American Eagle Outfitters is closing 35 stores nationwide, a move that reflects the ongoing challenges faced by brick-and-mortar retailers. This decision comes as part of a broader restructuring plan that also involves shutting down logistics and fulfillment centers. The closures are spread across various states, with Pennsylvania seeing three store shutdowns, including locations in Monroeville, State College, and Selinsgrove.

The retail apocalypse, exacerbated by the Covid-19 pandemic, has led to substantial store closures. In 2025, approximately 8,100 chain stores closed, marking a 12% increase from 2024, according to Coresight Research data. This trend is driven by fierce competition, shifting consumer preferences towards e-commerce, and rising operational costs, including labor and inflation-driven expenses.

American Eagle's store closures are part of a larger trend in the retail sector, where overbuilt infrastructure and shifting consumer habits are forcing retailers to reevaluate their physical presence. For instance, Walmart acquired the Monroeville Mall property for $34 million with plans to redevelop it into a mixed-use site. This strategy allows American Eagle to focus on more profitable operations and prioritize its core brands.

As the retail landscape evolves, other major retailers like Macy's, JCPenney, and Nordstrom are also closing locations. Macy's, for example, plans to shut down 14 stores in 2026 as part of its "Bold New Chapter" restructuring. Retailers are now focusing on profitability and optimizing their physical footprint in response to market shifts.