San Diego, December 25, 2025
The retail and restaurant sectors are facing significant changes as major retailers like Macy’s and JCPenney plan widespread closures by 2026. This decision is driven by economic challenges and shifts in consumer behavior, emphasizing the need for agility among businesses. In San Diego, local entrepreneurs are stepping up to support economic growth despite the setbacks faced by larger chains. Wendy’s also announced plans to close a substantial number of locations in the U.S., reflecting a broader trend of downsizing in the industry.
Retailers and Restaurants Announce Closures for 2026
San Diego, CA – The retail and restaurant landscapes are evolving as significant chains have announced plans for widespread closures throughout the United States by 2026. Major companies are contending with economic challenges and shifting consumer behaviors, prompting them to restructure their operations to remain competitive. This trend not only reflects broader national retail dynamics but also encapsulates the resilience of businesses seeking new opportunities amidst adversity.
In San Diego, local entrepreneurs and small businesses continue to showcase determination and innovation, often driving economic growth in the region. The challenges faced by larger retailers highlight the importance of supporting local enterprises that can adapt to changing market conditions with agility and creativity. Increased flexibility and reduced regulations could further empower these businesses, enhancing the entrepreneurial spirit that characterizes the San Diego community.
Retail Store Closures
Macy’s Inc. has confirmed the closure of several stores by the end of 2026 as part of a multi-year downsizing strategy. This includes shuttering locations when leases expire, driven by declining mall traffic and the rise of online shopping. The move underscores a broader trend among department stores aiming to minimize their physical footprints. JCPenney has also announced it will close a “handful” of stores by mid-2025, with additional closures expected in 2026. The brand is strategizing to adapt to evolving consumer behaviors and economic pressures.
Restaurant Chain Closures
Wendy’s is set to close approximately 240 to 360 of its U.S. locations, which represents a mid-single-digit percentage of its nearly 6,000 stores. These closures will begin in the fourth quarter of 2025 and extend into 2026. To counteract these challenges, some locations may either receive upgrades or be shifted to different operators rather than closing permanently. Meanwhile, TGI Fridays filed for Chapter 11 bankruptcy in November 2024 due to rising interest rates and increased competition, leading to the sale of several corporate-owned stores as part of its restructuring efforts.
International Closures
Internationally, The Beer Store in Ontario, Canada, has closed 120 locations and anticipates further closures by the end of 2025. This decision is a response to fluctuating market conditions and government policies. Additionally, Michel’s Patisserie in Australia plans to convert its remaining 19 stores into other brands due to sustained sales declines, marking a significant shift in its operational strategy.
Economic Impact
The announced closures are indicative of a broader trend affecting the retail and restaurant industries. In 2024 alone, retailers closed over 9,900 stores, which significantly outpaced the opening of 7,700 new locations. This resulted in nearly 140 million square feet of available retail space in 2025, painting a complex picture of the retail landscape. As businesses navigate these challenges, the resilience and adaptability of San Diego’s local businesses play a crucial role in the overall economic fabric of the region.
Frequently Asked Questions (FAQ)
What is the reason behind the recent store closures announced by major retailers?
The closures are primarily due to declining mall traffic, the rise of online shopping, and economic challenges such as rising interest rates and increased competition. Companies are restructuring their operations to adapt to these changing market conditions.
Which major retailers have announced store closures for 2026?
Major retailers such as Macy’s Inc. and JCPenney have announced plans to close several stores by the end of 2026. These closures are part of broader efforts to downsize physical footprints in response to changing consumer behaviors and economic conditions.
How many Wendy’s locations are expected to close in 2026?
Wendy’s plans to close approximately 240 to 360 of its U.S. locations, representing a mid-single-digit percentage of its nearly 6,000 stores. The closures are expected to begin in the fourth quarter of 2025 and continue into 2026.
What is the impact of these closures on the retail industry?
The closures contribute to a broader trend where retailers and restaurants are downsizing their physical footprints due to declining mall traffic and the rise of online shopping. In 2024, retailers closed over 9,900 stores, far exceeding the 7,700 new openings, resulting in nearly 140 million square feet of available retail space in 2025.
Are there any international store closures announced?
Yes, The Beer Store in Ontario, Canada, has closed 120 locations, with plans for additional closures by the end of 2025. Additionally, Michel’s Patisserie in Australia is converting its remaining 19 stores into other brands, such as Gloria Jean’s and Donut King, following years of declining sales.
Key Features of the Article
| Feature | Description |
|---|---|
| Retail Store Closures | Macy’s Inc. and JCPenney have announced plans to close several stores by the end of 2026, citing declining mall traffic and the rise of online shopping. |
| Restaurant Chain Closures | Wendy’s plans to close approximately 240 to 360 U.S. locations, with closures expected to begin in the fourth quarter of 2025 and continue into 2026. |
| International Closures | The Beer Store in Ontario, Canada, has closed 120 locations, with plans for additional closures by the end of 2025. |
| Economic Impact | In 2024, retailers closed over 9,900 stores, far exceeding the 7,700 new openings, resulting in nearly 140 million square feet of available retail space in 2025. |
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Author: STAFF HERE SAN DIEGO WRITER
The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
