Walmart CEO McMillon steps down in February, replaced by U.S. chief
Walmart CEO Doug McMillon has resigned, marking the end of an era at the world’s largest retailer.
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As the new year arrives and some retailers look to reinvent their finances, they are saying goodbye to some stores, citing poor performance and, in some cases, tariffs.
Retailers like Carter’s come to mind, the children’s clothing store announcing in October that the company would close 150 stores over the next three years.
Carter’s announced on an Oct. 27 conference call that it plans to close “low margin” stores in its third quarter report. According to the company, about 100 stores will close by 2026.
In Carter’s October call, the company said tariffs were one of the main reasons for the closure and that it would monitor tariff levels.
Last year, President Donald Trump announced a 10% tariff on imports from all countries and additional tariffs on 60 countries he deemed the largest contributors to the U.S. trade deficit, leading to increased costs for U.S. consumers.
Meanwhile, companies like Red Robin, which considered closing 70 underperforming restaurants last spring, were able to remove some restaurants from the list of candidates for closure because of improved performance. On January 7, the company announced that it had “strong financial results” for the third quarter of 2025, making it possible to reduce the number of store closures.
Here is a list of companies that will downsize in 2026 and the reasons for their closure:
Kroger and Walgreens are among the stores to close in 2026
Grocery and convenience stores that will close in 2026 include Kroger, Walgreens, and Big Lots.
In June, Kroger announced plans to close 60 stores across the United States over the next 18 months. The grocer said in its first-quarter 2025 sales report that the store closures would provide a “reasonable economic benefit.”
At the time, the company declined to provide a list of store closures, but media reports indicated closures in Illinois, Kentucky and Texas.
When USA TODAY contacted Kroger on Jan. 7, the company referred the paper to previous comments. The company announced in September that it plans to increase the number of store openings by 30%. Kroger announced in December that it would soon break ground on 14 new stores.
Walgreens Pharmacy did not immediately respond to a request for comment on Jan. 7, but announced in October 2024 that it plans to close about 1,200 underperforming stores across the U.S. over three years, citing declining profits. The company said the decline in profits was due to low drug reimbursement rates and weak retail sales.
Big Lots filed for Chapter 11 bankruptcy protection in September 2024. Bruce Thorne, president and CEO at the time, said in a press release at the time that the company “wants to move forward with a more focused business development.”
About a month later, in October, Big Lots announced plans to close more than 340 stores. The company did not immediately respond to a Jan. 7 request for comment.
Which department stores will close in 2026?
In February 2024, Macy’s announced plans to close 150 unproductive stores over three years as part of the department store’s “Bold New Chapter” strategy.
The company said in its latest press release in January 2025 that this strategy should help the company return to “sustainable and profitable sales growth.”
The company said it also plans to invest in 350 other stores by fiscal 2026, and confirmed that 66 of the 150 stores will be closed. The closures include stores in states such as California, Georgia, New York and Texas.
By March 2025, stores were already starting to close in downtown Brooklyn and Long Island.
Macy’s told USA TODAY on Jan. 7 that there was no update on the company’s closure plans.
Other department stores closing in 2026 include:
- JC Penney (February 22, 2026) – According to news station KRON-TV, the Pleasanton, California store is closing. J.C. Penney declined to comment on Jan. 7, but told KRON-TV that the company is “unable to continue with the current lease terms of this store and has not been able to find another suitable location in the market.”
- Sax Off 5th (opening in January 2026) – Closed 9 stores in Austin. Chicago; East Hanover, New Jersey; Niagara Falls, New York. Pittsburgh North (McKnight Road); Franklin Mall (formerly Philadelphia Mills) in Philadelphia; Plymouth Meeting, Pennsylvania. Washington, DC; and West Hartford, CT. Saks Off Fifth previously told USA TODAY that the closings are part of the company’s plan to “optimize” its store presence.
- Yankee Candle (2026) – Yankee Candle owner Newell Brands confirmed to USA TODAY on January 7 that it plans to close 20 Yankee Candle stores in the United States and Canada in 2026, although the company did not specify a date. The company said the closures were part of a global productivity plan and noted that closures accounted for just 1% of brand sales. Yankee Candle said it was “focusing resources on our most productive channels and store locations to strengthen our performance.”
Are there any sporting goods stores or specialty stores that will close in 2026?
Some specialty stores, including outdoor sporting goods store Orbis, have also announced closures in 2026. Orbis announced in October that it would close 31 stores by early 2026 due to tariffs.
REI also announced in October that the retailer plans to close three stores in 2026. “As markets and customer needs evolve, we must adapt to position the co-op for long-term success,” the company previously said in a statement to USA TODAY.
REI stores scheduled to close in 2026 include:
- Paramus, NJ – Closed in first three months of 2026.
- Boston – Closing at the end of 2026.
- NEW YORK CITY – REI SoHo flagship store will close at the end of 2026.
Shoe retailer Foot Locker, owned by Dick’s Sporting Goods, will close some “unprofitable” stores, Chief Executive Officer Ed Stack said during the company’s third-quarter earnings conference on Nov. 25.
“Our intent is to recover the majority of our inventory costs by the end of the year, allowing us to start 2026 afresh and position Foot Locker at the turning point for the 2026 back-to-school season,” Stack said on a conference call.
When asked on Jan. 7 about the schedule and the locations of stores that would close, Dick’s Sporting Goods referred USA TODAY to its November earnings report.
Video game retailer GameStop also plans to close hundreds of stores this month, including one in Alabama, according to the Montgomery Advertiser, part of the USA TODAY Network. GameStop did not immediately respond to USA TODAY’s request for comment on January 7th.
Contributors: Gabe Hauari, Jennifer Lindahl, Jonathan Limehouse, Mary Walras-Holdridge, Michael Collins, Michelle Del Rey, USA TODAY
Saleen Martin is a reporter for USA TODAY’s NOW team. She is from Norfolk, Virginia (757). Email sdmartin@usatoday.com.
