Brick-and-Mortar Store Closures

The growth of e-commerce has led to a decrease in physical retail spaces, particularly impacting large commercial formats like shopping malls and department stores. As many as 15,000 stores are predicted to close in 2025 — more than double the 7,325 closures in 2024 — due to the rising dominance of e-commerce, increased borrowing costs, and consumer spending cutbacks due to inflation. This trend is based on the expectation that e-commerce's share of total retail sales will continue to grow. An analysis by UBS Investment Bank suggests that for every one percent increase in the proportion of sales made online, approximately 8,000 physical stores will close.

This trend underscores the significant impact of digital shopping on traditional brick-and-mortar retail outlets. Planners should understand what this means for the economic health of their communities and what the potential options are for innovative and alternative uses for vacant large-scale commercial sites. The APA Research Knowledgebase collection "Grayfields Reuse and Redevelopment" offers relevant regulatory and policy solutions.