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Retail store closures are a major reality in 2026, even as the economy seems to be improving. According to Coresight Research, approximately 7,900 U.S. retail locations are closing this year. Some are due to economic challenges, while others cite the need to adapt new strategies.
For people looking to get ahead financially, being informed about stores closing near you can help you avoid last-minute shopping headaches and ensures you can redeem gift cards and loyalty rewards before your local location closes. To that end, here are the chains leading the 2026 store closure pack and what it means for you.
GameStop
GameStop continues to close brick-and-mortar locations. The reason? Folks are buying digital downloads instead of physical games, paralleling the plight of the music industry.
The retailer says approximately 400 more stores are going to turn off the lights in 2026 after shuttering a whopping 590 locations in 2024. This reduction could slash its U.S. store count by as much as 30%, leaving many staffers without their jobs.
Francesca's
Francesca's is closing all of its U.S. locations (about 450 total). The brand blames its lenders for failing to come through with promised funding, leaving them unable to pay suppliers.
The move comes after long periods of struggle for the women's fashion chain, which reportedly let go of its workforce without notice. Francesca's filed for bankruptcy back in 2020, and bankruptcy protection in 2026.
Walgreens
So why is Walgreens closing stores? The chain is in the middle of a major footprint reduction that will close 1,200 stores over three years, with many happening in 2026. Simply put, many locations aren't profitable.
In what's been dubbed the "pharmacy apocalypse," retailers like Walgreens are losing money due to shrinking insurance reimbursements, increased online shopping, and rising supply costs.
Macy's
As part of its "Bold New Chapter" turnaround strategy implemented in 2024, Macy's is closing 150 "underproductive" stores through 2026. Layoffs have numbered into the thousands.
Numbers in the midrange sales demographic appear to be suffering, while its luxury arm, Bloomingdale's, is thriving. If your local Macy's debuts a clearance sale, it may be a sign that it's in its last few weeks of operations.
Kroger
Kroger is in the midst of shuttering approximately 60 underperforming locations by the end of 2026. The grocery giant is projecting financial stability, but you may see closures in markets where there are multiple competing supermarkets.
In contrast, discount stores like Aldi, Walmart, and Costco are thriving as shoppers seek cheaper grocery options en masse.
Carter's
Children's clothing retailer Carter's is closing roughly 150 stores as leases expire, which is significantly more than the 100 locations they'd previously announced.
The children's apparel store is also cutting 300 jobs. The reasons for the cuts and closures, according to store executives, are profitability pressures like tariffs and higher supply costs. Decreased mall visits by consumers are likely playing a role as well.
Saks Off 5th
Saks Off 5th closed 57 locations in early 2026 after its parent company entered Chapter 11 bankruptcy proceedings. Web sales were suspended, while a handful of brick and mortar locations remain open for business.
Saks is focusing its attention on its luxury brands, Bergdorf Goodman, Saks Fifth Avenue, and Neiman Marcus. If you have store-specific gift cards, consult your local outlet to see what's still being honored.
Joann Fabric
One of the biggest retail casualties worth mentioning, though it occurred last year, is Joann Fabric. After years of financial struggles and bankruptcy proceedings, the retailer shut down its remaining 800 locations.
Competition from rivals like Hobby Lobby, as well as internet sales, put a dent in Joann's profits, exacerbating the significant expense of carrying the large and varied inventory its customers demanded. Their website now directs customers to online shops like Amazon.
Eddie Bauer
Eddie Bauer is exiting the brick-and-mortar landscape via bankruptcy, with all roughly 174 U.S. and Canadian stores slated to close.
Issues include everything from increased costs, retail competition, and the rise of online shopping preferences. The corporate headquarters in Seattle was also shuttered, laying off the staff located there. Fans of the brand are still able to purchase apparel online via the store website.
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7-Eleven
7-Eleven plans to close 645 locations in 2026 after the convenience store juggernaut closed more than 600 stores in 2024 and 2025 combined.
Underperforming locations are going to turn off the lights to make way for remodeled, revamped locations that keep up with the competition. That means more prepared foods and grocery store items are likely going to be available for customers.
Bottom line
Store closures don't mean that a company is imploding. In many cases, retailers are closing locations with lagging sales while pouring resources into profitable operations. Still, the scale of recent closures means brick-and-mortar shops are disappearing, along with jobs.
Taking a few minutes to stay informed could help you avoid wasting money, making it easier to expend gift cards and reward points before yet another local store disappears.
FAQs
Why are so many retail stores closing in 2026?
Several factors are pushing retailers to close locations in 2026, including rising operating costs, lower foot traffic at malls and strip centers, and the continued growth of online shopping. For pharmacy chains like Walgreens, falling insurance reimbursement rates have made many locations unprofitable. Tariffs have also increased costs for apparel retailers, while some chains are simply right-sizing after years of overexpansion.
What should I do if a store near me is closing?
If a store near you is closing, your first priority should be to use up any store-specific gift cards or loyalty rewards before the location shuts down. Some retailers honor gift cards online or at other locations, but that's not guaranteed once a chain enters bankruptcy or liquidation. It's also worth checking whether prescription records or layaway items need to be transferred before the doors close.
What happens to gift cards when a store permanently closes?
When a retailer closes permanently, gift card redemption depends on the circumstances. If the company is still operating other locations or an online store, the cards may remain valid there. If the company is liquidating entirely, gift cards typically become worthless once the business shuts down. Using any store-specific gift cards as soon as you hear closure news is the safest approach.
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