The beginning of 2026 is shaping up to be a turning point for brick-and-mortar retail in the United States. Several household-name retailers have confirmed plans to shut down hundreds of physical locations nationwide, signaling a major restructuring across the industry.
Among the most prominent are Macy’s and Kroger, two companies that collectively serve millions of customers each week. After a challenging 2025 marked by inflation, declining foot traffic, and changing consumer habits, executives say these closures are necessary to remain competitive and financially stable.
Overview: Retail Store Closures Planned for 2026
| Retailer | Estimated Closures | Timeline | Key Reason |
|---|---|---|---|
| Macy’s | 100+ stores | By end of 2026 | Focus on stronger locations |
| Kroger | ~60 stores | Next 18 months | Eliminate underperforming stores |
| Saks Off 5th | Dozens (select states) | Early 2026 | Business optimization |
| REI | 3 stores | Throughout 2026 | High operating costs |
Why Are Major Retailers Closing Stores in 2026?
The closures announced for 2026 are not isolated events. Instead, they reflect broad structural changes affecting nearly every sector of retail.
Key drivers include:
- Lower in-store foot traffic as consumers continue shifting to online shopping
- Persistent inflation, raising rent, logistics, and labor costs
- Post-pandemic habit changes, with shoppers favoring convenience and price comparison
- Oversized store networks, built for a different era of consumer behavior
A retail economist explained, “The retail model that worked in the 1990s and early 2000s simply doesn’t match how Americans shop today. Store closures are part of a long-overdue recalibration.”
Macy’s Store Closures: A ‘Bold New Chapter’ Strategy
What Macy’s Announced?
In February 2024, Macy’s unveiled its long-term restructuring plan, branded as “Bold New Chapter.” The strategy included closing over 100 underperforming stores while reinvesting in higher-performing locations and digital channels.
By early 2025, the company had already shuttered 66 locations, including notable stores such as the Macy’s Furniture Gallery on Staten Island, New York.
What’s Coming in 2026?
According to company statements, Macy’s expects to complete at least 100 total closures by the end of 2026. Leadership says the goal is not to retreat from physical retail but to concentrate on stores where customers are still engaging.
A Macy’s executive told investors, “We are focusing our capital on stores that resonate with customers and deliver consistent returns, while upgrading the overall shopping experience.”
Kroger Store Closures: Streamlining the Largest Grocery Chain
Kroger’s Plan
Kroger, the largest grocery chain in the U.S., announced plans to close around 60 underperforming supermarkets over the next 18 months, placing many closures squarely in 2026.
Kroger currently operates 2,731 stores in 35 states and Washington, D.C., under banners such as Ralphs, King Soopers, Fred Meyer, and Smith’s.
Employee Impact
While Kroger has not released a list of specific stores, it emphasized that affected employees would be offered transfers to nearby locations whenever possible.
A company spokesperson stated, “These decisions are about strengthening our overall network while continuing to invest in associates and customer experience.”
However, the closures arrive amid labor concerns raised by the United Food and Commercial Workers, which has highlighted staffing shortages and workplace pressures in grocery stores nationwide.
Other Retailers Closing Stores in 2026
Saks Off 5th
Saks Off 5th, the off-price division of Saks Fifth Avenue, confirmed plans to close multiple locations in early 2026.
States expected to be affected include:
- Texas
- Illinois
- New York
- New Jersey
- Pennsylvania
- Washington, D.C.
- Connecticut
A retail strategy consultant noted, “Discount chains are not immune to the same pressures affecting traditional department stores, especially when foot traffic softens.”
REI: Select Urban Closures
Outdoor cooperative REI confirmed it will close three stores in 2026, beginning with a location in Paramus, New Jersey, followed later by closures in:
- SoHo, New York City
- Boston, Massachusetts
REI cited high operating costs and evolving shopping patterns as primary reasons for the decision.
How Store Closures Could Affect Shoppers?
For customers, the impact of these closures will vary by region. Some communities may see fewer in-person shopping options, while others may experience little change.
Potential effects include:
- Longer travel distances to physical stores
- Greater reliance on online ordering and delivery
- Changes in promotions or inventory availability
A consumer behavior expert explained, “Retailers are betting that convenience and digital access matter more than proximity for most shoppers now.”
Retail Industry Context: A Reset, Not a Collapse
Despite alarming headlines, analysts stress that these closures do not signal the end of major retail brands. Instead, they represent a shift toward leaner, more profitable operations.
An industry analyst said, “This is a correction phase. Retailers that adapt now are more likely to survive the next decade.”
Why 2026 Is a Pivotal Year for Retail?
The decisions announced for 2026 reflect lessons learned during a volatile economic period. Retailers are choosing to:
- Reduce excess real estate
- Invest in technology and logistics
- Improve profitability per store rather than total store count
This approach mirrors trends already seen in banking, dining, and entertainment sectors.
Final Thought
The closure of hundreds of stores by Macy’s, Kroger, Saks Off 5th, and REI underscores how dramatically U.S. retail is changing. Inflation, online competition, and shifting consumer preferences have forced even the strongest brands to make difficult adjustments.
While fewer stores may be inconvenient for some shoppers, retailers argue that these changes will lead to better experiences, stronger service, and long-term stability.
As one retail analyst summed it up, “Retail isn’t dying it’s downsizing to survive.”
FAQs
Why are Macy’s and Kroger closing stores in 2026?
They are reducing underperforming locations due to lower foot traffic, inflation, and changing shopping habits.
How many Macy’s stores will close by 2026?
Macy’s plans to close at least 100 stores by the end of 2026.
Is Kroger closing stores nationwide?
Yes, Kroger expects closures across multiple states but has not released a full list.
Will employees lose their jobs due to these closures?
Kroger has said affected workers will be offered positions at other locations when possible.
Are these closures permanent?
Yes, the announced closures are permanent as part of long-term restructuring strategies.
