The retail landscape across California is facing another seismic shift as 2026 begins. Following a turbulent holiday season, several major national chains have confirmed plans to shutter nearly 300 locations combined nationwide this year, a move that will inevitably impact communities from San Francisco and Los Angeles to the Central Valley.
As corporate giants pivot toward e-commerce and trim "underperforming" locations, California shoppers—already grappling with the high cost of living—need to prepare for changes at their local hubs.
Here is a breakdown of the major players involved in this 2026 shakeup and what it means for the Golden State.
The Decline of the Mall Anchor
Perhaps the most significant impact for Californians is the ongoing retreat of department stores. Macy’s has confirmed it is moving forward with plans to close approximately 150 "non-productive" locations nationwide over the next few years, with a significant chunk targeted for 2026.
California is home to some of the world's most profitable malls, like South Coast Plaza or Westfield Century City, which remain safe. However, older regional malls in the suburbs of the East Bay, the Inland Empire, and the Central Valley are on high alert. When an anchor store leaves a California mall, it often creates a domino effect, leaving massive vacancies in properties where real estate values are already volatile.
Dining and Daily Essentials taking a Hit
It isn't just department stores feeling the pinch. The closure wave is hitting daily convenience spots as well.
- Wendy’s: The fast-food giant announced plans to close up to 300 older, underperforming locations in 2026. In California, where operating costs and real estate prices are exceptionally high, older franchise locations in urban centers and aging suburbs are most at risk of being on the chopping block.
- Walgreens: Continuing its "footprint optimization" program, Walgreens is expected to close more locations in 2026. This is particularly relevant for Northern California and the Bay Area, where the chain has already scaled back significantly in recent years. Further closures could leave neighborhood pockets without a walkable pharmacy.
What This Means for California Residents
The immediate impact of these closures is twofold: job losses in local communities and a change in daily convenience. However, there is a temporary silver lining for bargain hunters.
As these stores prepare to shutter, California shoppers can expect aggressive liquidation sales beginning in Q1 2026. Keep an eye on your local branch of these major chains for "Store Closing" signage, as they will need to clear inventory quickly.
Residents across the state should monitor local news closely in the coming weeks as individual store closing announcements are made public.
