Macy's and Carter's to Shutter 300 Combined Locations by 2026
The U.S. retail landscape is bracing for continued consolidation as major chains have announced significant store closures extending through 2026. Department store giant Macy’s plans to close 150 of its underperforming locations, a move designed to allow the company to reinvest in its most profitable stores and enhance its online experience. Similarly, Carter’s, a leading retailer of children's apparel, will close 150 stores across North America over the next three years. These two retailers alone account for 300 planned closures, signaling a decisive shift away from extensive physical footprints.
Grocers and Specialty Retailers Cut 80+ Storefronts
The strategic downsizing is not confined to apparel and department stores. Supermarket chain Kroger announced plans to shutter 60 stores it deems “unprofitable” across the United States over an 18-month period beginning in June 2025. In the specialty retail sector, Newell Brands will close 20 Yankee Candle stores in the U.S. and Canada starting in January 2026. The trend also includes smaller-scale closures from retailers like Saks Off 5th and REI, which plans to close three locations in the first quarter of 2026, underscoring the broad-based nature of this operational pivot.
This wave of nearly 300 identified store closures for 2026 continues a multi-year trend of retail retrenchment. The moves are a direct response to fundamental changes in consumer behavior, primarily the sustained migration to e-commerce, a trend that was accelerated by the global pandemic. By culling unprofitable locations, companies aim to reallocate capital and resources to strengthen their digital platforms and improve logistics. This strategy follows a difficult period for brick-and-mortar, with retail consulting firm Coresight Research having previously forecasted approximately 15,000 store shutdowns during 2025, indicating that the industry's structural transformation is far from over.
Edgen Stock·Dec 26 2025, 14:20