Retail and Restaurant Closures in 2026: Major Chains Planning to Shut Locations

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Traditional brick-and-mortar retail keeps facing pressure, and 2026 is already shaping up to be another tough year for physical stores across the country.

After watching brands like Joann Fabrics, Party City and Rite Aid disappear in 2025, more national retailers and restaurants have now confirmed plans to shut down locations in the coming year. Some are downsizing, while others are pulling out of expensive or underperforming markets altogether.

Here is what we know so far about the companies planning store closures in 2026.

Carter’s

The popular baby and kids clothing retailer is shrinking its store footprint.
Carter’s announced it will close about 150 locations over three years, with many of those shutting down during 2025 and 2026.

Company leaders say new tariffs on imported products have added tens of millions of dollars in extra costs, forcing them to reduce physical locations. As of late 2025, Carter’s still operates more than 770 stores in the U.S.

Foot Locker

After being acquired by Dick’s Sporting Goods, Foot Locker is preparing for a major reset.

Dick’s leadership says they plan to close underperforming stores as part of a broader cleanup effort. While an exact number was not released, Foot Locker previously projected up to 400 closures between 2023 and 2026.

Kroger

The grocery giant is also trimming its footprint.

Kroger announced an 18-month plan to close about 60 stores across the country. Company leaders did not specify locations, but confirmed the closures are spread nationwide.

Macy’s

The department store chain continues its long-running downsizing.

Macy’s is in the process of closing 150 locations by the end of 2026 as part of its “Bold New Chapter” strategy. The company is shifting resources toward stores that perform better while reducing locations that struggle.

Macy’s will continue operating its Bloomingdale’s and Bluemercury brands, which have performed better than traditional Macy’s stores.

Red Robin

The burger chain is also shrinking.

Red Robin originally planned to close 70 locations, but later reduced the number to about 50 underperforming restaurants. Those closures will take place gradually through 2030, with some happening in 2026.

REI

Outdoor retailer REI confirmed it will close three major locations in 2026, including its flagship New York City store.

The company says shifting customer habits and market changes made the move necessary. Locations in Boston and New Jersey will also close.

Walgreens

Walgreens is in the middle of a three-year plan to close about 1,200 stores across the country.

The pharmacy chain says it is targeting poor-performing locations, expiring leases, and properties it owns outright as it adapts to more online shopping and rising retail theft.

Wendy’s

Fast-food giant Wendy’s plans to close between 150 and 300 restaurants by the end of 2026.

Company leaders say some locations hurt the brand and drag down franchise profitability. In some cases, Wendy’s will try to improve restaurants. In others, they will simply shut them down.

What This Means

Retail experts say these closures reflect a growing shift toward online shopping, higher operating costs, and changing consumer habits. While many locations will remain open, the companies listed above are making major adjustments to survive in a rapidly changing retail environment.