Here is the breakdown of the retail shakeup hitting Indiana in 2026.
The Mall Pivot: Circle Centre Becomes "Traction Yards"
The biggest story of 2026 is the official death of Circle Centre Mall as a shopping destination.
- The Transformation: The mall is currently emptying out as developers Hendricks Commercial Properties move forward with "Traction Yards," a $600 million open-air campus.
- The Reality: For decades, Circle Centre was the anchor of downtown Indy. Its transition into an office and residential hub signals that the era of the "downtown mall" is over. While some exterior restaurants remain, the interior retail corridors that hosted generations of shoppers are going dark to make way for the future.
The Discount Wipeout: Big Lots
The collapse of the home discount sector has landed hard in Indiana's mid-sized cities. Big Lots has identified multiple locations for closure as part of its restructuring.
- The Hit List:
- Indianapolis: The store at 8401 Michigan Rd is shuttering.
- Fort Wayne: The 3958 Illinois Rd location is going dark.
- Regional Hubs: Stores in Elkhart (Hively Ave), Kokomo (Markland Ave), and Warsaw (Frontage Rd) are also on the closure list.
- The Impact: In cities like Kokomo and Warsaw, Big Lots wasn't just a place for cheap snacks; it was a primary source for affordable furniture and mattresses. Its exit leaves massive, 30,000-square-foot vacancies in strip centers that are already fighting to retain tenants.
The Pharmacy Desert: Walgreens in Indy
While the suburbs lose furniture stores, Indianapolis is losing access to neighborhood healthcare.
- The Closure: Walgreens has confirmed the closure of its location at 5095 E. Thompson Road in Indianapolis.
- The Trend: This follows a national pattern of closing "underperforming" stores on corners that are saturated with competition. However, for residents in the southeast Indy metro who relied on this specific drive-thru for prescriptions, the closure forces a longer commute to overburdened competitors.
The Rural Squeeze: Family Dollar
In Indiana's vast rural stretches, the Family Dollar is often the general store.
- The Threat: As the chain executes its plan to close hundreds of stores nationwide in 2026, Indiana's rural network is vulnerable.
- The Fear: For towns where the local grocery store closed years ago, the Family Dollar became the de facto replacement. If these locations shutter, residents in isolated communities will face significantly longer drives just to buy cleaning supplies and non-perishable food.
The mall is becoming a tech campus. The furniture store is becoming a vacant lot. And the corner drugstore is fading away. The "Crossroads of America" are still busy, but the places to stop and shop are becoming fewer and farther between.
Circle Centre Mall emptying as developers make new plans for property
