Retail Sector Overview - The retail sector is experiencing significant challenges, with over 8,000 chain retail stores in the U.S. permanently closing in 2025, marking a 12% increase from the previous year and the highest annual total on record [1] - Many companies are pruning their store networks to improve profitability and focus on stronger markets rather than pursuing growth [2] Store Closures and Strategic Moves - Various categories are affected by closures, including department stores and apparel brands, with Macy's planning to close 14 underperforming stores across 12 states as part of a strategy to streamline its real estate footprint and enhance digital growth [3] - Saks Global, the parent company of Saks Fifth Avenue, filed for Chapter 11 bankruptcy protection, continuing operations during restructuring with $1.75 billion in financing [4] - Starbucks closed over 400 locations last year, focusing on high-volume formats like drive-thru and mobile order hubs [5] - Other chains like Party City and Joann's have reduced store counts following bankruptcy filings, while GameStop and Foot Locker are also downsizing amid strategic pivots [6] Expansion Amidst Contraction - Some value-focused chains are still expanding, with Dollar General planning to open 450 new stores in the U.S. this year, particularly in rural areas [7] - Walmart, benefiting from a 25% stock increase, continues to invest heavily in logistics and delivery, capitalizing on low prices and steady demand for essentials [7]