Get ready for another year of retail and restaurant businesses to completely shutter or downsize in the new year, following 2025’s brick and mortar collapses that included Party City, Rite Aid, and Joann Fabrics.
Carter’s Babies and Kids clothing stores say tariffs have impacted their business, forcing closure of 150 stores over three years.
“The [Trump] Administration has implemented significant new tariffs on products imported into the United States from a wide range of countries,” Carter’s said in a press release. “These additional tariffs have begun to add substantially to the approximately $110 million in duties on imported products paid by the Company in fiscal 2024.”
Foot Locker, acquired by Dick’s Sporting Goods in 2025, said it would be closing some stores by “taking decisive actions to ‘clean out the garage’ by clearing unproductive inventory, closing underperforming stores and laying the foundation for a fresh start in 2026.”
Grocery giant Kroger said it will be closing about 60 of it’s approximate 2,700 stores in 2026. The 18-month plan will affect stores nationwide.
Macy’s closures continue into 2026, with its “Bold New Chapter” weeding out 150 stores by the end of next year.
Red Robin burger chain in March said it was closing 70 underperforming restaurants, but later optimistically cut the number of closures down to 50, set to take place by 2030.
REI Coop stores, an outdoor clothing and gear retailer, is closing three locations, including its New York flagship store in 2026. The Boston and New York City stores will close later in 2026, and another in New Jersey is closing early in the year.
Walgreen’s is in the process of closing 1,200 stores in three years nationwide, citing issues with theft and more popular online shopping.
Wendy’s CEO said in November it was considering closing between 150-300 restaurants by the end of 2026, saying some franchisees were not sufficiently elevating the brand.