Fast-fashion chain Forever 21 has filed for bankruptcy and announced its closure of all US stores. The retailer’s demise is the latest in a string of major retail casualties, with other notable closures including Party City, Big Lots, Kohl’s, and Macy’s.
According to Coresight Research CEO Deborah Weinswig, retailers struggled with sales due to competition from online retailers and increased merchandise costs. Consumers’ increasing preference for online shopping took a toll on brick-and-mortar stores, leading to significant store closures in 2025.
The retail industry is experiencing a severe downturn, with major retailers announcing fewer openings and more closures than usual. Big Lots declared bankruptcy and shut down most of its stores, while Party City filed for bankruptcy for the second time in two years.
While store closures may not affect overall prices of goods, it’s essential to be aware of potential changes in policies and gift card usage. Forever 21 is honoring existing gift cards, but users have until April 15 to redeem them. It’s also crucial to shop around and compare prices for items you want, as retailer gift card discounts may no longer apply.
As consumers seek alternative shopping options, online retailers like Shein and Temu are capturing market share. Retailers must adapt to changing consumer preferences and invest in technology to remain competitive.
Source: https://finance.yahoo.com/news/retailers-expected-close-15-000-123200560.html