These department store chains plan widespread closures through 2026

Department store chains enter a painful reset phase

Across the US, 2025 is shaping up to be a challenging year for big-box and department store retailers. Chains that once anchored every mall in town are now closing individual locations, entire banners, or even winding down completely.

From fabric stores to fashion giants, companies are racing to shrink their footprints, cut debt, and survive a consumer landscape that bears little resemblance to what it was a decade ago.

Store closures surge even as mall foot traffic rebounds

It is tempting to blame everything on online shopping, but the story is more complicated. Data shows mall foot traffic has actually rebounded heading into the holiday season.

People are walking the corridors again, but they are often browsing more than buying, or hunting for deals instead of complete outfits at full prices. That leaves many midtier chains struggling to justify large stores and long leases.

Macy’s shrinks to save its strongest locations

Macy’s is in the midst of a sweeping “Bold New Chapter” plan that leans into fewer but stronger stores. The chain is closing sixty-six locations in 2025 and about one hundred fifty total through 2026, while investing in roughly three hundred fifty go-forward sites.

For shoppers, this means that some beloved mall flagships will go dark, even as remaining locations receive upgrades and more curated assortments.

JCPenney continues a long retreat from many malls

Once the dependable middle ground for school clothes and home basics, JCPenney is closing another set of underperforming stores as leases expire. Eight locations are set to disappear in 2025, ranging from Annapolis to Denver.

Each closure leaves another dark anchor box for landlords to fill and, in smaller markets, removes one of the last complete line clothing and home departments within a reasonable driving distance.

Kohl’s trims stores and a major fulfillment center

Kohl’s is also tightening its footprint. The retailer closed its long-standing e-commerce fulfillment center in San Bernardino, California, along with twenty-seven stores across multiple states.

Executives frame the move as a tough but necessary step to support long-term growth. The goal is to lean into stronger locations, partnerships, and digital sales, even if that means fewer physical doors in the near term.

Joann exits the stage after eight decades

In one of the most dramatic moves of the year, Joann is closing all 800 of its fabric and craft stores across 49 states after 80 years in business.

Unable to secure a buyer willing to keep the chain operating, the company sold its remaining assets to a financial firm. For many communities, Joann’s exit leaves a big hole in the creative and hobby ecosystem.

Liberated Brands pulls the plug on surf and skate stores

Liberated Brands, parent company of Volcom, Billabong, Quiksilver, Roxy, RVCA, Spyder, and Honu, filed for Chapter eleven and announced the closure of all its US stores.

After a rapid expansion post-pandemic, rising costs, tariffs, and debt caught up with them. Authentic Brands Group has pulled key licenses, and now those surf and skate labels will primarily live on through other retailers rather than their own branded shops.

Claire’s and teen-focused chains step back from the mall

Tween favorite Claire’s has listed nearly three hundred stores for closure across North America as part of a restructuring, including Claire’s and Icing locations.

Combined with brands like Forever Twenty-One and Torrid, which are also trimming or exiting stores, it means far fewer accessory and fast fashion options in traditional mall corridors.

Outdoor and specialty retailers also rethink store counts

It is not just fashion chains feeling the squeeze. REI plans to close high-profile stores in New York, Boston, and Paramus in 2026, while Vermont-based Orvis is shutting down dozens of full-price and outlet locations to refocus on its core roots in fishing and hunting.

These moves demonstrate that even niche, experience-driven retailers are recalibrating their strategies to where physical stores truly add value.

Dillard’s and Neiman Marcus prune select flagship locations

Regional department store Dillard’s has shuttered or announced closures for several stores, including a Plano, Texas site by early 2026, despite reporting modest sales growth.

Neiman Marcus is closing its Plano store in The Shops at Willow Bend as the property is redeveloped. Both chains are focusing on higher-performing locations, while landlords reassess large, traditional department store spaces.

Pharmacy and discount giants reshape everyday shopping routes

Parallel to classic department store pullbacks, chains such as Walgreens, CVS, Dollar General, Family Dollar, and Rite Aid are closing hundreds of locations.

Many of these sites are located in the same shopping centers as apparel and home stores, resulting in a stark combined effect.

Entire corners that once housed a pharmacy, a dollar store, and a major department store now risk becoming patchworks of empty windows and liquidation banners.

Party City and other specialists disappear entirely

Some specialty chains are not just slimming down; they are vanishing. Party City is closing its roughly seven hundred stores after years of inflation and shifting spending patterns.

At Home has shut dozens of locations while restructuring its heavy debt load. As these brands depart, shoppers lose one-stop destinations for decorations and home goods, and landlords scramble to reimagine oversized boxes built for a different retail era.

And if this has you thinking about where shoppers are turning next, you might enjoy exploring some of Scottsdale’s local gourmet shops that bring home an authentic taste of the city.

What this wave of closures means for shoppers and cities

Taken together, these closures will reshape how and where Americans shop through 2026 and beyond. Expect more empty anchor spaces, more mixed-use redevelopments, and a greater reliance on online ordering or smaller-format stores.

For some towns, losing a department store means losing jobs, tax revenue, and a social gathering spot. For others, it is the first step toward entertainment venues, housing, or entirely new uses for old retail footprints.

And if you’re curious to see the brighter side of retail spaces, you might enjoy exploring some of America’s most stunning malls, where window shopping still feels like a luxury escape.

What do you think about the closure of these department stores across the US? Please share your thoughts and drop a comment.

Read More From This Brand:

• Best September antique shopping towns
• Love shopping at Nordstrom? Thank Alaska’s Klondike gold rush
• America’s best small towns for antique shopping and summer charm

This slideshow was made with AI assistance and human editing.