The retail landscape is undergoing a significant transformation, with a wave of closures and downsizing affecting various sectors. From baby clothes to groceries to fast food, several national chains have announced plans to reduce their operations in 2026. But here's where it gets controversial: while some closures are due to economic factors like tariffs, others are driven by strategic decisions to focus on 'go-forward' locations. This shift is reshaping the retail industry, leaving many wondering about the future of brick-and-mortar stores. Let's take a closer look at some of the closures and downsizing plans announced so far, and explore the factors driving these changes.
Carter's: Baby and Children's Clothing Retailer
Carter's, a well-known seller of baby and children's clothes, has shared plans to shutter approximately 150 stores over the next three years. About 100 of these stores are expected to close in 2025 and 2026, with the remaining 50 phasing out by 2028. The company cited tariffs as a significant impact on their business operations, stating that the additional tariffs have added substantially to the duties on imported products. As of December 2025, Carter's had 776 U.S. locations listed on its site.
Foot Locker: Shoe Retailer
Dick's Sporting Goods, which acquired Foot Locker in 2025, has announced plans to close some of the shoe stores in 2026. Ed Stack, executive chairman at Dick's, stated that the company would be 'taking decisive actions to 'clean out the garage' by clearing unproductive inventory, closing underperforming stores and laying the foundation for a fresh start in 2026.' Before the acquisition, Foot Locker had previously indicated that 400 stores would close between 2023 and 2026.
Kroger: Grocery Giant
Grocery giant Kroger has announced an 18-month plan to cut about 60 of its more than 2,700 stores. Interim CEO Ron Sargent didn't specify which locations would close, but said they were spread across the country. This move is part of a broader strategy to focus on 'go-forward' locations and improve overall performance.
Macy's: Department Store Chain
Macy's, a well-known department store chain, is in the process of closing 150 stores by the end of 2026. The move was announced in 2024 as part of its 'Bold New Chapter' strategy, focusing on closing 'underproductive' stores while investing in 'go-forward' locations. Macy's owns the Bloomingdale's and Bluemercury brands, which it described as 'outperformers' in 2024.
Red Robin: Fast Casual Burger Chain
Red Robin, a fast casual burger chain, is in the midst of major change. In March, it said it was considering closing 70 'underperforming restaurants.' However, months later, the company said improvements in sales allowed them to cut the list of pending closures down to 50. The closures are set to take place by 2030, according to Restaurant Business Magazine.
REI: Outdoor Retailer
REI, an outdoor retailer, has announced plans to close three locations, including its flagship store in New York, in 2026. The New York City and Boston stores will close in late 2026, but the location in Paramus, New Jersey, will close early in the year. The company cited evolving markets and customer needs as the reason for the closures.
Walgreens: Pharmacy Chain
Walgreens is in the process of closing about 1,200 locations around the U.S. as part of a three-year plan that kicked off in October 2024. The pharmacy chain and others like it have announced rolling closures over the past several years, citing issues with theft and a shift toward more online shopping. Walgreens didn't release a full list of all stores that would close, but said it would start with poor-performing stores with leases that are expiring, or where the company owns the property location.
Wendy's: Fast Food Chain
Wendy's interim CEO, Ken Cook, said in November the fast food chain was considering closing between 150 and 300 locations by the end of 2026. Cook stated that the goal is to address and fix 'underperforming restaurants' that are dragging down the brand's financial performance. In some cases, the company would be working with franchisees to improve operations, but in other cases, they planned to close restaurants.
These closures and downsizing plans are reshaping the retail industry, and it remains to be seen how many brick-and-mortar stores will survive in the coming years. As markets and customer needs evolve, retailers must adapt to position themselves for long-term success. The future of retail is uncertain, but one thing is clear: the days of traditional brick-and-mortar stores may be numbered for some chains.
