From Rite Aid to Party City: 2024’s Retail Closures and Who Might Be Next

In a year marked by unrelenting economic pressure, intense online competition, and shifting consumer tastes, some of the most familiar names in retail have faded away—or at least drastically scaled back. Where 2023 was a nail-biter for big box chains and apparel stores alike, 2024 became the year that retail’s long-looming storm finally took out several once-invincible brands. As analysts look ahead to 2025, many wonder if the industry’s “retail apocalypse” headlines will return for a final encore—or if the market might stabilize before more iconic brands hit the chopping block.

A tough climate has challenged everyone from deep-discount retailers to mid-tier department stores, but it’s the companies that have struggled to reinvent themselves that found the stress truly unbearable.

Rite Aid Files for Bankruptcy, Aims to Restructure One of 2024’s most seismic shocks came when Rite Aid, long teetering on the edge, filed for Chapter 11 bankruptcy in October. Saddled with debt and confronted by rising competition from CVS, Walgreens, and a burgeoning online pharmacy sector, Rite Aid announced it would close more than 150 stores by year’s end. “It was the worst-kept secret in retail,” says Kelly Patterson, Senior Analyst at RBC Capital Markets. “Between increased pressure from e-commerce and ongoing legal liabilities tied to opioid settlements, Rite Aid just couldn’t pivot fast enough.” For Patterson, the closures raise questions about whether additional store-rounds could follow in 2025 as the brand attempts to exit underperforming markets.

David’s Bridal and the Vanishing Weddings Weddings, it turns out, may not be as recession-proof as once believed. In the spring of 2024, David’s Bridal shuttered roughly 200 of its 300 U.S. locations following a second Chapter 11 filing within five years. While the wedding industry at large rebounded post-pandemic, David’s Bridal struggled to attract younger brides who sought more direct-to-consumer, boutique, and custom-made gown experiences. According to a Baird consumer survey, 47% of millennial and Gen Z brides claim they’d be “very unlikely” to shop at large bridal chains, preferring independent designers or online marketplaces instead.

Party City’s Final Confetti Toss Party City similarly found itself in dire straits, landing in bankruptcy for the second time in under a decade. Despite a brief bump in Halloween-themed revenue and the perennial balloon business, foot traffic and party-goods demand didn’t align with the chain’s massive overhead costs. “Party City’s problem was that you can buy the same streamers and balloons on Amazon for half the price—and you’ll get them faster,” says Jonathan Wilson, retail strategist at consultancy MJM Partners. The company announced the closure of 50 stores in 2024, pointing to further “strategic reevaluations” that could lead to more shutdowns early in 2025.

Tuesday Morning’s Second Farewell Closeout retailer Tuesday Morning, which emerged from its first bankruptcy in late 2021, couldn’t sustain its recovery amid the inflationary spike and competitive home-goods market. By mid-2024, it filed once again. Liquidation quickly followed, taking down over 200 stores. While the brand had tried to modernize its approach—rolling out a digital shop and ramping up in-store events—customers didn’t respond with the loyalty executives hoped for. “There’s a glut of discount and off-price retailers, especially as e-commerce discounters multiply,” Wilson says. “Tuesday Morning was a niche operator in a niche that’s now crowded.”

Tuesday Morning’s closures, in many ways, mirror an emerging pattern: mid-sized specialty retailers with limited brand differentiation are highly vulnerable when belt-tightening collides with e-commerce expansion.

Who Could Be Next? Several retailers have caught the wary eye of analysts as 2025 approaches. Department store chains like Kohl’s and JCPenney have posted tepid same-store sales gains, fueling speculation that more store closures or cost-cutting measures might follow. Kohl’s leadership, however, insists it’s exploring “neighborhood store” formats—roughly half the size of existing locations—to reboot growth. JCPenney’s private equity owners have hinted at smaller prototype stores in suburban markets, a potential sign they aim to stave off further rationalization of real estate.

Office supply retailers such as Office Depot remain on watch lists as well. While the brand was buoyed by pandemic-era home office needs, it has faced declining store traffic in recent quarters. RBC Capital Markets estimates that the chain could close another 10-15% of its physical locations if remote work trends persist. “They’ve got to refocus on B2B contracts or revamp store layouts around tech solutions; otherwise, they’re just selling commodities that Amazon can provide faster,” suggests Patterson.

Apparel Chains in the Hot Seat Clothing retailers haven’t dodged the bullet either. Express, Francesca’s, and The Children’s Place all wrestled with mounting losses throughout 2024. Express sold off multiple flagship city stores, citing untenable lease costs and diminishing foot traffic. “If consumers remain price-conscious and e-commerce looms large, these apparel concepts may find themselves forced to shrink or vanish altogether,” says Wilson.

Hope on the Horizon? Despite the casualty list, certain positive indicators suggest the retail industry isn’t doomed to perpetual decline. The National Retail Federation (NRF) reported a 3.2% uptick in holiday spending at the tail end of 2024, surpassing forecasts. Also, niche success stories—like Tractor Supply, Five Below, and Lululemon—demonstrate that brand differentiation and compelling in-store experiences can still forge consumer loyalty.

Capital markets, too, are showing signs of thawing. A mid-year Deloitte survey noted that 58% of private equity firms plan to increase their retail investments in 2025, eyeing “opportunistic” valuations of distressed assets. Some of this new money might stabilize shaky brands or enable M&A that consolidates weaker players. “We haven’t lost all faith in retail,” says Patterson. “The winners will be the ones that can pivot swiftly and speak directly to new consumer demands, whether that’s convenience, sustainability, or unique brand experiences.”

As the new year dawns, the big question is whether the closures of 2024 were the final stage of a decade-long retail culling, or merely the prelude to another year of belt-tightening and bankruptcies. For now, watchers of the sector agree that more store closing announcements may well be in store—especially for those lacking a strong e-commerce strategy, brand identity, or cost structure nimble enough to adapt to an unpredictable economic climate. In short, 2025 might still have its share of heartbreak for retailers unwilling or unable to evolve.