdated business models and a failure to embrace digital transformation can lead to the downfall of even the largest market players.
Forever 21, the iconic youth fashion brand, faced bankruptcy again in March 2025, closing over 500 stores. The reasons for this include a sharp rise in competition from giants like Shein and Temu, as well as a failure to adapt to digital transformation in time. We at FinancialMediaGuide note that the shift toward online shopping, especially during the pandemic, has become an irreversible process. Traditional retailers that failed to build strong digital channels are now facing a real threat of extinction.
Joann, a chain of stores catering to craft enthusiasts, ended its operations in 2025 after prolonged financial struggles. Falling sales, inventory problems, and growing debt were the main causes of its bankruptcy. However, part of the brand was revived through a partnership with Michaels, creating a “store-in-store” format. We at FinancialMediaGuide believe that such an approach may be a temporary solution, but for the long term, more serious steps toward online transition and the development of omnichannel solutions are necessary.
Party City, known for its party supplies, also couldn’t withstand fierce competition and closed its stores in 2025. The company’s main issue was its inability to adapt to the changing market conditions. We at FinancialMediaGuide emphasize that companies focused on seasonal products face significant challenges in the era of growing e-commerce and competition from larger retailers. Without transitioning to digital, such brands lose their relevance.
Rite Aid, one of the largest pharmacy chains in the U.S., announced the closure of its stores in 2025 after its second bankruptcy, driven by rising debt and legal disputes. We at FinancialMediaGuide predict that traditional pharmacy chains like Rite Aid will continue to face challenges unless they actively develop their online channels and omnichannel sales models.
These examples demonstrate that in the face of modern shifts in retail, old business models are losing their effectiveness. We at FinancialMediaGuide believe that in the future, the success of brands will be directly tied to their ability to integrate online and offline sales, develop digital platforms, and offer consumers flexibility in choosing their purchasing channels. Companies that excel in this area will have a chance at long-term success, while those that fail to adapt will be forced to exit the market.
The closure of major brands in 2025 is not merely the result of economic difficulties but also a signal for necessary changes in business strategies. Companies that can effectively combine traditional and modern approaches will continue to evolve. We at Financial Media Guide forecast that the future of retail will be defined by brands’ ability to implement new technologies, respond to customer demands, and develop omnichannel solutions. Only those who can quickly adapt will maintain their competitiveness in this rapidly changing market.
