INDIANA - The "retail correction" of the mid-2020s is showing no signs of slowing down as we move further into 2026. For Indiana shoppers, this year brings a mix of bankruptcies, strategic exits, and corporate restructurings that will leave significant vacancies in strip malls from Gary to Evansville.
Here are the five major retail chains shrinking their footprints—or leaving the state entirely—in 2026.
1. Big Lots
The Headline: A near-total exit from the Hoosier State.
While Big Lots began struggling in 2024, 2026 marks the final chapter for the discount retailer in Indiana. Following a collapse in its "bargain hunt" business model and failed restructuring attempts, the chain has moved to liquidate the vast majority of its remaining Indiana portfolio.
- Impact: The closures are widespread, affecting both major metros and smaller communities. Confirmed dark locations include stores in Franklin, New Haven, and New Albany, with Indianapolis and Fort Wayne seeing their remaining footprint wiped out.
- The Vibe: For many rural Indiana towns, Big Lots was a primary destination for furniture and pantry staples, leaving a gap that higher-priced competitors are unlikely to fill.
2. Value City Furniture
The Headline: A shock liquidation for a furniture staple.
In a surprising development for 2026, the parent company of Value City Furniture has initiated a liquidation phase that impacts its Indiana operations heavily. Known for being a budget-friendly option for families, the chain is winding down operations across the state.
- Affected Areas: Central Indiana is taking the hardest hit. The "Store Closing" banners are already up, signaling the end of an era for a brand that has been a fixture in Indiana living rooms for decades.
- Timeline: Most locations are running final liquidation sales through the spring, with complete closures expected before the mid-year mark.
3. LL Flooring (formerly Lumber Liquidators)
The Headline: The final nail in the floorboards.
After entering bankruptcy proceedings, LL Flooring is winding down its business entirely. This isn't just a reduction; it is a total exit. For Indiana homeowners looking for discount hardwood or vinyl, this option is disappearing permanently in 2026.
- The Scope: The closure affects all Indiana locations, including key stores in the Indianapolis metro area.
- The Result: The exit of LL Flooring leaves Home Depot and Lowe's with even less competition in the home improvement sector, potentially driving up renovation costs for locals.
4. Walgreens
The Headline: The "optimization" hits street corners.
Walgreens is in the midst of a massive national correction, aiming to close 1,200 stores. In 2026, the axe is falling on Indiana locations that have been deemed "unprofitable" or too close to other locations.
- Strategy: Unlike the total exits of Big Lots or LL Flooring, this is a strategic thinning. You will likely see the closure of older, slower locations in Gary, South Bend, and oversaturated parts of Indianapolis, forcing customers to transfer prescriptions to busier hubs nearby.
- The Issue: The primary driver here is staffing shortages and pharmacy profitability, with the chain favoring locations that can support their new "healthcare hub" model over traditional corner drugstores.
5. Advance Auto Parts
The Headline: Shifting gears away from the DIY market.
Despite having a massive presence in the Midwest, Advance Auto Parts is closing hundreds of corporate stores in 2026 as part of a restructuring plan to save the business.
- The Change: The company is pivoting toward serving professional mechanics rather than the DIY crowd. This means many smaller retail-front stores in Indiana's suburbs are being shuttered or converted into "Pro Hubs" that aren't designed for walk-in traffic.
- Consolidation: Expect to see closures in competitive markets like Lafayette and Bloomington where competitors like AutoZone and O'Reilly have gained dominant market share.