A significant wave of corporate bankruptcies, with over 32 companies filing for bankruptcy in the past year, is poised to benefit several retail giants. These “mega bankruptcies,” defined as filings by companies with assets exceeding $100 million, have created opportunities for other businesses to attract customers seeking alternatives. According to S&P Global, more than 655 corporate entities have declared bankruptcy in the first ten months of 2025, marking a potential peak in major bankruptcies not seen in over a decade.
Industry analysts from UBS, led by analyst Michael Lasser, have identified key players likely to benefit from this trend. The report highlights that retailers such as Walmart, Dollar Tree, and Dollar General stand to gain significantly from the closures of competitors like Claire’s and Rite Aid. These businesses are well-positioned due to their proximity to the locations of the bankrupt retailers, which is expected to increase foot traffic.
Data from UBS indicates that approximately 67% of Dollar Tree locations are within a five-minute drive of a Claire’s store, and 87% of Dollar Tree outlets are within ten minutes of Rite Aid locations. Lasser noted, “From a proximity perspective, we believe DLTR, DG, and WMT are better positioned than others, given their higher Competitive Incidence scores within a 10-minute distance from Rite Aid stores,” as reported by Business Insider.
The initial predictions appear to be materializing. Recently, Dollar Tree reported a noticeable increase in customer traffic and a shift in consumer behaviors. The company announced a quarterly same-store sales growth of 6.5% and adjusted earnings per share of $0.77 in its latest earnings release. Notably, households earning over $100,000 annually have contributed significantly to this growth.
Dollar Tree’s CEO, Mike Creedon, commented on the performance, stating that while the company’s core lower-income customer base remains strong, there is also a “meaningful uptick” in middle- and higher-income households. Retail analysts suggest that this trend is being observed across the entire discount sector, as consumers seek value amidst economic fluctuations.
As the retail landscape continues to shift, the surge in bankruptcies presents both challenges and opportunities. Companies that can adapt to changing consumer preferences and leverage the fallout from competitors’ closures are likely to thrive in this evolving market. The coming months will reveal how these dynamics will shape the future of retail in a post-bankruptcy landscape.
