The new year has arrived, and in an effort to reform their finances, some retail businesses are saying goodbye to select locations, citing low performance and, in some cases, tariffs.
Retailers such as Carter’s come to mind, with the children’s clothing store noting in October that the company is closing 150 stores over the next three years.
Carter’s announced plans to close “low-margin” stores in its fiscal third-quarter report during an Oct. 27 call. According to the company, around 100 of the stores will be closed by 2026.
During Carter’s October call, the company said tariffs were one of the primary reasons for the closures and that it would monitor tariff levels.
Children’s clothing is displayed at a Carter’s Babies and Kids store on Nov. 17, 2025 in Colma, California.
Last year, President Donald Trump announced 10% tariffs on imports from all countries and additional duties on 60 countries that he deemed the largest contributors to the U.S. trade deficit, leading to increased costs for American consumers.
On the flip side, businesses such as Red Robin, which last spring considered closing 70 underperforming locations, was able to remove some restaurants from its list of potential closures due to better performance. On Jan. 7, the company said it had “strong financial results” in its third quarter of 2025, allowing it to close fewer locations.
Here’s a list of businesses downsizing in 2026 and the reasons for their closures.
Among grocery and convenience stores with locations closing in 2026 are Kroger, Walgreens and Big Lots.
In June, Kroger confirmed that it planned to close 60 locations across the country over the next 18 months. The grocer said in its first quarter 2025 sales report that closing the stores would give the business a “modest financial benefit.”
At the time, the company declined to provide a list of store closures, but media reports show closures in Illinois, Kentucky and Texas.
When USA TODAY contacted Kroger on Jan. 7, the company referred the newspaper to previous comments. The company said in September that it was on track to increase store openings by 30%. In December, Kroger said it would soon break ground on 14 new stores.
Walgreens pharmacy did not immediately respond to requests for comment on Jan. 7, but said in October 2024 that it planned to close about 1,200 underperforming stores across the U.S. over a three-year period due to declining profits. According to the company, the declining profits stemmed from low drug reimbursement rates and slow retail sales.
A walgreens storefront.
Big Lots filed for Chapter 11 bankruptcy in September 2024. Then-President and Chief Executive Officer Bruce Thorn said in a press release at the time that the company wanted to “move forward with a more focused footprint.”
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About a month later in October, Big Lots announced plans to close more than 340 stores. The company did not immediately respond to requests for comment on Jan. 7.
Macy’s announced in February 2024 plans to close 150 underproductive stores over a three-year period as part of the department store’s “Bold New Chapter” strategy.
The strategy is supposed to help the company return “to sustainable, profitable sales growth,” the company said in an updated press release in January 2025.
The company said it also planned to invest in 350 other locations through fiscal year 2026, and confirmed 66 of the 150 closures moving forward. Closures include stores in states such as California, Georgia, New York and Texas.
By March 2025, stores had already begun closing in downtown Brooklyn and Long Island.
Macy’s told USA TODAY on Jan. 7 that there are no updates to the company’s closure plans.
Signs are posted on the front of a JCPenney store that was set to close on May 22, 2025 in San Francisco, California.
Other department stores closing locations in 2026 include:
JCPenney (Feb. 22, 2026) – Closing the Pleasanton, California store, per news station KRON-TV. JCPenney declined to comment on Jan. 7, but told KRON-TV the company was “unable to continue our current lease terms for this store location and have been unable to find another suitable location in the market.”
Saks Off 5th (Beginning in January 2026) – Closing nine stores in Austin; Chicago; East Hanover, New Jersey; Niagara Falls, New York; Pittsburgh North (McKnight Road); Franklin Mall (formerly Philadelphia Mills) in Philadelphia; Plymouth Meeting, Pennsylvania; Washington, DC; and West Hartford, Connecticut. Saks Off 5th previously told USA TODAY that the closures are part of the company’s plan to “optimize” its store presence.
Yankee Candle (2026) – Newell Brands, owner of Yankee Candle, confirmed to USA TODAY on Jan. 7 that the company still plans to close 20 Yankee Candle stores in the U.S and Canada in 2026, although the company did not specify dates. The company said the closures are part of its global productivity plan, noting that the closures are just 1% of the brand’s sales. Yankee Candle said it is “focusing resources on our most productive channels and store locations to strengthen performance.”
Some specialty stores have announced closures for 2026 as well, including outdoor and sporting goods store Orvis. Citing tariffs, Orvis said in October that the company will close 31 stores by early 2026.
REI also said in October that the store plans to close three locations in 2026. The company previously said in a statement to USA TODAY that “as markets and customer needs evolve, we must adapt to position the co-op for long-term success.”
REI stores set for closure in 2026 include:
Paramus, New Jersey – Closing in the first three months of 2026.
Boston – Closing in late 2026.
New York City – The REI SoHo flagship store will be closing in late 2026.
Shoe retailer Foot Locker, owned by Dick’s Sporting Goods, will be closing some “underperforming” stores, Chief Executive Officer Ed Stack said during the company’s quarter three earnings call on Nov. 25.
“Our intent is to get the vast majority of the inventory charges behind us by the end of the year, so we can start 2026 fresh and position Foot Locker for an inflection point during the back-to-school season in 2026,” Stack said during the call.
When asked for a timeline and closing store locations on Jan. 7, Dick’s Sporting Goods referred USA TODAY to the November earnings call.
A person walks past a Foot Locker store.
Video game retailer GameStop is also set to close hundreds of stores this month, including stores in Alabama, according to the Montgomery Advertiser, part of the USA TODAY Network. GameStop did not immediately respond to USA TODAY requests for comment on Jan. 7.
Contributing: Gabe Hauari, Jennifer Lindahl, Jonathan Limehouse, Mary Walrath-Holdridge, Michael Collins, Michelle Del Rey, USA TODAY
Saleen Martin is a reporter on USA TODAY’s NOW team. She is from Norfolk, Virginia – the 757. Email her at sdmartin@usatoday.com.
This article originally appeared on USA TODAY: Some businesses are closing stores in 2026. See which ones.
