Shoppers Shocked! Nearly 100 Retail Stores Closing in Iowa, Illinois, and Wisconsin

In a significant blow to shoppers, several major discount retail chains are shutting down locations across Iowa, Illinois, and Wisconsin. These closures are part of a broader trend affecting the retail sector as businesses struggle with financial hardships, shifting consumer habits, and growing competition from online shopping giants.

From well-known brands like Big Lots, Joann Fabrics, Kohl’s, Save A Lot, and SpartanNash, these closures will impact communities that have relied on these stores for years. With nearly 100 stores shutting down, local economies and employees will feel the brunt of these changes.

Let’s examine what’s happening, why these retailers are closing, and what it means for shoppers in the Midwest.

Big Lots Closes Multiple Stores Following Bankruptcy

Big Lots, a national discount retailer, has announced the closure of several locations, including multiple stores in Iowa, Illinois, and Wisconsin. The company filed for bankruptcy in September 2024, citing rising operational costs, declining sales, and increased competition from e-commerce platforms.

Big Lots has been struggling for a while. At the time of its bankruptcy filing, the company was drowning in $3.1 billion in debt, owed to approximately 10,000 creditors. With a rapidly declining net worth, the retailer had no choice but to shut down numerous stores to stay afloat.

Joann Fabrics Goes Out of Business

A longtime favourite for craft enthusiasts, Joann Fabrics is closing all its stores after more than 80 years in business. The company filed for bankruptcy in mid-January 2025 and has confirmed that all locations, including those in Iowa, Illinois, and Wisconsin, will close permanently.

Joann Fabrics had been facing financial difficulties for years due to declining customer traffic, competition from online retailers, and supply chain disruptions. Despite efforts to recover, including store remodels and loyalty programs, the business ultimately couldn’t sustain itself.

For many communities, this closure means losing a one-stop shop for quilting, knitting, and craft supplies. Many small business owners who depended on Joann Fabrics for materials will now need to find alternative suppliers.

Kohl’s Shutters 27 Underperforming Stores

Department store giant Kohl’s has also joined the list of retailers closing stores. The company recently announced plans to close 27 underperforming locations, including stores in Illinois, by April 2025.

According to Kohl’s CEO Tom Kingsbury, closures are a strategic decision that improves the company’s financial health. Kohl’s has been facing a drop in sales over the last few years, with more shoppers choosing to buy online rather than visit physical stores.

Employees impacted by the closures will receive severance packages or be given opportunities to transfer to other Kohl’s locations.

Save A Lot Closing After 28 Years in Cedar Rapids

Discount grocery chain Save A Lot is also shutting down one of its longest-running locations in Cedar Rapids, Iowa, after 28 years of serving the community.

Owners Jim and Robin McVeigh confirmed that they would close the store by Christmas 2024, citing retirement as the reason for the shutdown. However, Cedar Rapids residents won’t have to wait long for a replacement—another grocery store is expected to take over the space in early 2025.

Despite this closure, Save A Lot continues to operate approximately 900 stores across 32 states.

SpartanNash Closes Multiple Grocery Stores

Grocery chain SpartanNash has announced that it will be closing four stores in the Midwest as part of a cost-cutting strategy. The affected locations include stores in:

• Chippewa Falls, Wisconsin
• Glenwood, Iowa
• Caro, Michigan

These closures will lead to over 120 layoffs, impacting workers who have been part of the company for years. According to SpartanNash, the decision comes as more shoppers turn to budget-friendly options like Dollar General rather than traditional grocery stores.

Why Are These Retailers Closing?

While each company has its own reasons for closing stores, there are several common factors contributing to these shutdowns:

1. E-Commerce Competition – With more people shopping online, brick-and-mortar stores are losing foot traffic. Retailers that fail to adapt to this shift struggle to survive.
2. Economic Pressures – Inflation, rising rent costs, and supply chain issues have made it harder for physical stores to stay profitable.
3. Changing Consumer Preferences—Shoppers are looking for convenience and better deals, so they prefer online shopping or discount stores like Walmart and Amazon.
4. High Operational Costs – Large retailers with big storefronts and high employee costs find it challenging to compete with leaner, online-only businesses.

Impact on Local Communities

The closure of nearly 100 stores across Iowa, Illinois, and Wisconsin will have a major impact on local communities. Here’s how:

• Job Losses – Hundreds of retail workers will be out of a job, affecting families and local economies.
• Fewer Shopping Options – Many communities, especially in smaller towns, may lose their only discount or grocery store.
• Real Estate Vacancies – Empty storefronts can negatively impact shopping centres and local businesses nearby.

For many customers, these closures mean the end of familiar shopping experiences. Whether it’s grabbing discounted home goods at Big Lots, buying crafting supplies at Joann Fabrics, or picking up groceries at Save A Lot, these changes will reshape how people shop in the Midwest.

Future Outlook for Retail Stores

While store closures are always unfortunate, there are ways for retailers to adapt and survive in the changing market:

• Stronger Online Presence – Investing in e-commerce and digital sales can help retailers capture lost revenue.
• Omnichannel Shopping Experiences – Offering a mix of online and in-store shopping helps retain customers who prefer both options.
• Better Customer Engagement – Loyalty programs, personalized promotions, and exclusive discounts can attract repeat shoppers.
• Smaller, More Efficient Stores – Many companies are reducing store sizes to lower costs while still maintaining a physical presence.

Despite the current challenges, many retailers are finding innovative ways to stay relevant and compete in the modern market. However, the wave of store closures in Iowa, Illinois, and Wisconsin serves as a clear warning sign—retail is changing, and businesses must evolve to survive.

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Disclaimer: This article has been meticulously fact-checked by our team to ensure accuracy and uphold transparency. We strive to deliver trustworthy and dependable content to our readers.