Retail Giants Announce Over 1,200 Store Closures by 2026

The retail landscape is undergoing a significant transformation as major retailers prepare to close over 1,200 stores by 2026. Prominent names like Macy’s and Saks Global are among those announcing closures, highlighting the ongoing challenges faced by the sector. Industry analysts indicate that the trend may continue as companies seek to streamline operations amid rising costs.

Over the past year, the retail sector has seen numerous businesses, including restaurants and clothing retailers, announce plans to shut down. According to retail expert Neil Saunders, this trend is expected to persist. In an interview with the Daily Mail, he emphasized, “Against the backdrop of rising costs, a lot of retailers are looking to become more efficient. Part of this involves closing underperforming stores that are not producing sales growth or contributing to profits.”

Major Retailers Confirm Closures

This year alone, Business Insider has reported more than 1,200 store closures affecting well-known brands such as Francesca’s and Wendy’s. For instance, Francesca’s, a popular clothing retailer, is set to close all of its approximately 400 locations in the United States. This decision follows the company’s previous bankruptcy filing in 2020, after which it was acquired by TerraMar Capital and Tiger Group. CFO Curt Kroll stated earlier this year that the closure process aims to “provide a structured path to pursue the best outcome for all stakeholders.”

Another significant closure is on the horizon for Wendy’s, with Interim CEO Ken Cook announcing plans to shutter underperforming restaurants. This will affect around 5% to 6% of its roughly 6,000 locations, translating to approximately 300 stores expected to close in the first half of 2026.

In a similar vein, Kroger announced in June 2025 its intention to close 60 “unprofitable” stores across the nation over the following 18 months. By September 2025, the company confirmed that it had begun the shutdown process.

Additional Retail Closures on the Horizon

Macy’s has also released plans to close 150 stores by 2026, focusing on retaining its top-performing locations while strengthening its online presence. Once the closures are finalized, only 350 stores will remain operational. The company had already closed at least 66 stores in 2025 as part of this strategy.

The baby clothing brand Carter’s is set to close around 150 stores over the next three years, with approximately 100 of those closures expected by the end of 2026. Furthermore, Pizza Hut, under the management of its parent company Yum! Brands, will be closing 250 underperforming locations in the United States during the first half of 2026.

Discount luxury retailer Saks Off 5th plans to shut down 57 stores early next year, while Yankee Candle has announced the closure of 20 locations across the U.S. and Canada within this year. Additionally, REI intends to close three stores, starting with a New Jersey outlet in the first quarter of 2026, followed by its locations in SoHo, New York City, and Boston later that year.

As these closures unfold, the retail industry faces a pivotal moment, highlighting the need for adaptation and efficiency in an ever-evolving market. The ongoing challenges in the sector will likely prompt further changes in the coming years, affecting both businesses and consumers alike.