Retail and Restaurant Closures: A Look Ahead to 2026

As 2026 approaches, several major retailers and restaurants have announced plans to close locations across the United States. This trend follows a challenging year for traditional brick-and-mortar businesses, with many struggling to adapt to changing consumer habits and economic pressures.

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Carter’s, a retailer specializing in baby and children’s clothing, plans to close approximately 150 stores over the next three years, with about 100 closures expected in 2025 and 2026. The company cited significant tariffs on imported products 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. Meanwhile, grocery giant Kroger has announced an 18-month plan to cut around 60 of its more than 2,700 stores nationwide.

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Macy’s is in the process of closing 150 stores by the end of 2026 as part of its “Bold New Chapter” strategy, which focuses on closing underperforming locations. Fast casual chain Red Robin is considering closing up to 70 restaurants, though this number has been revised to 50 due to improved sales.

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Starbucks is set to close approximately 400 locations, primarily in urban areas, as part of a $1 billion restructuring plan. This decision comes amid increased competition from niche coffee shops and a shift in consumer behavior due to remote work. Wendy’s interim CEO Ken Cook indicated that the fast-food chain may close between 150 and 300 locations by the end of 2026, aiming to address underperforming restaurants.

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Walgreens is also in the midst of closing about 1,200 locations nationwide, citing theft and a shift toward online shopping as key factors. The pharmacy chain has been closing stores since October 2024, focusing on those with expiring leases or poor performance.

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The closures reflect broader economic challenges, including high inflation and changing consumer preferences. Many retailers have struggled with rising debt and competition from online giants like Amazon. The trend of downsizing is not limited to large chains; numerous local establishments have also faced closures, particularly in urban areas where foot traffic has diminished.

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Critics argue that these closures highlight a systemic issue within the retail and restaurant sectors, where businesses have failed to adapt to evolving consumer needs. Some analysts suggest that the focus on closing underperforming locations may not be sufficient to address the underlying challenges facing these companies.

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As these closures unfold, companies are expected to share more details about their strategies for recovery and adaptation. The upcoming investor day for Starbucks, scheduled for late January, will likely provide insights into the company's plans moving forward.

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• “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 Press Release

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• “The goal is to address and fix those restaurants.” — Ken Cook, Interim CEO of Wendy’s

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• “As markets and customer needs evolve, we must adapt to position the co-op for long-term success.” — REI Spokesperson

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The landscape of retail and dining continues to shift, with closures marking a significant transition as companies strive to navigate the complexities of modern consumer behavior.

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