The headline figures are striking enough to deserve saying plainly before anything else.
8,234 US stores permanently closed in 2025 — the highest number ever recorded, coming in 12% higher than the 7,325 closures in 2024. Analysts now estimate that nearly 7,900 additional US stores will close in 2026, with more than 1,200 closures already publicly announced — a figure expected to grow as companies finalize lease decisions and restructuring plans throughout the year.
Put those numbers together and you’re looking at somewhere between 15,000 and 17,000 store closures across a two-year window. That’s not a blip. That’s a structural reshaping of American retail — and it’s producing an extraordinary volume of closeout inventory that is actively looking for buyers.
But here’s what most coverage of this story misses entirely: the wave of closures doesn’t just hurt workers and communities. It creates the largest sustained buyer’s market for closeout merchandise in recent memory. Retailers, distributors, creditors, and liquidators are all navigating the same flood of goods hitting the secondary market simultaneously. Understanding how that works — who’s selling, what categories are most affected, which states are generating the most volume, and what it means for recovery pricing — is genuinely useful information whether you’re a seller trying to exit your own excess stock, a buyer sourcing closeout merchandise, or a business trying to make sense of the market you’re operating in.
This post gives you the real picture.
Why This Wave Is Different From Previous Retail Downturns
Retail store closures aren’t new. There was a widely covered “retail apocalypse” in 2017-2019, another significant wave during COVID, and various cycles before that. So it’s worth asking: is 2025-2026 just more of the same, or is something structurally different happening?
The honest answer is: both, but the “different” part matters more than people realize.
What’s the same: e-commerce continues to erode foot traffic for categories where in-store experience doesn’t create genuine loyalty. Mall-based retail in particular has been structurally challenged for a decade. Brands that over-expanded during the 2020-2021 consumer spending surge are now right-sizing — a predictable correction.
What’s genuinely new in 2025-2026: three forces are hitting simultaneously in a way they haven’t before.
First, the post-stimulus hangover is finally biting the middle market. Many of the largest closures trace directly to Chapter 11 filings that failed to produce a turnaround. Bankruptcy isn’t the whole story, though — some of the biggest retrenchments are coming from companies that remain solvent but are making hard strategic choices. The companies going bankrupt aren’t just ones that were always fragile. They’re businesses that survived and sometimes thrived through COVID stimulus, then ran out of runway when consumer spending normalized and interest rates rose.
Second, tariffs are compounding existing inventory stress. Carter’s cited tariffs directly in announcing 150 store closures, noting that the administration’s tariffs on imported goods have begun adding substantially to the approximately $110 million in duties it already paid in fiscal 2024. Carter’s is far from alone. For any retailer with heavy import exposure — which is most of them — tariff escalation in 2025-2026 made already-stressed balance sheets worse, accelerating decisions to close rather than continue carrying underperforming stores.
Third, pharmacy and big-box right-sizing is happening at scale for the first time. Walgreens is set to close 1,200 stores over three years and CVS is continuing its own store reduction strategy initiated in 2021. These aren’t boutique closures — they’re large-format stores with substantial inventory, generating closeout volume at a scale that’s new to the liquidation market.
The Major Closures, Broken Down by What They Mean for Inventory
Not all store closures produce the same kind of liquidation inventory. Understanding the difference is important for buyers sourcing closeout merchandise and for sellers trying to time their own liquidation efforts intelligently.
Joann (800+ Stores, Full Liquidation)
Joann announced the closure of all 800 stores nationwide, across 49 states, in February 2025, after the company failed to find a buyer that would keep its stores open and sold all of its remaining assets to financial services company GA Group.
Joann is the most significant pure liquidation event of the cycle, for two reasons: scale and category. 800 stores across 49 states means the liquidation is genuinely national — there’s no region of the country that wasn’t affected. And Joann’s merchandise — fabric, sewing notions, craft supplies, seasonal décor, yarn, framing materials — is highly specific. It’s not the same consumer goods pool that most liquidators handle. The buyers for Joann inventory are specialty craft distributors, discount chains, export buyers, and direct-to-consumer operators who know the category.
For the broader liquidation market, Joann’s closure matters not just for its own merchandise but for the signal it sends: even specialty retail with deeply loyal customer bases and clear category differentiation couldn’t survive the combination of debt loads, import cost pressure, and changing shopping patterns. The merchandise that came out of Joann stores is actively moving through secondary channels right now.
Party City (700 Locations, Complete Wind-Down)
Party City announced it was “winding down” operations entirely, with all stores expected to close by the end of February 2025.
Party City’s inventory type is distinct: party supplies, balloons, seasonal and holiday decorations, costumes, and disposable tableware. Much of this merchandise has a seasonal dimension — Halloween and holiday inventory has finite windows of resale value. The liquidation of Party City’s stock created a compressed, time-sensitive market for these categories. Buyers who moved fast in early 2025 when the stores were closing recovered significantly more than those who waited for secondary market prices to settle.
The lesson for the broader closeout market: when a seasonal retailer closes at scale, the window to recover meaningful value on time-sensitive inventory is short. Closeout buyers who specialize in seasonal goods were the primary beneficiaries of the Party City liquidation; buyers entering the market six months later found the most attractive lots were already gone.
Macy’s (150 Stores Over Multi-Year Plan)
Macy’s isn’t bankrupt. It’s executing what management calls a “Bold New Chapter” strategy — closing older, lower-productivity stores while investing in roughly 350 locations it considers its future.
This is a fundamentally different type of inventory event than Joann or Party City. Macy’s is a controlled strategic drawdown, not a fire sale. Macy’s confirmed that clearance sales would run approximately 8 to 12 weeks for full-line and small-format stores, with furniture galleries and free-standing Backstage stores running approximately six weeks.
Macy’s closure inventory spans a wide range: branded apparel, cosmetics, home goods, furniture, bedding, and housewares. The controlled nature of the liquidation — Macy’s manages the process on its own terms — means the primary opportunity for secondary market buyers is in the post-clearance phase, when remaining unsold merchandise exits the retail channel. Macy’s brand relationships also mean certain inventory may have brand-restricted resale terms. Buyers need to verify this before acquiring Macy’s-sourced closeouts.
Big Lots (Partial Survival, Massive Inventory Disruption)
Big Lots’ story is more complex than most. Big Lots filed for Chapter 11 bankruptcy in September 2024, initially announcing that all stores would shutter. In December 2024, it struck a deal that would save hundreds of its stores. The company that emerged is a fraction of its previous size, and significant inventory was already in the liquidation pipeline before the rescue deal closed.
Big Lots’ merchandise — furniture, seasonal items, home décor, food and consumables, cleaning supplies — generated a broad cross-category closeout pool. The mixed outcome (some stores rescued, others liquidated) created complexity for buyers trying to source Big Lots merchandise, but also opportunity for those who moved during the uncertainty window.
GameStop (470+ Stores Closing)
GameStop is accelerating closures with over 470 stores shutting down nationwide to start 2026, a substantially higher number than initial projections, reflecting an urgent push to cut costs and improve the company’s balance sheet.
GameStop’s inventory — video games, gaming hardware, accessories, collectibles, and electronics — is a secondary market buyer’s dream category in some respects and a challenge in others. Video game software depreciates rapidly with new console generations, but collectibles and certain hardware retain value well. The geographic concentration of closures matters here: GameStop closures are reported heavily in California, Florida, and Ohio.
Foot Locker (400 Stores by End of 2026)
Foot Locker is on track to close 400 stores by the end of 2026, focusing on exiting underperforming mall locations in favor of off-mall “power stores.” The closures primarily affect stores in lower-tier malls where foot traffic has declined, and Foot Locker is simultaneously clearing inventory to reset its merchandise mix, focusing on exclusive releases and stronger partnerships with top athletic brands.
Athletic footwear and apparel are among the strongest-performing categories in the closeout market. Branded athletic goods — even in non-current colorways or off-season styles — have deep buyer networks across discount retail, export channels, and direct-to-consumer secondary platforms. The Foot Locker liquidation is one of the more attractive inventory pools in the current cycle for buyers with retail distribution relationships.
Francesca’s, Eddie Bauer, Saks Off 5th, Carter’s
The list of significant closures extends well beyond the headline names. Francesca’s is closing all approximately 400 US locations after filing for bankruptcy protection, with liquidation sales already underway at locations nationwide. Eddie Bauer announced all 175 stores in the US and Canada will close by April 30, 2026. Saks Off 5th plans to close 57 store locations in early 2026 as part of Saks Global’s broader Chapter 11 restructuring. Carter’s announced closure of approximately 100 store locations by end of 2026 as leases expire.
Each of these represents a distinct inventory category: women’s apparel and accessories (Francesca’s), outdoor and lifestyle apparel (Eddie Bauer), off-price luxury goods (Saks Off 5th), and children’s clothing (Carter’s). The simultaneous liquidation of multiple apparel categories is putting particular pressure on closeout pricing for clothing — a point we’ll return to below.
Which Inventory Categories Are Most Affected?
The retail closure cycle of 2025-2026 is not hitting all merchandise categories equally. Here’s an honest assessment of what’s flooding the market and what the supply/demand dynamics look like right now.
Apparel and Accessories: Heavily Flooded
This is the category most affected by the current closure wave. Closures at Joann (seasonal fabric and craft), Party City (costume and seasonal), Macy’s (branded department store apparel), Francesca’s (women’s accessories and clothing), Eddie Bauer (outdoor apparel), Forever 21, and multiple specialty chains have created a sustained oversupply of clothing and accessories in the closeout market.
Analysts see the most closures concentrated among clothing and accessories retailers, consumer electronics closeout businesses, and home furnishing chains — approximately 23,500 cumulatively across these categories over a multi-year period.
The practical impact for buyers: competition for apparel closeouts is high, prices are compressed relative to historical norms, and selectivity matters. Branded athletic apparel (from Foot Locker) and premium outdoor gear (from Eddie Bauer) retain value better than fast-fashion or mid-market apparel, where the secondary market is most saturated.
For sellers holding apparel surplus, the message is: move it now, because this category will only get more competitive as additional closures continue feeding supply into the secondary market through 2026.
Home Goods and Décor: Active Market, Good Recovery
Big Lots, Macy’s (home department), and various specialty home retailers have released significant home goods inventory into the closeout market. Buyers for this category are plentiful: discount retail chains, off-price stores, e-commerce resellers, and export buyers all compete for home goods closeouts.
Home goods tend to hold value reasonably well in the secondary market because the category is less brand-sensitive than apparel — a set of quality bath towels or a kitchen gadget sells based on function and condition, not which specific store it came from. Recovery rates for home goods closeouts in 2025-2026 have been relatively stable despite the volume hitting the market.
Craft and Hobby Supplies: Specialized Buyer Pool
Joann’s liquidation created a specific and somewhat limited buyer pool for craft and sewing merchandise. The category has enthusiastic retail buyers — independent craft stores, dollar stores stocking seasonal craft items, and specialty discount retailers — but it’s not a universal category the way consumer electronics or general merchandise is. If you’re holding craft supply inventory, the right buyer matters enormously here. A general liquidator without craft retail channels will underprice this inventory relative to what a specialist will offer.
Party and Seasonal Goods: Time-Sensitive, Already Compressed
Party City’s full closure in early 2025 flooded the market with party supplies and seasonal decorations at a specific moment in the calendar cycle. Most of that inventory has already been absorbed or has depreciated significantly. For sellers still holding party supply or seasonal decoration inventory, the recovery rate now is materially lower than it was in the immediate post-closure window. This is the starkest example in the current cycle of why timing matters in closeout liquidation.
Consumer Electronics and Gaming: Selective Opportunity
GameStop’s 470+ closures are releasing gaming hardware, accessories, and collectibles. This category has strong buyer demand but also fast depreciation curves — current-generation hardware holds value, last-generation hardware doesn’t. The collectibles and memorabilia component of GameStop’s inventory tends to perform better in the secondary market than the software and hardware, which face rapid technological obsolescence.
Health, Beauty, and Pharmacy: Emerging Volume
The Walgreens and CVS closures are beginning to contribute health and beauty inventory to the closeout market — over-the-counter products, personal care items, branded cosmetics, and wellness goods. This category has historically strong recovery rates in the secondary market because it’s genuinely consumed and repurchased. Buyers for pharmacy closeout inventory include dollar stores, discount chains, international export buyers, and medical aid organizations for certain categories.
Which States Are Most Affected
The retail closure wave is national, but it isn’t evenly distributed. Some states are absorbing significantly more closure volume than others.
Macy’s is closing stores most notably in California, New York, and Florida, as part of its strategy to stabilize operations, focusing on underperforming spots in suburban and urban areas where foot traffic has declined.
GameStop closures are concentrated in California, Florida, and Ohio. Macy’s confirmed closures in 2026 include sites in Atlanta, Georgia; Raleigh, North Carolina; and Tukwila, Washington. Kroger is planning to close 60 underperforming stores over 18 months through 2026, spanning states from California to Wisconsin.
Looking at the broader picture across all major closure announcements:
California is the single most affected state by store count, driven by high real estate costs, legislative pressure on retail operations, and the concentration of mall-based retail in a state that led the country in foot traffic decline. Virtually every major chain closure — Macy’s, Walgreens, GameStop, Francesca’s, Eddie Bauer — has significant California exposure.
New York is second, with high-profile closures concentrated in the metro area. New York City’s SoHo neighborhood is seeing several high-profile closures, including REI stores. Boston is also seeing a shakeup, with Saks Fifth Avenue and other stores set to close.
Florida, Texas, and Ohio are also heavily affected. Florida’s large mall footprint and diverse demographic market made it a major expansion target in the 2010s — meaning it’s now a major retrenchment target as chains right-size. Texas closures are concentrated in DFW and Houston, as covered in our Texas closeout buyers post. Ohio, with its historically dense mall footprint and Midwestern retail concentration, is seeing elevated GameStop and pharmacy closures.
Illinois is a significant affected market, with Chicagoland-area closures across multiple chains. Our Illinois bulk inventory buyers guide covers the specific liquidation landscape for the Chicago market.
The Northeast and Midwest generally are seeing more mall-based closure impact, while the South and high-growth Sunbelt metros (DFW, Houston, Nashville, Phoenix) are seeing less closure pressure because population growth has kept consumer demand stronger. The irony is that strong retail markets like Texas and Florida actually have more active closeout buyers — because the buyer infrastructure follows population and commercial density regardless of where the closures are concentrated.
What Happens to Inventory When a Store Closes: The Actual Process
Most people have a vague understanding that closing stores hold “going out of business” sales, but the mechanics of what actually happens to inventory — and how it flows into the secondary market — are worth understanding clearly.
Stage 1: In-Store Clearance Sales (Weeks 1-8)
When a retailer decides to close a location, the first phase is typically a consumer-facing clearance sale. Discounts start moderate (20-30%) and deepen as the close date approaches. By the final days, surviving inventory is often marked down 50-80%. This phase exists to maximize consumer sell-through. What doesn’t sell to consumers in this phase moves to Stage 2.
Stage 2: Bulk Liquidation of Remaining In-Store Stock
What remains after consumer clearance is purchased in bulk by wholesale liquidators — often as entire store lots or by category. Professional liquidation firms like Hilco Global, Gordon Brothers, and similar companies specialize in managing this process for retailers in bankruptcy. They buy the remaining inventory at deeply discounted prices, often 5-25 cents on the retail dollar depending on category and condition, and redistribute through their own secondary channels.
Stage 3: Warehouse and Distribution Center Stock
This is the part of retailer closures that most coverage ignores entirely, but it’s often where the largest inventory volumes exist. When a retailer closes, its distribution centers and forward-deployed warehouse inventory also need to liquidate — often faster than store inventory because the lease clock on warehouse space is merciless. DC-sourced inventory is typically in better condition than store inventory (it hasn’t been handled by consumers) and comes in larger, more uniform lot sizes. This is the most attractive inventory for bulk closeout buyers who need volume and consistency.
Stage 4: Returned and Refused Goods
Store closures often surface merchandise that was in transit, on order, or in the returns pipeline. Suppliers whose orders were cancelled mid-transit, goods that arrived at DC after the closure decision, and customer return flows that were still processing — all of this creates additional closeout inventory that needs disposition. This is frequently the most price-compressed inventory in the cycle because it hits the market after the high-attention clearance window has closed.
Understanding which stage you’re buying or selling in matters. Stage 1 is a consumer market. Stages 2, 3, and 4 are where professional bulk buyers operate — and where the recovery rate dynamics for sellers are meaningfully different from what a consumer-facing clearance sale suggests.
What This Means for Sellers Holding Their Own Excess Inventory
Here’s the part most articles about retail closures skip: what does this market environment mean for businesses holding their own surplus inventory that isn’t connected to a store closure?
The answer is nuanced and important.
Buyer activity is high, but buyer selectivity is also high.
The flood of retail closure merchandise into the secondary market means buyers have more options than usual. A buyer who might have accepted a mediocre inventory lot in a thin market now has better alternatives. This means sellers need to present their inventory professionally — clean documentation, honest condition disclosure, organized lot structures — to compete for buyer attention.
Pricing in flooded categories is compressed.
If you’re holding apparel surplus, home goods, or party supply inventory, you’re competing with institutional-scale liquidation from major chain closures. Expect buyer offers in these categories to reflect market conditions, not just your cost basis. Timing and channel selection matter more than they did two years ago.
Categories not being flooded by closures still command strong pricing.
Industrial components, food and grocery overstock, health and beauty, specialty tools, and electronics accessories are not being flooded by the current retail closure cycle in the same way apparel and home goods are. If your inventory falls into less-saturated categories, your negotiating position with buyers is actually strong right now.
The right buyer for your specific inventory matters more than ever.
In a high-volume market, a generalist buyer is less useful than a specialist with category-specific distribution. A buyer who specializes in apparel — with off-price retail relationships and export channels — will offer meaningfully more for a clothing lot than a generalist who will simply push it into the same oversaturated pool. Invest time in finding the right match.
For Buyers: Opportunities and Pitfalls in the 2026 Closeout Market
If you’re a business sourcing closeout merchandise; as a discount retailer, reseller, e-commerce operator, or export buyer — the current market is genuinely attractive but has real pitfalls.
The opportunity is obvious: volume is high, prices in many categories are at cycle lows, and sourcing options are wider than they’ve been in years. The pitfalls are less obvious.
Condition variance in closure merchandise is significant.
Store-liquidated inventory that went through weeks of consumer-facing clearance has been handled extensively. Expect higher rates of damaged packaging, missing components, and display wear than you’d see in direct-from-distributor closeout merchandise. Price accordingly and inspect before committing to large purchases.
Brand restrictions are real and enforced.
Many brands have agreements with retailers about where their merchandise can be sold in secondary markets. A lot of Macy’s or Foot Locker merchandise may come with brand-authorized resale restrictions that limit your ability to sell through certain channels. Verify these terms before purchasing branded closeout merchandise.
The market is moving fast.
The most attractive lots in the closure market go quickly. Buyers who have pre-existing relationships with liquidators get first access. If you’re entering this market for the first time, expect to see that the best opportunities are often already allocated by the time they’re publicly visible.
LiquidateProducts: Navigating the Market With You
Whether you’re a seller trying to move excess inventory in a market flooded with competition, or a business trying to understand how the current retail closure wave affects your categories, LiquidateProducts.com is actively buying across all major categories affected by the 2026 closure cycle.
We purchase consumer goods, apparel, home goods, electronics, health and beauty, sporting goods, toys, and general merchandise — from individual businesses and at scale. We work across all major US markets including Illinois, Texas, and nationally.
Submit your inventory for a free evaluation and get a direct market-rate offer — no auction timelines, no consignment complexity, no ambiguity.
Frequently Asked Questions
Is the retail apocalypse really happening, or is it overblown? The closures are real and historically significant. 2025 saw the highest number of US store closures ever recorded. What’s “overblown” is the idea that all retail is dying — strong retailers with clear value propositions and good real estate are doing fine. What’s actually happening is an accelerated culling of weak formats, over-leveraged balance sheets, and stores in locations that no longer generate the foot traffic to justify their existence.
Who buys inventory from closed retail chains? The professional liquidation market handles most large-scale retail closure inventory. Firms like Hilco Global and Gordon Brothers buy from major bankruptcy estates. Smaller regional and national liquidators — including LiquidateProducts.com — purchase from businesses at all scales. The inventory ultimately flows to discount retailers, dollar stores, off-price chains, export buyers, e-commerce resellers, and direct-to-consumer secondary market operators.
Is now a good time to buy closeout merchandise for resale? In categories not being flooded by the closure wave — specialty goods, industrial, food and grocery, health and beauty — yes. In heavily flooded categories like apparel and home décor, be selective and price-conscious. The market has more supply than usual, which is good for buyers on price but requires more care about category selection and condition.
What’s the difference between a bankruptcy liquidation and a strategic store closure? Bankruptcy liquidation (Joann, Party City) typically produces faster, deeper-discounted inventory flow. The mandate is to liquidate quickly to satisfy creditors, so pricing reflects urgency. Strategic closures (Macy’s, Foot Locker) are more controlled — the company manages the process on its own timeline, prices are more rational, and inventory comes out in a more orderly way. Both produce secondary market inventory, but the characteristics and buyer dynamics are different.
How do tariffs connect to the retail closure wave? Tariffs have worsened balance sheets for retailers with heavy import exposure, accelerating closure decisions at companies already under financial pressure. Carter’s specifically cited tariff impact in announcing closures. For the liquidation market, this means some of the closeout merchandise hitting secondary channels in 2026 is there partly because import cost increases made it impossible to sell profitably at original retail prices — which is related to but distinct from the broader tariff excess inventory problem affecting importers directly.
Conclusion
The retail closure wave of 2025-2026 is the largest sustained burst of closeout inventory to hit the US secondary market in modern history. It’s driven by a combination of structural factors — e-commerce displacement, over-leveraged balance sheets, tariff pressure, and consumer spending normalization — that aren’t going to reverse quickly.
For the liquidation market, this creates both pressure and opportunity. The pressure is on pricing in flooded categories and on sellers who need to compete for buyer attention in a crowded market. The opportunity is in the sheer volume and variety of merchandise moving through secondary channels, and in the buyer infrastructure that’s actively engaged and purchasing.
The businesses that navigate this best — whether they’re buying closeout merchandise or selling their own surplus — are the ones who understand the market clearly: which categories are saturated, which aren’t, which buyer channels match which inventory types, and why timing matters more in this environment than at almost any point in the past decade.
LiquidateProducts.com is here to help you navigate it. Get a free inventory evaluation today.
