Retail store closures have surged across the US — experts warn things are about to get worse
The United States is in the grip of a retail apocalypse, as popular chains are being forced to reduce their nationwide footprint just to stay profitable, while consumers struggle with rising prices. The past year was already a nightmare for the retail sector, with tens of thousands of store closures across the country. Now, experts are predicting an even rockier 2026, as rising costs, shifting consumer habits, and economic uncertainty continue to put pressure on brick-and-mortar retailers.
According to a report by The Mirror, experts have warned that the 2025 closures were just the beginning, and we are in for a rough ride this year. They even have hard facts to back this warning up, as the first two weeks of January saw several major retailers and powerhouse brands shutting down or filing for bankruptcy. It was just recently that Macy’s decided to reduce their countrywide footprint, and luxury retailer Saks Global filed for bankruptcy.
While the inflation, which held steady throughout December, is a major factor behind the retail nightmare, Ward Kampf, the president of Northwood Retail, explained it in simple terms to the Daily Mail, as he said, “America has been over-retailed.” He then elaborated on his point, noting, “We built and built, focusing on growth, expansion, and development, and now the focus is on profitability, performance, and margins.” Unfortunately, adding to this is America’s shifting shopping landscape, as people now prefer warehouse companies like Costco and Sam’s Club over departmental stores.
Other experts are also of the same opinion, as Neil Saunders, the managing director at GlobalData Retail, says top companies will be forced to reduce their country-wide footprint well into 2026. He insists this is a necessary step for businesses to stay relevant in the face of rising costs, before adding, "Part of this involves closing underperforming stores that are not producing sales growth or contributing to profits." Nevertheless, Saunders believes that shuttering underperforming locations is not a bad thing as it can “keep store portfolios lean.”
The retail landscape started heading towards disaster during the COVID-19 pandemic when American consumers began prioritizing online shopping over visiting brick-and-mortar retailers in person. This, coupled with shoppers being spoiled for choice and markets becoming increasingly overcompetitive, has led to a slowdown in growth across nearly every sector. Saunders points out that most companies are using store closures to address this imbalance.
Data from Coresight Research claims that over 8200 retail stores were shuttered across the US in 2025. Now, the same organization has revealed that around 566 stores already have plans to shut down in 2026. Unsurprisingly, top brands like Walgreens, 7-Eleven, and Dollar General are a part of this wave.
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