All across the U.S, it seems like more and more retail stores are permanently closing. Stores are having liquidation and going-out-of-business sales even in Santa Barbara county. Big “ENTIRE STORE 60-80% OFF” and “NOTHING HELD BACK” signs are plastered on the most unexpected stores, yet for many, they’ve seen it coming. Now people may wonder, why are so many stores suddenly going out of business? Well the answer is as simple as it seems. Numerous shops are closing because of the increase of online shopping, like Amazon, and competition from big retailers, and even from people just not buying. But the main reason is inflation. People are being hit with the biggest inflation in 40 years, and so are retail stores. Rising prices force customers to pause on the spending, and increased mortgage rates cause businesses, especially ones that are already struggling to pick the easier route and declare bankruptcy. So now that we know the reasons, let’s see what stores have closed or are expected to in 2025.
First off on the list is Big Lots. Big Lots has published on social media that the stores are on their “final weekend”. This company had around 1,300 stores in all 48 states, but after the major closings, there were only 366 left. Here in Lompoc, we were also hit by this wave since the Big Lots that just opened 2 years ago had permanently closed in January 2025. Thankfully, however, they plan on soon opening 200 new locations under new management.
Next we have Party City. They had filed for bankruptcy in December 2024, and had discounts up to 80% off. The party supplies company had announced they were permanently closing all 800 stores after 40 years in business. This too affected our local Party City in Santa Maria. And as of March 20th, 2025, only a few Party City locations remain open.
The most shocking one is Macy’s. This clothing retail store has been known as a signature shopping spot in the mall, and it’s surprising how they are closing these stores worldwide. Macy’s announced in February 2024 that they plan on closing more than 150 stores by 2026, more than one third of its current locations. Clearance sales have started at the selected closing locations and are expected to run for approximately six weeks. Luckily, the Macy’s located in the Santa Maria Town Center is not permanently closing.
Leading back to stores in the mall, Kohl’s is also closing a small amount of stores. In January, Kohl’s announced that they would close 27 underperforming stores by April 2025, so it’s only around 3% of their stores. It’s a smart action made since they will have a healthier revenue intake without these underachieving stores being in the way. Thankfully, however, the closest Kohl’s to Lompoc will remain open.
Are you in need of fabric samples or cutters at Joann’s? Well start looking since Joann’s has filed for bankruptcy as of February 2025. They announced that they plan on closing over 500 out of its 800 locations. The clearance sale is only in-store and discounts are up to 50% off, as of March 11th, 2025. However, people need to be careful since many are taking advantage of this and are creating fraudulent websites to scam people into buying nonexistent items. The Joann’s located in Santa Maria will be one of the 300 locations remaining open.
Finally, we have Dollar General. In a news release, Dollar General announced that they plan on closing 96 locations, but also plan on converting six pOpshelf stores into Dollar General stores by the fiscal year January 2026. However, last year, the company opened over 700 new stores, so it isn’t as impactful as it seems. The closers are to happen by May of 2025. It is yet to be specified if the Dollar General located in Lompoc will be permanently closing too.
So although it all may seem bad, some closers happen for the better of the company, and others so the store doesn’t continue to suffer. But overall, everything happens for a reason and here in Santa Barbara County, thankfully, we aren’t as affected with these closures than other counties.
