The retail landscape in the Heart of Dixie is seeing a mix of transformation and contraction in 2026. While Alabama has avoided the worst of the department store closures hitting other Southern states, it is facing a significant correction in the discount and pharmacy sectors. From the final redevelopment of a Birmingham landmark to the “optimization” of state-run liquor stores, the map is being redrawn.
Here is the definitive guide to the major store closures confirmed for Alabama in 2026.
1. The Mall Redevelopment: Brookwood Village
The Headline: The “Zombie Mall” finally gets a new life. Location: Homewood/Mountain Brook.
The biggest retail story of 2026 isn’t a simple closure—it’s a resurrection. After sitting largely vacant for years, the Brookwood Village site is officially transitioning away from its life as a shopping mall.
- The Project: A partnership between the cities of Homewood and Mountain Brook has cleared the way for a massive redevelopment. The most notable tenant moving in is Andrews Sports Medicine, which plans to repurpose the former Belk anchor space into a world-class orthopedic center.
- The Impact: For local shoppers, this marks the final end of Brookwood as a retail destination. Demolition and renovation crews are active in 2026 to transform the concrete box into a mixed-use medical and lifestyle campus.
2. The Discount Exodus: Big Lots
The Headline: A massive retreat from the Wiregrass and Central Alabama. Locations: Bessemer, Huntsville, Prattville, Troy, and Dothan (Lease Reviews)…