From beloved local grocers to massive department stores, here are six major chains that are reducing their presence in California in 2026.
1. Macy’s: The Mall Exit Continues
As part of its ongoing "A Bold New Chapter" strategy, Macy's is continuing to shed underperforming stores to focus on its luxury brands (Bloomingdale's and Bluemercury). California is losing two key locations in the first quarter of 2026.
- The Impact: The confirmed closures are the Grossmont Center location in La Mesa and the West Valley Mall store in Tracy.
- Why: These closures are part of the 150-store reduction plan announced previously. The company is actively pivoting away from older, lower-tier malls.
- Shopper Tip: If these were your go-to spots for returns or pickups, you will now need to drive to neighboring cities or rely on mail-in returns.
2. Big Lots: The "California Pullback"
The discount home goods retailer is struggling to survive after its bankruptcy filing, and California is bearing the brunt of the downsizing.
- The Impact: Reports indicate that California could lose up to 75 of its 109 locations as lease negotiations fail. While some stores have already started liquidation, the "clean sweep" of closures is continuing heavily into 2026.
- Why: High rent and inflation have made the "treasure hunt" discount model difficult to sustain in high-cost coastal markets.
- Shopper Tip: Furniture deals are the real draw here. If your local store has a "Store Closing" banner, look for 20-40% off sofas and patio sets immediately—inventory is not being restocked.
3. 7-Eleven: The Quiet Exodus
While 7-Eleven isn't going bankrupt, it is aggressively closing underperforming locations, and California is a primary target due to operational challenges.
- The Impact: The chain is closing over 400 stores across North America, with a significant number in California. The closures are often sudden, with franchisees citing rising crime, theft, and operational costs as the driving factors.
- The Shift: You may see your local corner store boarded up overnight. The company is shifting focus to food-centric locations in safer, high-traffic areas.
4. Denny’s: Lights Out on "America's Diner"
The 24-hour diner icon is closing 150 locations by the end of this year, and California—a state where Denny’s has a massive footprint—is seeing multiple closures.
- The Impact: The company has explicitly mentioned the unique cost pressures of operating in California (including fast-food wage mandates) as a reason for reevaluating its portfolio.
- Why: Older restaurants are being shuttered rather than renovated.
- Shopper Tip: If you have a stack of Denny’s gift cards, use them sooner rather than later, as your nearest location might be further away by year's end.
5. Advance Auto Parts: The Bay Area Retreat
As mentioned in national reports, Advance Auto Parts is closing over 500 corporate stores by mid-2026. California, specifically the Bay Area, is seeing a consolidation.
- The Impact: The company is closing "redundant" stores that are too close to one another to cut costs.
- The Pivot: Expect to see the brand focus more on "Pro" sales to mechanic shops rather than DIY retail.
- Shopper Tip: Watch for "fixture sales" at these locations. Mechanics and hobbyists can often buy shelving, tools, and even diagnostic equipment for cheap when the doors close.
6. Raley’s (and Nob Hill Foods): The Local Loss
Even regional favorites aren't immune. The West Sacramento-based grocery giant is trimming its portfolio in Northern California this year.
- The Impact: Two specific closures have hit early in 2026: the Raley's in Roseville (closing late January) and the Nob Hill Foods in Mountain View (closing in May).
- Why: The company cited lease expirations and "store performance" as the reasons, a sign that even grocery chains are tightening their belts in competitive markets.
- Shopper Tip: For Mountain View residents, this is a significant loss of a neighborhood grocer. Residents are advised to check the Raley’s app for transfer offers to nearby locations.
What to Do Next:
- Use Your Gift Cards: If you have credit for Macy's or Big Lots, spend it now. Inventory in closing stores dries up fast.
- Check Return Policies: Items bought at "closing" locations are often "Final Sale." Do not expect to be able to return that discounted sofa to a different store later.
- Support Local: As big chains leave, look for locally owned alternatives. Your neighborhood hardware store or independent diner isn't going anywhere if you support them.
