Brick and mortar closures are at an all-time high, and layoffs and job cuts are increasing every day. This has little to do with who is in office and more to do with the times we live in. The surprising fact is these closures are occurring at a time when consumer demand is high. Last year, consumer spending was strong and Americans spent more in-store than they did online. Yet because shoppers prioritize convenience and savings, major retailers like Walmart and Cosco are growing while smaller retailers are struggling to keep their doors open.
Competition is contributing to brick and mortar closures because the deals online retailers like Amazon and Temu can offer can’t be beat by small retailers carrying large overheads. The retail advisory firm has predicted 15,000 brick and mortar closures this year including Walgreen’s, Party City, Big Lots, 7-Eleven, and Macy’s locations. Specialty retailers had the largest number of store closings in 2024. Dollar Tree, rue21, and CVS closed hundreds of locations each after their parent companies filed for bankruptcy protection. Recently Joann Fabrics announced they are closing all of their 800 locations after 82 years in business.
With closures come job cuts and layoffs, and nearly half of U.S. managers say their company will likely reduce staff during 2025. The reasons behind the reduction in workforce range from store closures to automation and artificial intelligence, to overstaffing but the result will remain the same. If you lose a job in 2025, you will likely have a difficult time finding a new one. Many companies will use strategy to drive out top talent by reducing salaries and cutting bonuses. After the top-earners leave, they’ll be able to consolidate positions and hire young talent for a lot less money.
If you lose your job because of brick and mortar closures or cuts due to the implementation of AI in the workplace, you have the right to apply for unemployment. After applying, research headhunters or recruiters in your area who can help you find leads for jobs you may be interested in. Revamping your resumé and deleting any information that may hint towards your age can prevent algorithms from removing you from consideration. And when asked for your required salary on an application, put zero. You can discuss salaries if and when you get an interview.