The retail world is going through tough times. Many physical stores are struggling due to a mix of factors like rising online shopping, changing buyer habits, inflation, and higher costs for labor and operations. The pandemic made things worse, and ongoing tariffs and global politics have added uncertainty for both U.S. and international businesses.
Even giants like Target and Walmart are feeling the pressure. Target’s CEO, Brian Cornell, said the first quarter of 2025 was an “exceptionally challenging environment.” Walmart’s CFO, John David Rainey, spoke about record-high price increases caused by tariffs on imported goods. Both companies, along with Macy’s, Shein, Temu, and elf Beauty, have warned prices might rise to keep up with these costs.
Besides price hikes, layoffs, bankruptcies, and store closures are becoming more common. Chains like Rite Aid, JCPenney, Saks Fifth Avenue, and Family Dollar already closed many locations in May, with thousands more closures expected by the end of the year.
Rite Aid’s Ongoing Store Closures
Rite Aid, the popular pharmacy chain, filed for bankruptcy for the second time in less than a year on May 5. Since then, it has been closing stores in waves:
- First wave: 47 stores closed in early May
- Second wave: 68 stores across seven states
- Third wave: 95 stores shut down
Now, a fourth wave will close 151 more stores across 10 states, as reported in court filings from May 23. So far, 361 stores are affected in this bankruptcy process.
Thrifty Ice Cream: A Sweet Loss Inside Rite Aid
With Rite Aid closing many locations, about 500 spots selling Thrifty Ice Cream—known for its cube-shaped treats—will also shut. Since Thrifty Ice Cream is sold inside Rite Aid pharmacies, it can’t be sold separately.
But don’t worry, fans can still find Thrifty Ice Cream in grocery store freezers like Rite Aid, Albertsons, and Vons, plus scoop counters in California, Arizona, and other parts of the U.S. and Mexico.
Dollar Tree and Family Dollar: Major Cutbacks Continue
Dollar Tree plans to close around 1,000 Family Dollar stores after selling the struggling brand to private equity firms. Many stores have already closed or will close once their leases end. In the first half of 2024, about 600 Family Dollar locations shut down, and 370 more will close in coming years.
Dollar Tree itself will close around 30 stores, citing tough market conditions, rising competition, and challenges merging the two retail chains.
CVS Pharmacy’s Big Restructuring Push
CVS is also set to close stores in June, part of a plan to shutter 271 stores this year to streamline operations. This effort began in 2021, aiming to adjust to changing customer habits.
CVS chose closures based on factors like population shifts, how people shop locally, pharmacy density, access, and community health data. This move follows the shutdown of about 900 stores between 2022 and 2024.
Other Retailers Also Shutting Stores
In addition to these big names, other well-known retailers will also close locations this month, continuing the trend of adjusting footprints in a tough retail environment.
The retail industry is clearly facing one of its toughest periods in recent years. Rising costs, changing consumer preferences, and economic uncertainty are forcing many well-known stores to close locations or restructure. For shoppers, this means fewer physical stores but possibly more competitive pricing and changes in how they shop. For employees and communities, it’s a challenging time as local jobs and services adjust to the new retail landscape.
