The department store downturn of 2025 has continued into this year as every part of the sector, from discount to luxury, has been affected by closings or bankruptcies.

Fashion executives have warned that conditions could worsen in 2026, as 46% of those surveyed expect conditions to be worse, while only 39% expect the industry to improve, according to he 2026 Business of Fashion — McKinsey State of Fashion Executive Survey released by consulting firm McKinsey & Company.

The downsizing of department store chains will result in fewer retail options for consumers in the upcoming year.

Department store chains close dozens of locations

Iconic department store chain Macy’s said that it will close 14 locations in 11 states in 2026 as part of its “Bold New Chapter” restructuring plan, which it launched in 2024 to close up to 150 underperforming locations, Axios reported.

Macy’s had already closed 50 stores by the end of 2024 and 66 stores in 2025, as part of its restructuring plan.

Other department store chains closing stores in 2025 included JCPenney, closing about eight, and Nordstrom dumping a couple.

Discount department store chain Marshalls joined the parade in 2026, closing two major metro area stores in Los Angeles and San Jose, Calif., by Jan. 5.

Department store e-commerce platform Saks Off 5th Digital is liquidating all of its merchandise and FF&E.

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Saks Off 5th Digital liquidates

And now off-price department store chain operator Saks Off 5th Holdings LLC has won bankruptcy court approval to liquidate its Saks Off 5th Digital merchandise as well as furniture, fixtures, and equipment, beginning Jan. 26 and continuing for up to eight weeks, according to bankruptcy documents.

The order did not include luxury retailer Saks 5th Avenue’s e-commerce platform.

Judge Alfredo R. Perez of the U.S. Bankruptcy Court for the Southern District of Texas in Houston signed an interim order on Jan. 23 authorizing Saks Off 5th Digital to enter into a consulting agreement with GA Retail Solutions LLC to liquidate the e-commerce platform’s merchandise for a retail base fee of 2% to 2.25% of gross proceeds, with a minimum $250,000 base fee.

GA Retail Solutions also receives a consultant fee of 5% gross proceeds of merchandise sold through wholesale channels. The debtor will also pay the consultant a fee equal to 15% of gross proceeds from FF&E sales, according to the consulting agreement.

Saks Global Enterprises files for Chapter 11 bankruptcy

Saks Off 5th Digital parent Saks Global Enterprises LLC and 112 affiliates filed for Chapter 11 bankruptcy on Jan. 13 and 14, facing severe liquidity constraints that prevented the company from paying bills and acquiring inventory to meet customer demand, according to court filings.

Saks Off 5th launched its online platform, SaksOff5th.com, in 2013 and spun it off as a separate e-commerce platform, Saks Off 5th Digital, in 2021, according to court papers.

More closings:

• Casual Mexican restaurant chain closes more locations
• 79-year-old national trucking company closes down, no bankruptcy
• 65-year-old Home Depot rival shutters business permanently

After the bankruptcy filing, the online platform determined that its best option to maximize the value of its assets would be an orderly inventory liquidation after failing to finalize a going-concern transaction for the e-commerce assets, according to a declaration from the company’s Chief Restructuring Officer Andrew D.J. Hede.

Saks Off 5th locations to close

Saks Global in November revealed that it would begin shutting down nine Saks Off 5th locations in January, Retail Dive reported. The debtor, however, has not filed any notices of store closings at last check.

Saks Global operates 33 Saks Fifth Avenue, 81 Saks Off 5th, 36 Neiman Marcus, 2 Bergdorf Goodman, and 5 Last Call stores, according to court papers. It also operates Horchow home furnishings’ e-commerce business.

GA Retail Solutions consultant compensation:

• GA Retail Solutions receives retail base fee of 2% to 2.25% of gross proceeds from merchandise, with a minimum $250,000 base fee.
• GA Retail Solutions receives 5% gross proceeds of merchandise sold through wholesale channels.
• GA Retail Solutions receives15% of gross proceeds from FF&E sales.

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