Refining, Not Declining: There’s More to the ‘Store Closure’ Story

The opening months of 2026 have seen several well-known retailers, including Eddie Bauer, Macy’s, and Saks Fifth Avenue, announce plans to close portions of their brick-and-mortar portfolios. While headlines may frame these moves as a shift toward online-first operations, the reality is far more strategic (and optimistic) in many cases. Retailers are thoughtfully reshaping their physical footprints to better align with evolving consumer expectations and long-term growth opportunities.

These adjustments aren't simply a response to e-commerce growth, but a reflection of a more sophisticated, data-driven approach to retail. By optimizing store networks and focusing on high-performing locations, brands are positioning themselves to deliver stronger, more engaging in-store experiences. And importantly, the broader trend remains clear: shoppers continue to show a strong preference for in-store purchasing, reinforcing the enduring value of physical retail.

A Capital One report from January of this year found that a plurality of consumers (45 percent) primarily shop in brick-and-mortar stores, and nearly two-thirds (64 percent) go to physical retail locations every week. Among those who say they prefer online shopping, convenience (72 percent) and time savings (68 percent) are the top motivators. For those who prefer to visit stores, experience (53 percent) is the top motivator.

The real-world data backs up — if not strengthens — the case for consumers’ self-reported preferences. In 2025, brick-and-mortar sales accounted for an estimated 80.8 percent of retail spending. Meanwhile, in-store traffic has steadied in the early months of 2026, with data from my company (Sensormatic Solutions) revealing January visits were down just 1.6 percent year-over-year (YoY), a modest improvement from 2025’s YoY average of -2.5 percent.

Taken in conjunction with the above, news of store closings and downsizing takes on new meaning. They're not a sign of retail’s decline but of an industry entering an era of newfound refinement, driven by connected systems, advanced analytics and targeted insights. Furthermore, it’s an indication that brick-and-mortar outfits have an opportunity to pull shoppers away from online options if they play their cards right. To succeed in the long term, retailers will need to see right-sizing as the first step in an ongoing journey.

The sentiment trends outlined above make clear that while in-person purchasing remains popular, sustained preference for store visits isn’t a done deal. Maintaining the edge will hinge on leaders’ commitments to continuous innovation and improvements to customer experiences.

The data that has led decision-makers to focus on quality over quantity in their store footprints will also be the key to unlocking experiential improvements. To start, end-to-end inventory and shopper insights can help brick-and-mortar retailers chip away at online-first sellers’ reputation as the most convenient option.

For example, in-store visits and pickup options offer an immediacy that e-commerce cannot replicate. Access to real-time inventory and supply chain data safeguards this inherent advantage. Using staffing and traffic data can also help in this regard, as these factors can inform plans that keep wait times, service lines and labor spend in check.

However, retailers can also use this data to think bigger. Diverse and integrated operational insights can come together to form a working model of each brand’s “ideal store.” Retailers can compare demographics, asset protection, labor and other key data points at high-performing locations to identify commonalities that underpin success.

This ideal store model can be used as a benchmark, helping retailers to make the most of the brick-and-mortar locations that actually serve their customers. Using this model as a guide, retailers can be more confident when:

• Developing plans to bring lower-performing stores up to speed.
• Experimenting with new initiatives to align with consumer trends.
• Evaluating the impacts of proposed changes on overall performance.

The road to something better can, at times, look messy, and the moves leaders make along the way can seem counterintuitive. However, the changes to retail footprints of late were always in the cards. It’s the inevitable result of a decade of investment in end-to-end systems that allowed leaders to home in on what works for their brands with newfound precision.

Now, we will see the next step. I, for one, believe that with data leading the way, that future will be brighter than ever for retailers, consumers and the industry at large.

As president of Sensormatic Solutions, Tony D’Onofrio is responsible for strategic planning initiatives that support the brand’s ongoing innovation and industry-leading solutions.