From historic department stores to essential neighborhood pharmacies, here are the five major retail chains shrinking their California footprint as we head into February.
1. Macy's
As part of its "First Wave" of 2026 closures, Macy's has confirmed that two prominent California locations are in their final weeks of operation. These closures are part of the company's "Bold New Chapter" strategy to shed 150 underperforming assets.
- Locations: The Grossmont Center in La Mesa (San Diego County) and the West Valley Mall in Tracy (Central Valley).
- Timeline: Liquidation sales began in January and are expected to wrap up by late February or early March.
- The Impact: The closure at Grossmont Center is particularly historic, marking the end of an era for one of San Diego’s longest-running retail hubs.
2. Rite Aid
In a stunning development reported by local unions in mid-January 2026, Rite Aid has filed for a second Chapter 11 bankruptcy. Unlike previous restructuring efforts, reports indicate this filing includes plans to auction off or close all remaining California stores.
- The Situation: After closing hundreds of stores in 2024 and 2025, the pharmacy chain is reportedly exiting the state entirely due to insurmountable debt and operating costs.
- Immediate Impact: Shoppers should expect immediate liquidation sales at remaining locations, with prescriptions likely being sold to Walgreens or CVS.
3. Walgreens
Walgreens is pressing forward with its massive plan to close 1,200 stores nationally, and February's axe is falling heavily on the San Francisco Bay Area.
- Confirmed Closures: New announcements have targeted stores in Oakland and Richmond, continuing a trend of the retailer exiting urban cores in Northern California.
- The Reason: The company cites "challenging economic conditions" and profitability issues. These closures are exacerbating "pharmacy deserts" in these communities, forcing residents to travel further for basic medication.
4. Saks Global (Saks OFF 5TH)
Following the blockbuster merger of Saks Fifth Avenue and Neiman Marcus, the newly formed "Saks Global" entity has filed for Chapter 11 bankruptcy protection to manage its massive debt load. The immediate casualty is the off-price division.
- The Cuts: The company has begun closing Saks OFF 5TH locations, with several California stores expected to be in the initial tranche of closures starting this month.
- The Vibe: This signals a contraction in the "aspirational luxury" market, as the company pivots to protect its full-line flagship stores while shedding the discount outlets.
5. Carter's
In a move that will affect parents across the state, Carter's (which also owns OshKosh B'gosh) has announced plans to close nearly 100 stores in 2026. The company has cited rising tariffs and operational costs as the primary drivers.
- The Strategy: The closures are targeting mall-based locations where foot traffic has declined, with the brand shifting focus to its profitable e-commerce operations.
- What to Watch: Expect "Store Closing" signs to appear at older mall locations in California suburbs throughout February as the company begins this massive fleet reduction.