What Happened to Mall Retailer Store Closures?
Mall retailer store closures represent an ongoing, multi-year trend driven by evolving consumer habits, the rise of e-commerce, and economic pressures. While some malls are adapting through mixed-use developments and experiential offerings, numerous prominent retailers continue to downsize their physical footprints, with significant closure announcements extending into 2026.
Quick Answer
Mall retailer store closures are a persistent phenomenon, characterized by major chains like Macy's, Nordstrom, and Rite Aid significantly reducing their physical store count, with some, like Bed Bath & Beyond and Francesca's, undergoing complete liquidation or second bankruptcies. This trend, accelerated by e-commerce growth and changing consumer preferences, continues into 2026 as retailers prioritize profitability per square foot, invest in omnichannel strategies, and malls transform into mixed-use destinations featuring entertainment and services.
📊Key Facts
📅Complete Timeline14 events
Bed Bath & Beyond Files for Chapter 11 Bankruptcy
Home furnishings giant Bed Bath & Beyond filed for Chapter 11 bankruptcy, announcing plans to liquidate all its remaining 360 Bed Bath & Beyond and 120 Buy Buy Baby stores.
Bed Bath & Beyond Completes Liquidation
Bed Bath & Beyond closed its last remaining stores, completing its liquidation process. The brand's intellectual property was later acquired by Overstock.com.
Macy's Announces 'Bold New Chapter' Turnaround Plan
Macy's unveiled a plan to close approximately 150 underperforming stores by the end of 2026, including 50 by the end of 2024, to focus on its strongest locations and invest in customer experience.
Rite Aid Files for Second Chapter 11 Bankruptcy
New Rite Aid, LLC filed for Chapter 11 bankruptcy for the second time in less than two years, signaling a shift towards complete liquidation rather than reorganization.
Nordstrom Announces Two Full-Line Store Closures
Nordstrom confirmed the closure of two full-line stores in Santa Monica, California, and St. Louis, Missouri, by the end of summer 2025, as it navigates retail shifts and a transition to private ownership.
Rite Aid Ceases Retail Operations
Rite Aid closed its final 89 stores, ending its 63-year operating history and completing its liquidation process following its second bankruptcy filing.
Multiple Retailers Announce 2026 Closures
Saks Off 5th announced closures of select stores, Carter's planned 100 closures by end of 2026, REI announced three closures, and Newell Brands (Yankee Candle parent) planned 20 closures for 2026.
Macy's Targets Additional 14 Stores for Closure
As part of its 'Bold New Chapter' strategy, Macy's announced another round of 14 store closures in 2026, primarily in the first fiscal quarter, continuing its effort to streamline operations.
Saks Global Files for Chapter 11 Bankruptcy
Saks Global, parent company of Saks Fifth Avenue and Saks Off 5th, filed for Chapter 11 bankruptcy protection, planning to close almost all Saks Off 5th locations.
Francesca's Files for Bankruptcy, All Stores to Close
Women's clothing boutique Francesca's filed for Chapter 11 bankruptcy protection and announced the closure of all 457 of its boutiques across 45 states.
Kroger and Wendy's Announce Significant 2026 Closures
Grocery chain Kroger announced plans to close about 60 underperforming supermarkets through 2026, while Wendy's plans to shut down around 300 of its restaurants.
Nordstrom Confirms Two More Full-Line Store Closures
Nordstrom confirmed it would close two full-line department stores in spring 2026, at the Galleria Dallas Mall in Texas and the Christiana Mall in Delaware, while continuing to expand its Rack stores.
Eddie Bauer Operator Files for Bankruptcy
Catalyst Brands, the company operating Eddie Bauer stores in the U.S., filed for bankruptcy citing declining sales, with all U.S. stores at risk of closure if a buyer isn't found.
Fossil Group Closes 7 Stores, Plans More in 2026
Fossil Group quietly closed 7 stores in Q1 2026 and expects to close up to 15 in total this year, reducing its global footprint to 185 locations by the end of 2026 as it optimizes its operating model.
🔍Deep Dive Analysis
The phenomenon of mall retailer store closures, often termed the 'retail apocalypse' in its earlier stages, has evolved into a 'retail reset' by 2026, reflecting a fundamental shift in the retail landscape rather than a complete collapse. This transformation is primarily driven by the relentless growth of e-commerce, changing consumer expectations for omnichannel experiences, and economic pressures such as inflation and tariffs.
Initially, the late 2010s saw a surge in bankruptcies and liquidations of long-standing mall anchors and specialty stores, unable to adapt to digital competition. The COVID-19 pandemic further accelerated these trends, forcing many retailers to re-evaluate their physical footprints and prioritize online sales channels. Companies like Bed Bath & Beyond, a once-ubiquitous home goods retailer, filed for Chapter 11 bankruptcy in April 2023 and subsequently liquidated all its remaining stores by July 2023, marking a significant turning point in the sector.
By 2025 and extending into 2026, the narrative shifted from mass closures to strategic repositioning. Major department stores, including Macy's, have continued to announce substantial store closures as part of broader turnaround plans. Macy's, for instance, confirmed plans to close approximately 150 underperforming stores by the end of 2026, following 66 closures in 2025 and 55 in 2024, to focus on stronger locations and invest in customer experience and luxury brands. Similarly, Nordstrom announced in March 2026 the closure of two full-line stores while expanding its off-price Nordstrom Rack business, highlighting a strategic pivot towards more profitable formats.
Other significant closures and bankruptcies in 2025-2026 include Rite Aid, which filed for Chapter 11 bankruptcy for the second time in May 2025, leading to a complete liquidation of its retail operations by October 2025. Saks Global, the parent company of Saks Fifth Avenue and Saks Off 5th, filed for Chapter 11 bankruptcy in January 2026, with plans to close nearly all Saks Off 5th locations. Children's apparel retailer Carter's plans to close 150 locations by the end of 2027, with 100 by the end of 2026, citing tariffs as a major factor. Francesca's, a women's clothing boutique, filed for Chapter 11 bankruptcy in February 2026 and is shuttering all 457 of its boutiques.
The consequences of these closures are multifaceted. While some communities face 'dead malls' and economic voids, many mall operators are actively transforming their properties into mixed-use developments, incorporating residential, office, healthcare, and entertainment components to create experiential destinations. Retailers, in turn, are focusing on operational agility, leveraging AI for personalization and supply chain optimization, and adopting smaller, more efficient store formats. The emphasis is now on 'profit per square foot' and creating engaging in-store experiences that complement robust online offerings.
What If...?
Explore alternate histories. What if Mall Retailer Store Closures made different choices?