Jan 20, 2026
For decades, America's biggest retailers weren’t just where you went to buy clothes or appliances. They were the anchors for downtowns, filled suburban malls and shaped how generations shopped.
Now many of them are hanging on by a thread. Some, like Sears and Kmart, are on the verge of extinction. Saks Global has declared bankruptcy.
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Others, like Kohl’s, are shrinking, restructuring or struggling to stay afloat.
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On a recent Freakonomics podcast, retail analyst Mark Cohen described Macy’s stores as looking “terrible” (1). He doesn’t think they’ll be around another 10 years.
So what does this big shift in retail mean for the average American consumer?
Retailers on the ropes
Macy's
Macy’s announced that another 14 stores are slated to close this year as it tries to cut costs and concentrate on the most profitable stores. This follows the path of the “Bold New Chapter” plan that CEO Tony Spring introduced in 2024 (2).
In 2025, that list of closures included its historic downtown Philadelphia location, which has operated since 1911 (3). It's a stark reminder that even century-old flagships are no longer safe.
Saks Fifth Avenue and Neiman Marcus
Saks Global, the parent company of Saks Fifth Avenue and Neiman Marcus, is struggling with debt and weak performance and bankruptcy is a real possibility. Maintaining large, expensive physical stores becomes harder to justify (4).
Kohl’s
Kohl’s has spent years searching for a turnaround, going through four CEOs in four years (5). Sales have declined, they’ve been impacted by tariffs and cost-of-living and 27 closures were announced in 2025 (6).
Kohl’s core customers are middle-income households who are feeling the pain from inflation, high interest rates and rising costs, so the loss of its stores hit average Americans (7).
Sears and Kmart
Sears and Kmart aren’t just struggling, they’re disappearing. Only five Sears stores and a single Kmart are left in the U.S., a shocking collapse for stores that were once household names (8).
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Why this matters to your wallet
When big brands vanish, thousands of workers lose their jobs, not just store employees, but those in nearby businesses as foot traffic falls.
These losses impact consumers, too. When stores disappear, lack of competition may drive prices up at the remaining retailers.
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If you’re affected by store closures in your community — as an employee, consumer or both — focus on building a financial cushion.
- Boost your income. Gig work, freelancing, side hustles or selling unused items can provide extra income and breathing room.
- Shop smart. Promo codes, discounts, cashback apps and online loyalty programs can help cut costs, just be sure to read the fine print before you sign up.
- Cut subscriptions. Streaming services, apps and memberships can add up fast. Review your habits for a few months and then cancel what you don’t use.
- Pay off high-interest debt. Pay down credit cards first so that you don’t get caught in the high-interest rate trap.
- Meal plan. Cutting back on takeout can save hundreds each month, but taking the time to plan and cook meals at home can be the next step to protecting your wallet.
America’s retail landscape is changing fast, and some beloved names won’t survive the transition.
For everyday consumers, take control of your financial future while you keep an eye on the sales, but remember that snagging a deal doesn’t replace a smart financial plan.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Freakonomics (1); Forbes (2, 3); Business Insider (4); CBS News (5, 6); PYMNTS (7); New York Times (8)
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Freelance writer with an economic development and consulting background.
