This year was not friendly to chain stores in NYC.
Retail giants continued to decline in 2025, even as new and fun brands fueled their growth in certain sectors, according to a report released on Wednesday. An astonishing 18 national chains shuttered all of their shops in the five boroughs.
The total number of chain stores across the five boroughs fell for the sixth time in the past eight years—declining 1.3% citywide, or a net loss of 112 stores since last year, according to the Center for an Urban Future’s (CUF) annual State of the Chains 2025 report on Dec. 17.
Per the report, the decline was driven by long-established national big-box stores. Seven of New York’s 10 largest chains reduced their footprints this year, led by Starbucks, which closed 42 stores—the most of any retailer that did not fully exit the market.
Claire’s, Staples, Old Navy, Duane Reade, and Juice Press also experienced steep reductions, analysts said.
“New York’s retail landscape is undergoing a profound shift,” said Jonathan Bowles, executive director of the Center for an Urban Future. “Legacy chains continue to cut back in NYC, but this year’s findings show strong momentum among newer chains, especially food and beverage retailers.”
The report said that the 18 chains that closed all of their NYC shops represented the second-highest number on record outside the pandemic year of 2020.
Rite Aid was one of the most prominent closures in 2025. The company shut its remaining New York stores in May after long-standing financial issues.
Other stores that closed their Big Apple locations this year include Party City and Forever 21.
In brighter news, analysts highlighted “significant growth from newer entrants” that they said are reshaping the city’s retail environment. Twenty-two retailers not present in CUF’s 2019 survey now have at least 15 stores in the city, including rapidly expanding chains such as Five Below, Blank Street Coffee, Naya, Van Leeuwen, Ideal Food Basket and Club Pilates.
Dunkin’ wins top honors as the city’s largest retailer — even beating out Starbucks
Likely not surprising to most New Yorkers, Dunkin’ is overwhelmingly popular in the city. It remained at #1 for the 18th consecutive year and is now the top retailer in every borough, with 623 total locations. This is the first year Dunkin’ has surpassed Starbucks as Manhattan’s top chain.
Despite the victory for Dunkin’ and other retailers in the report, the number of chain stores is far below pre-pandemic levels. Chain locations in the city experienced a shocking 1,397 net loss since 2019.
Reasons for the decline of chain stores in NYC
Even more alarming is that more than half of all retailers tracked in 2019 have fewer locations today, and 58 have closed entirely.
While the study did not look into why retail chains are declining, merchandise retailers suffered losses that coincide with a trend playing out since 2017. This is when e-commerce began affecting retailers selling clothing, accessories, shoes, cosmetics, shoes, and more recently cell phones and pharmacy staples, the research notes.
In fact, pharmacies contracted by 62 stores: Rite Aid closed all 46 remaining locations completely, Duane Reade reduced its footprint by 15 stores (from 189 to 174), and CVS declined by 2 stores (from 160 to 158).
As for the decline of larger department store chains, reports have said consumers are more interested in fast-fashion and discount chains. According to Concordia University in St. Paul, this can make it harder for other retailers to stay competitive in price.
