In 2026, the retail landscape is poised to experience significant change as nearly 300 stores across various sectors prepare to close. This wave of closures continues a pronounced trend observed in recent years, where numerous retailers have been consolidating physical locations in response to shifting market dynamics.
Key players in the retail space have announced multi-year plans to shutter a sizeable number of outlets amid ongoing challenges facing the industry. Notably, enterprises such as Macy’s and Kroger are spearheading these efforts, aiming to optimize operational efficiency by concentrating on top-performing venues and enhancing their online platforms.
Research from retail data and consulting firm Coresight Research has consistently highlighted this trend. Their projections estimated that approximately 15,000 retail locations would cease operations in 2025 alone, underlining the widespread nature of this restructuring.
Building on this trajectory, close to 270 closures have already been identified for 2026. Among these, Carter’s, a prominent North American retailer specializing in children’s and baby apparel, plans to close 150 stores across the continent over a three-year horizon. This strategic move aligns with a broader industry pattern of paring down less profitable locations to strengthen digital sales channels.
Macy’s has similarly announced intentions to shut down 150 stores operating under its brand through 2026. This downsizing effort aims to streamline store operations and redirect resources toward elevating the online customer experience and focusing on its most lucrative stores. Sources such as Business Insider have reported that this approach is central to Macy’s adaptation strategy amidst an increasingly digital consumer base.
Kroger, a significant player in the grocery sector, has indicated plans to close 60 stores deemed unprofitable across the United States. These closures will take place over an 18-month period commencing in June 2025. The company's emphasis on shuttering loss-making outlets reflects an ongoing industry effort to balance physical presence with the growing demand for convenience and digital shopping alternatives.
Another notable contributor to the 2026 store closure roster is Newell Brands, which will shutter 20 Yankee Candle stores across the US and Canada starting January 2026. This move is part of Newell’s strategy to reallocate resources and align its retail footprint more closely with evolving market conditions and consumer preferences.
Additional closures are on the horizon for other retailers as well. For instance, certain Saks Off 5th stores are slated for closure early in 2026, while REI plans to close three of its stores within the first quarter of the year. These decisions further reflect the sector-wide reassessment of brick-and-mortar store viability in the face of shifting consumer behavior and the acceleration of e-commerce trends.
The retail industry continues to encounter numerous challenges, particularly the increasing dominance of online shopping and altered consumer purchasing habits. The pandemic played a catalytic role in accelerating these transformations by incentivizing retailers to reconsider the economic viability of physical stores. Consequently, many companies are opting to shutter underperforming outlets to prioritize investment in digital platforms and improve operational efficiency.
This ongoing adjustment within retail is expected to persist well into 2026, with both large chains and niche players announcing closure plans. As these adjustments unfold, the impact on the retail landscape and consumer shopping patterns is anticipated to be marked, warranting close attention from industry stakeholders and analysts alike.