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Department store closures: 12 chains shutting locations through 2026 and why
Department stores once anchored shopping routines. They held the perfume counter, the gift registry, the school uniform run, and the last-minute birthday stop. That role is now changing. Across the US and Canada, large chains are shrinking their physical footprints between 2024 and 2026.
Some are shutting down as leases expire. Others are executing formal, multi-year downsizing plans. What remains is uneven. Flagships survive, smaller markets lose anchors as malls redraw their maps. Here is where the biggest shifts are happening.
Macy's is in the middle of a planned reduction of roughly 150 underperforming stores through 2026, with dozens already confirmed. The company is shifting focus to fewer, higher-performing flagships and digital sales, Modern Teen reported.
JCPenney continues to exit weaker malls as leases roll off, especially in smaller or slower markets. Closures tend to follow long sales declines rather than sudden decisions.
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Sears has nearly disappeared as a national presence. Only a small number of locations remain, many operating with reduced floors or limited inventory before eventual exit.
Kohl's is closing selected underperforming stores while testing partnerships, new layouts, and smaller formats. The strategy is positioned as optimization rather than retreat.
Belk is combining targeted closures with smaller new concepts, particularly across the southeastern US, shifting away from oversized legacy locations.
Nordstrom has been trimming selected mall and downtown stores while consolidating around flagships, outlets, and online sales.
Neiman Marcus has also expanded its focus on online sales and direct client relationships, shifting away from the idea that every market needs a full-scale physical store.
Rather than exiting physical retail, Saks Fifth Avenue appears to be narrowing its footprint - fewer stores, but in places where the brand still draws consistent demand.
Saks Off Fifth is narrowing its footprint to higher-performing outlet regions as discount luxury becomes more competitive online.
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Bloomingdale's is shifting growth into smaller formats and e-commerce while consolidating older full-line stores.
Dillard's remains profitable but is affected by mall redevelopment trends that leave some anchor spaces obsolete.
Hudson's Bay represents the sharpest shift. The company fully exited Canadian department store operations by mid-2025 following restructuring and liquidation, ending the format entirely rather than shrinking it.
Closures are not evenly spread. Large cities keep flagships while smaller markets lose access. For landlords, empty anchors mean redevelopment or demolition. For shoppers, it means longer drives, fewer fitting rooms, and heavier reliance on online buying.
Source: HindustanTimes
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