Kroger, and other big stores in the U.S., has announced the closure of many of their headquarters, which has worried many of their customers who depend on these brands. Even though the news is not very positive to start the new year, all of these companies say the closures are part of strategies to being stable after a very difficult year 2025. What are the companies that will make these adjustments? Macy’s, Kroger, Saks Off 5th, and REI. So, let’s learn more about this closing situation.
Why are there so many stores closing?
Many companies are facing similar issues, and the main one is that less people go to the physical stores. Today, most people prefer online shopping, so big stores have to change their way of operating. What’s more, inflation and other economic factors made 2025 a very complicated year.
This is why these companies are making tough decisions like closing stores that are not functioning that well and focusing on those that do have more customers. Basically, it is not a total closure, it’s a reorganization to survive the situation.
Macy’s
This is one of the most popular stores in the country and, in February 2024, it had already announced it would close more than 100 stores. This decision is part of a strategy called ‘’Bold New Chapter’’, which aims to grow but focusing on the stores that operate best. In the first months of 2025, Macy’s had already closed 66 stores, including a Macy’s Furniture Gallery located in Staten Island (New York).
According to Macy’s investors, the company plans on closing at least 100 stores before the end of this year. The idea is to leave just the best locations and improve customers’ experience in those stores. So, Macy’s is not disappearing, it’s adapting.
Kroger
Kroger is the biggest supermarket chain in the country and it also announced that it will close some stores. In particular, it plans on closing about 60 supermarkets that are not operating very well in the next 18 months.
The company explained that these closures will increase efficiency, profits, and it will help reinvest in offering a better experience for its clients. Kroger has more than 2,700 stores in 35 states, using names like Smith’s, Ralphs, King Soopers, or Fred Meyer.
Even though Kroger hasn’t shown an exact list of the stores that will be closed, the company did confirm that affected workers will be offered positions at other stores. This plan comes at a time when Kroger is also dealing with labor issues. According to the United Food and Commercial Workers union, many employees have complained about chronic understaffing in stores.
Saks Off 5th and REI
Apart from Macy’s and Kroger, there are other companies also announcing closures: Saks Off 5th and REI. Let’s start with Saks Off 5th, shall we?
Saks Off 5th is known for selling luxury products with discounts, and it stated that it will close some stores at the beginning of this year. The closures will happen in several states: Texas, Illinois, New York, New Jersey, Pensilvania, Washington D.C., and Connecticut.
Now, let’s talk about REI that sells outdoor and sports gear. According to Retail Dive, REI will close three stores in 2026. The first will be in Paramus, New Jersey, followed by locations in SoHo, New York City, and Boston.
So…
For shoppers, this may mean that some nearby stores will close, but the stores that remain open are likely to be stronger, better staffed, and better stocked. In short, these closures are necessary adjustments to help these companies compete and grow in the coming years.