Popular retail chain closes dozens of stores, no bankruptcy

Consumers likely noticed more empty storefronts in malls and shopping centers in 2025, as retail chains shuttered 1,000s of locations in restructuring efforts.

The retail apocalypse, which has persisted since the Covid-19 pandemic, led to about 8,100 chain store closings in 2025, which is a 12% increase compared to 2024, according to Coresight Research data, CBS News reported.

Retail chains cite many of the same reasons for their economic problems, including fierce competition and evolving consumer spending habits away from brick-and-mortar shopping to online spending. They also face rising labor and product costs driven by inflation and increased tariffs.

Overbuilt retail leads to closings

Some experts believe the chickens have come home to roost after rampant mall and shopping center development from the 1960s and continuing into the new millennium.

As the internet expanded in the mid 1990s and e-commerce began to grow, foot traffic in shopping centers and malls diminished significantly.

"America has been over-retailed," Ward Kampf, president of retail development and management firm Northwood Retail, told the Daily Mail. "We built and built, focusing on growth, expansion, and development, and now the focus is on profitability, performance, and margins."

National retailers are reducing their brick-and-mortar footprints to eliminate locations that no longer make economic sense.

American Eagle closes 35 locations

Popular retail apparel chain American Eagle Outfitters has closed three stores in Pennsylvania as part of its restructuring plan to close 35 locations nationwide.

American Eagle closed stores in the Monroeville Mall in Monroeville, Pa., the Nittany Mall near State College, Pa., and at the Susquehanna Valley Mall near Selinsgrove, Pa., all on Jan. 11, NorthcentralPA.com reported.

The retail chain has not said how many employees will be affected by the 35 store closings.

Customers' other American Eagle options for shopping in the Pittsburgh area include: Ross Park Mall, South Hills Village, Mall at Robinson, Westmoreland Mall, Cranberry Mall, and Tanger Outlets in Washington County.

Walmart to redevelop mall into mixed-use

The Pittsburgh-based retail chain closed the Monroeville Mall location after Walmart bought the property in February 2025 for $34 million with plans to redevelop the site over the next couple of years, according to WTAE-TV reports.

Demolition of the mall will begin on April 1, 2027, followed by the development of the mixed-use Monroeville Mall Gateway.

American Eagle also announced the closings of other divisions, including its Quiet Logistics business for third-party customers and three of its fulfillment centers, as the company was unable to attract enough business to continue operating, Supply Chain Dive reported.

“This strategic decision will enable [American Eagle] to prioritize growth and focus on its portfolio of leading lifestyle brands,” the company wrote in an email.

The retailer, which acquired Quiet Logistics in 2021, was unable to grow its third-party logistics business and instead operated Quiet as an American Eagle regionalized fulfillment center network.

Retailer closing logistics and fulfillment centers

American Eagle will discontinue third-party logistics services over the next several months and will close operations at its Boston and Dallas fulfillment centers in the first half of 2026.

The company had previously announced that its La Palma, Calif., fulfillment center would close this year, but its Atlanta fulfillment center will continue to provide distribution services for American Eagle brands.

Department stores close locations

American Eagle's store closing efforts follow several other national retailers, including Macy's, JCPenney, Nordstrom, and Marshalls, who have shut down locations.

Macy’s will close 14 locations in 11 states in 2026 as part of its “Bold New Chapter” restructuring plan, which it launched in 2024, Axios reported.

Marshall’s closed two stores this year, located in Los Angeles and San Jose, Calif., before Jan. 5.

JCPenney closed about eight stores, and Nordstrom shut down at least two last year.

American Eagle store closings

• Monroeville Mall in Monroeville, Pa.
• Nittany Mall, State College, Pa.
• Susquehanna Valley Mall, Selinsgrove, Pa.

Related: Another major retail chain closes warehouse operations