Full Breakdown
Retail and Restaurant Closures: A Look Ahead to 2026
12/25/2025, 12:34:52 AM
Overview of Upcoming Closures
As 2026 approaches, numerous retailers and restaurants are planning significant closures across the United States. Major chains such as Carter’s, Dick’s Sporting Goods, Kroger, Macy’s, and Walgreens have announced plans to shutter locations, reflecting ongoing challenges in the retail and dining sectors.
Key Retailer Announcements
Carter’s, a retailer specializing in baby and children’s clothing, is set to close approximately 150 stores over the next three years, with a significant number of closures occurring in 2025 and 2026. The company cited the impact of tariffs on imported goods as a contributing factor to its decision. Dick’s Sporting Goods, which acquired Foot Locker in 2025, will also close some of its shoe stores, although the exact number remains unspecified. Kroger has announced an 18-month plan to cut around 60 of its more than 2,700 stores nationwide.
Macy’s is in the process of closing 150 stores by the end of 2026 as part of its “Bold New Chapter” strategy, which aims to focus on more productive locations. Walgreens is executing a three-year plan to close about 1,200 locations, primarily targeting underperforming stores and those with expiring leases.
Restaurant Sector Challenges
The fast-food industry is also experiencing significant changes. Wendy’s is considering closing between 150 and 300 locations by the end of 2026, as interim CEO Ken Cook noted that some restaurants do not meet brand standards. Similarly, Jack in the Box plans to close 80 to 120 underperforming locations by the end of 2025, with additional closures expected in 2026. This move is part of a broader strategy to address declining sales and heavy debt.
In the casual dining sector, Red Robin has reduced its list of potential closures from 70 to 50, with plans to close these locations by 2030. REI will close three stores, including its flagship location in New York, citing the need to adapt to evolving market conditions.
Local Impact and Community Responses
In San Diego, several long-standing restaurants have closed due to economic pressures, including Las Cuatro Milpas, which operated for 92 years, and Matteo, which will close at the end of December 2025. The owner of Mmm…Cakes in Chula Vista attributed its closure to inflation and difficulties stemming from the COVID-19 pandemic.
Conversely, Montgomery County has seen a net increase in restaurant openings, with 667 new establishments compared to 646 closures in 2024. This suggests a mixed landscape where some businesses are thriving despite the challenges faced by others.
Official Statements & Responses
Carter’s stated, “These additional tariffs have begun to add substantially to the approximately $110 million in duties on imported products paid by the Company in fiscal 2024.” Dick’s Sporting Goods emphasized the need to “clean out the garage” by closing underperforming stores. Wendy’s interim CEO noted the goal is to address restaurants that negatively impact franchisee performance.
Verbatim Quotes
- “These additional tariffs have begun to add substantially to the approximately $110 million in duties on imported products paid by the Company in fiscal 2024.” — Carter’s
- “When we look at the system today, we have some restaurants that do not elevate the brand and are a drag from a franchisee financial performance perspective,” — Ken Cook, Wendy’s Interim CEO
- “As markets and customer needs evolve, we must adapt to position the co-op for long-term success.” — REI Spokesperson
Conclusion
The upcoming closures in 2026 reflect broader trends in the retail and restaurant industries, driven by economic pressures, changing consumer behavior, and strategic business decisions. As companies navigate these challenges, the landscape will continue to evolve, impacting both established and emerging businesses.
