The retail landscape is set for a significant shake-up in 2026 as numerous major retailers announce plans to close hundreds of stores. This wave of closures is expected to impact jobs and local economies across the UK and US, driven by evolving consumer habits and operational challenges.
Key Takeaways
- Hundreds of retail locations are slated for closure in 2026.
- Poor customer service and a preference for online convenience are key drivers.
- Department stores, grocery chains, and specialty retailers are among those affected.
- Shifts in consumer behaviour and rising operational costs are contributing factors.
The Growing Trend Of Closures
Following a challenging 2024, store closures are projected to escalate further in 2026. Experts point to a combination of factors, including the persistent shift towards online shopping, the demand for convenience, and the impact of poor customer experiences in physical stores. Retailers that have struggled to adapt their supply chains and integrate technology to manage costs are particularly vulnerable.
Retailers Announcing 2026 Closures
A number of prominent retailers have already confirmed plans for significant store closures in 2026, often as leases expire on underperforming locations. These include:
- Macy’s: Plans to close approximately 150 locations by the end of 2026 as part of its "Bold New Chapter" strategy.
- Kroger: Will close about 60 underperforming supermarkets across the US over the next 18 months.
- Saks Off 5th: Will close select store locations in early 2026 to optimise its retail footprint.
- Carter’s: Expects to close around 100 North American retail stores in fiscal 2025 and 2026.
- Newell Brands (Yankee Candle): Plans to close 20 Yankee Candle stores in the US and Canada starting January 2026.
- River Island (UK): Set to close around 32 stores in January 2026 as part of its restructuring plan.
- Poundland (UK): Confirmed the closure of an additional 14 locations in January and February 2026.
- Trespass (UK): Preparing to close its Southampton store in March 2026.
Evolving Consumer Expectations
While online sales constitute a relatively small percentage of total retail transactions, the internet has fundamentally reshaped consumer expectations. Customers now demand competitive pricing, readily available stock, and efficient service. Poor in-store experiences, including disorganisation and long queues, are increasingly driving shoppers to online alternatives. Research indicates that a significant portion of consumers will reduce spending after a negative customer experience, with service delivery issues, communication problems, and employee interactions being major pain points.
Partnerships Concluding
Beyond individual store closures, some retail partnerships are also set to end. The shop-in-shop collaboration between Target and Ulta Beauty, which operates in approximately 600 Target stores, will conclude in August 2026. This marks another shift in how retailers are adapting their physical spaces and offerings.
Looking Ahead
The retail sector continues to undergo a profound transformation. While closures are a significant trend, the market also sees expansions and new entries, particularly in the UK fashion sector with brands like Gap, Crew Clothing, and Oliver Bonas planning further physical retail growth, and new entrants such as Antler, Lefties, Garage, and Fabletics preparing to launch in the UK.
