Department store closures: 12 chains shutting locations through 2026 and why

Department stores once anchored shopping routines. They held the perfume counter, the gift regry, 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. Macy’s is among the brands closing stores in 2026.(AP) 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. Large-scale closures underwayMacy’sMacy’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. JCPenneyJCPenney 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. Also read: Is Costco open on Chrmas Eve? L of grocery and retail stores available for last-minute needs SearsSears 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’sKohl’s is closing selected underperforming stores while testing partnerships, new layouts, and smaller formats. The strategy is positioned as optimization rather than retreat. BelkBelk is combining targeted closures with smaller new concepts, particularly across the southeastern US, shifting away from oversized legacy locations. Luxury and upper-tier contractionNordstromNordstrom has been trimming selected mall and downtown stores while consolidating around flagships, outlets, and online sales. Neiman MarcusNeiman 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. Saks Fifth AvenueRather than exiting physical retail, Saks Fifth Avenue appears to be narrowing its footprint – fewer stores, but in places where the brand still draws consent demand. Saks Off FifthSaks Off Fifth is narrowing its footprint to higher-performing outlet regions as discount luxury becomes more competitive online. Also read: Is Walmart open on Chrmas Day? What to know about store’s holiday hours. Full details Bloomingdale’sBloomingdale’s is shifting growth into smaller formats and e-commerce while consolidating older full-line stores. Structural changeDillard’sDillard’s remains profitable but is affected mall redevelopment trends that leave some anchor spaces obsolete. Hudson’s BayHudson’s Bay represents the sharpest shift. The company fully exited Canadian department store operations 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.