US Retailers Set to Continue Store Closures Into 2026 Amid Shift to Digital

By Mintesinot Nigussie
Published on 12/26/25

Major US retail chains are continuing a wave of store closures into 2026, as companies adapt to changing consumer habits and prioritise online channels, according to data tracked by Business Insider.

Department store Macy’s, grocery chain Kroger, and a number of niche retailers have announced multiyear closure plans. Macy’s said in January 2025 that it intends to close 150 locations through 2026, reducing its store count to around 350. In 2025, the company closed at least 66 stores, reallocating resources toward its online operations.

Children’s apparel retailer Carter’s has announced plans to shutter 150 stores over the next three years as leases expire, including roughly 100 by the end of 2026. Kroger, meanwhile, is targeting 60 “unprofitable” supermarkets for closure over the next 18 months. The chain operated 2,731 stores across 35 states and Washington, DC, as of February 2025.

Other brands are also downsizing. Newell Brands plans to close 20 Yankee Candle stores in the US and Canada beginning in January 2026, alongside a workforce reduction of over 900 employees. CEO Chris Peterson described the move as “a disciplined step to enhance efficiency, sharpen our strategic focus, and deliver stronger, more consistent performance.”

Luxury discount retailer Saks Off 5th plans to close select stores early in 2026, including nine locations, while outdoor retailer REI will shutter three stores starting in New Jersey, followed by New York City and Boston later in the year. Both companies said the closures are part of broader strategies to align with evolving customer needs.

Business Insider data shows that around 4,100 US retail locations closed in 2025, compared with an earlier forecast of approximately 15,000, while roughly 270 planned closures have been identified for 2026. Analysts say the trend reflects a structural shift in US retail, as chains concentrate on profitable locations and invest heavily in e-commerce while maintaining a leaner physical footprint.