SOUTH DAKOTA - The retail landscape across the Mount Rushmore State is shifting. From the busy corridors of 41st Street in Sioux Falls to the main streets of Rapid City and Aberdeen, the familiar storefronts we see in our towns are changing.
While some areas like the Empire Mall are seeing new tenants, many household names are shrinking their footprints or leaving the state entirely. For South Dakota shoppers, this means it’s time to use those gift cards and prepare for empty storefronts at local plazas.
Based on recent bankruptcy filings, corporate restructuring announcements, and ongoing "fleet optimization" plans, here are six major retail chains closing locations in South Dakota this year.
1. Lane Bryant
The most confirmed and immediate hit for South Dakota shoppers is happening at the state's largest shopping hub. The women's apparel retailer confirmed it is shuttering its location at The Empire Mall in Sioux Falls.
The store, a longtime staple for the mall, announced its final days would be in January 2026. This closure is part of a broader shift in the company's brick-and-mortar strategy. Shoppers who relied on this location for plus-size fashion will now have to turn to online ordering or competing department stores.
2. Advance Auto Parts
The auto parts giant is pumping the brakes harder than almost any other retailer this year. Advance Auto Parts announced a massive restructuring plan to shutter over 700 locations nationwide to stabilize its finances.
This puts the chain's South Dakota footprint at significant risk. With roughly eight locations in the state—including stores in Aberdeen, Brookings, Huron, Mitchell, and Rapid City—the "optimization" plan targets stores that are not meeting strict profitability targets. The company is shifting focus to its "Pro" business (mechanics), meaning smaller retail-focused shops could see the lights go out this year.
3. Family Dollar
Dollar Tree, the parent company of Family Dollar, is in the middle of a massive closure of nearly 1,000 stores nationwide. In South Dakota, where Family Dollar often serves as a mini-grocery store for rural towns, the impact is continuing to be felt.
The company has already closed locations in towns like Beresford, Reliance, and Lemmon in previous waves. As the final phase of closures executes in 2026, more underperforming stores in the state remain under review. If your local store has been struggling with inventory or staffing, it may be next on the list.
4. Walgreens
The pharmacy giant is in the midst of closing roughly 1,200 stores nationwide to cut costs. While South Dakota doesn't have the density of the East Coast, the "optimization" plan is active here.
Walgreens is focusing on closing locations that are not profitable enough to sustain rising labor costs or are too close to other existing stores. Locations in Sioux Falls and Rapid City that face stiff competition from Hy-Vee and Lewis Drug are being evaluated. The company plans to complete these closures by the end of the year.
5. GameStop
The video game retailer is shrinking fast. GameStop has been aggressively closing stores as it pivots its business model away from physical media.
Reports indicate that the company is closing a "significant number" of stores to start 2026. This impacts locations across South Dakota, specifically those in older strip malls or secondary markets. The company is focusing on profitability, meaning the small, quiet locations you visited for midnight releases are increasingly likely to be shuttered.
6. Denny’s
"America's Diner" is getting harder to find. The chain announced a plan to close roughly 150 underperforming locations nationwide to strengthen its financial health.
South Dakota has a few remaining Denny’s locations, specifically near major travel stops like Rapid City (North LaCrosse St) and Sioux Falls. These aging roadside units are at risk as the company shifts focus to high-volume, modernized restaurants. The 24-hour diner you rely on during a road trip across I-90 might be serving its last Grand Slam soon.
