The Death of Colorado Retail? Massive Store Closures Confirmed for 2026

This year, the state is facing a "Retail Reckoning" that goes deeper than just empty storefronts. We are witnessing the potential breakup of the state's dominant grocery duopoly, the retreat of department stores from "lifestyle centers" that were supposed to be the future, and the total collapse of the home goods discount sector.

Here is the breakdown of the retail shakeup hitting the Centennial State in 2026.

The Grocery Earthquake: 91 Stores in Limbo

The biggest story of 2026 is the Kroger (King Soopers) / Albertsons (Safeway) merger.

• The Number: To satisfy federal regulators, the companies have listed 91 Colorado stores to be divested (sold) to C&S Wholesale Grocers.
• The Impact: This is a massive disruption. Colorado has one of the highest concentrations of these two chains in the country. If the deal proceeds, nearly 100 neighborhoods—from Capitol Hill to Fort Collins—will see their local grocery store change hands to a company with little retail presence in the West, raising fears of eventual closures or price hikes in a market where food inflation is already high.

The Macy's Retreat: Hitting the "New" Malls

Macy's "Bold New Chapter" strategy is proving that even modern, open-air centers aren't safe.

• The Closures: The retailer has confirmed it is closing its locations at The Shops at Northfield (Stapleton) and The Streets at Southglenn (Centennial).
• The Significance: These aren't dying 1970s malls; they are the "future" of retail. The exit from Southglenn is particularly damaging, as it leaves the mixed-use development without its primary anchor, complicating future redevelopment plans for the site.

The Discount Collapse: Conn's & Big Lots

The era of the "Big Box" discount store is ending in the Denver suburbs.

• Conn's HomePlus: The furniture and electronics chain has liquidated all 6 of its Colorado locations, leaving massive empty shells in Arvada, Aurora, and Englewood.
• Big Lots: The discount retailer is shrinking its footprint aggressively. 2026 closures include locations in Grand Junction, Littleton, and Longmont.
• The Result: For landlords, filling these 30,000+ square foot boxes is a nightmare. For shoppers, it means fewer options for affordable furniture and household essentials, pushing more consumers toward Walmart or Amazon.

The "Springs" Struggle: Chapel Hills Mall

While the Citadel Mall has long been the subject of redevelopment rumors, 2026 puts the spotlight on the north side.

• The Status: Chapel Hills Mall in Colorado Springs is facing an existential crisis. Following the exit of anchors like Burlington and Sears in previous years, the mall is struggling to retain foot traffic.
• The Outlook: With deferred maintenance becoming visible and national chains pulling back, 2026 is a make-or-break year. Unless a major pivot to "mixed-use" (apartments) is announced, the center risks falling into true "dead mall" territory.

The 16th Street Pivot: A Quiet Reopening?

In downtown Denver, the chaos of construction is finally ending, but the retail damage is done.

• The Reality: The massive renovation of the 16th Street Mall is complete, but the tenants haven't all returned.
• The Challenge: 2026 will be the test. Can the new, wider sidewalks and transit lanes attract locals back to a corridor that was decimated by years of construction and remote work? Early signs show a pivot toward "experience" (restaurants/bars) rather than the retail flagship stores that defined the street in the 2010s.

The grocery store you’ve shopped at for 20 years might have a new name by December. The department store at your local outdoor mall is going dark. And the discount furniture store down the street is already empty. The "Boom" is still happening in housing, but the "Bust" has officially arrived for retail.

16th Street's renovation is complete, but the city needs people to visit the area now