IOWA - The retail landscape in Iowa is shifting dramatically this year. While the national economy stabilizes, the "optimization" strategies of major corporations are hitting the Midwest hard. For Iowans, this wave of closures is particularly concerning because it isn't just about losing a place to shop; it is about the creation of "pharmacy deserts" and the loss of essential services in rural counties and mid-sized cities alike.
Here are five major chains reducing their footprint in the Hawkeye State in 2026.
1. Big Lots: The End of an Era
The discount furniture and home goods retailer is one of the most visible casualties of 2026. Following its bankruptcy filing, Big Lots has moved from "restructuring" to a significant liquidation phase in Iowa.
- The Impact: Several key locations have been targeted for closure, including stores in Des Moines (Merle Hay Road), Davenport (N. Brady Street), and Burlington.
- Why: The chain could not compete with Walmart's pricing or Amazon's convenience, and rising rents in larger commercial corridors made these large-footprint stores unsustainable.
- Shopper Tip: If you see a "Store Closing" banner, stop in immediately. Unlike standard sales, these liquidations often include selling off the store fixtures (shelving, rolling carts), which are great for garage workshops.
2. Advance Auto Parts: The DIY Downsizing
Advance Auto Parts is in the midst of closing over 500 corporate stores nationwide by mid-2026. Iowa, with its high density of auto parts stores per capita, is seeing a consolidation.
- The Impact: The closures are affecting "redundant" stores in markets like Cedar Rapids, Des Moines, and Council Bluffs. If there are two Advance Auto locations within a 10-minute drive of each other, the smaller, older location is likely to be huttering.
- The Pivot: The company is shifting its focus from retail DIY customers to selling parts directly to professional mechanic shops.
- Shopper Tip: Watch for deep discounts on motor oil and cleaning supplies as these locations try to clear inventory without shipping it to other stores.
3. CVS Pharmacy: The Urban Retreat
CVS is continuing its three-year plan to close 900 stores nationwide, and 2026 sees the final wave of these cuts hitting Iowa.
- The Impact: Specific closures have been identified in college towns and metro areas, including locations in Ames (Lincoln Way) and Des Moines (Euclid Ave).
- Why: CVS is pivoting away from retail and toward primary care services. They are closing older stores that lack the square footage to add "HealthHUB" clinics.
- Shopper Tip: If your prescriptions are at a closing CVS, they will likely be automatically transferred to the nearest CVS, which might be miles away. Call them now to transfer them to a Hy-Vee or local independent pharmacy if that is more convenient.
4. Family Dollar: The Rural Pullback
Dollar Tree, the parent company of Family Dollar, is closing nearly 1,000 stores, and this hits rural Iowa the hardest. In many small towns, Family Dollar served as the only grocery store.
- The Impact: Closures are rippling through the tri-state area, affecting small communities that rely on these stores for affordable staples.
- The Consequence: This creates "food deserts" where residents may have to drive 20+ minutes to the nearest full-service grocery store.
- Shopper Tip: Check the expiration dates on food items at closing sales. Distribution to these stores often slows down weeks before the announcement.
5. Walgreens: The "Pharmacy Desert" Risk
Similar to CVS, Walgreens is closing roughly 1,200 stores over the next three years to cut costs.
- The Impact: While specific lists are released in waves, the strategy targets locations with "low profitability," which disproportionately puts rural Iowa stores and low-traffic urban locations at risk.
- Why: Reimbursement rates for drugs have dropped, and retail theft in some areas has eaten into margins.
- Shopper Tip: If you rely on a specific Walgreens for specialized medication, ensure you have a backup plan. When these stores close, the files are often bought by competitors, meaning your data could end up with a chain you don't use.
What to Do Next:
- Support Hy-Vee and Fareway: As national chains retreat, regional grocers like Hy-Vee and Fareway remain stable. Shifting your spending there helps keep local jobs secure.
- Check Your Gift Cards: If you have cards for Big Lots or Family Dollar, use them this weekend. Once a store enters final liquidation, it may stop accepting gift cards weeks before the doors actually lock.
- Secure Your Meds: Don't wait for a letter in the mail. If your local pharmacy looks empty or understaffed, ask the pharmacist directly if they are on the closure list.