Additional Coverage:
- 7 Mall Favorites Most Likely to Close in 2026 – Is Yours One? (financebuzz.com)
As mall traffic continues to dwindle, numerous retailers are closing stores or facing financial difficulties, highlighting the challenges brick-and-mortar shopping centers face today. Iconic names such as Forever 21 and The Body Shop have already shuttered all their U.S. locations in recent years, and others like At Home have filed for bankruptcy while keeping some stores open.
This trend of store closures and bankruptcies is expected to continue, and shoppers might find opportunities to snag deals during going-out-of-business sales. Here are several retailers to watch closely in the near future due to financial pressures or restructuring efforts:
1. Saks Fifth Avenue
Saks Fifth Avenue, along with its parent company Saks Global, is burdened by significant debt after consolidating multiple luxury brands. Although it still operates flagship stores and mall locations, analysts warn that a slowdown in luxury spending and high financial leverage could lead to restructuring or closures by 2026.
2. Victoria’s Secret
Victoria’s Secret is in the midst of a multi-year restructuring plan, closing underperforming stores through 2026 to focus more on online sales and international markets like China. While bankruptcy hasn’t been filed, ongoing profitability challenges and a large mall presence leave the brand vulnerable if sales decline further.
3. JCPenney
After filing for bankruptcy in 2020, JCPenney continues to operate many mall stores under new ownership. However, declining mall traffic and fierce online competition may force additional financial restructuring if sales do not improve.
4. Sleep Number
Known for its adjustable beds, Sleep Number faced severe financial strain, including a 16% drop in net sales and mounting losses. This culminated in a bankruptcy filing in June 2026 after issuing a “going concern” warning earlier in the year.
5. Macy’s
Macy’s plans to close approximately 150 underperforming stores by the end of 2026 as part of a broader turnaround strategy focused on enhancing its luxury brands and digital channels. While bankruptcy is not expected imminently, ongoing challenges in mall traffic and e-commerce competition could increase financial pressure.
6. Express
Express, a fast-fashion retailer, filed for bankruptcy in 2024 and has since shuttered many stores, concentrating on online sales. Analysts suggest further closures or financial difficulties may arise if the company cannot adapt to the evolving retail landscape.
7. Kohl’s
Kohl’s has tried to attract customers with in-store concepts like Sephora and Babies “R” Us, but declining revenues amid stiff competition continue to pose challenges. Although not bankrupt, Kohl’s heavy reliance on mall locations makes it susceptible to potential restructuring if its turnaround efforts falter.
What This Means for Shoppers and Your Wallet
While these retail struggles reflect broader shifts in consumer behavior and economic pressures, they may also present opportunities to save money during clearance and going-out-of-business sales. Savvy shoppers can leverage these sales to reduce expenses and redirect savings toward other financial goals.
Regardless of where you stand financially, there are steps anyone can take to improve their money situation:
- Increase your income: Consider side hustles or part-time gigs that complement your current job to boost earnings.
- Grow your wealth: Harness the power of compound interest and long-term investing by creating a financial plan-consulting a professional can be valuable, especially if you aim to retire early.
- Maximize savings: Take advantage of discounts, senior benefits, and competitive rates on essentials like car insurance while avoiding hidden expenses that drain your budget.
In a retail landscape undergoing significant change, staying informed and financially prepared is key to weathering uncertainty and making the most of available opportunities.
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- 7 Mall Favorites Most Likely to Close in 2026 – Is Yours One? (financebuzz.com)