The Great Retail Shakeout Is Finally Hitting Main Street
Brick-and-mortar retail is heading into a brutal reset. Store closures are accelerating as shoppers spend more online and AI-driven buying transforms how people discover and purchase products. More than 2K US store closures are already confirmed for 2026, and UBS consumer analyst Michael Lasser warns that as many as 40K US stores could disappear by 2030.
- 7-Eleven is leading 2026’s closure wave with 645 North American shutdowns, while Macy’s closed at least 66 stores last year.
- Wendy’s plans around 300 closures, while Pizza Hut owner Yum! Brands is shutting roughly 250 locations.
Pivoting toward better strategies: UBS has flagged electronics, home furnishings, and sporting goods among retail’s highest-risk categories as store traffic weakens and more spending shifts online. The pressure is already forcing brands to rethink their physical footprints, with Allbirds shutting its remaining US stores to focus on e-commerce. If closures continue accelerating at this pace, the fallout could spread well beyond retail, hitting commercial real estate, labor markets, and independent mom-and-pop businesses alike.
