Management missteps are a primary driver of retail bankruptcies and large-scale closures when companies accumulate insurmountable debt. Coresight projects more than 15,000 U.S. store closings in 2025, more than double the roughly 7,000 that shut last year. Store closures reflect overlapping pressures rather than a single cause. Rising interest rates, inflation, and impending tariffs are increasing costs for retailers, with grocery prices up 23% since 2021 and electronics costs possibly rising up to 68%. Changing consumer habits and online shopping, together with companies failing to adapt their business models, accelerate closures and reshape the retail landscape.
The reality is that while all of those things factor in, management play an even bigger part in a company failing. Businesses file for bankruptcy when they face insurmountable debt. You don't get to that point just because labor prices go up or your cost of goods increases. Failing takes a lot of bad mistakes, and many of the companies closing hundreds of locations clearly had management make some poor decisions.
One of the key reasons brick-and-mortar stores are shutting down in 2025 is a combination of economic pressure, rising interest rates, and inflation. To make matters worse, inflation and impending tariffs are driving up the cost of goods. Grocery prices have jumped 23% since 2021, and the cost of electronics could rise by up to 68%, depending on the category.
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