American Eagle, Macy’s close centers, cut workforce

Summary

Macy's and American Eagle are closing stores, distribution centers, and fulfillment facilities in 2026 as part of ongoing restructuring plans.

Why this matters

Retail facility closures reflect changing consumer behavior and cost-cutting strategies, potentially affecting jobs and access to in-store shopping.

Several major retailers, including Macy’s and American Eagle Outfitters, are closing stores and logistics facilities as part of broader restructuring efforts to reduce costs and focus on core operations.

Macy’s plans to close 14 stores across 11 states in 2026 under its “Bold New Chapter” initiative, launched in 2024. The company previously closed 50 stores in 2024 and 66 in 2025. As part of this strategy, Macy’s will shut down two fulfillment centers in Cheshire, Connecticut, and a distribution center in South Windsor, Connecticut. Operations at these facilities will cease between March 14 and Aug. 29, 2026, resulting in 1,050 permanent layoffs, the company told employees.

Marshalls also closed two California locations in Los Angeles and San Jose before Jan. 5, 2026. Other department store chains, including JCPenney and Nordstrom, also closed stores in 2025.

American Eagle Outfitters announced the closure of its Quiet Logistics division, which served third-party clients, and three fulfillment centers. The Pittsburgh-based company acquired Quiet Logistics in 2021 and later merged it with AirTerra, a delivery startup it purchased the same year.

The company said it will end third-party logistics services over the next several months and shut down fulfillment centers in Boston and Dallas in the first half of 2026. The La Palma, California, facility is already scheduled to close this year, while American Eagle’s Atlanta center will continue operations. The company has not disclosed the number of employees affected by these closures.

In a statement to Supply Chain Dive, the company said, “This strategic decision will enable [American Eagle] to prioritize growth and focus on its portfolio of leading lifestyle brands.”

“Quiet has valued its partnerships with its customers and will assist with their transition to new providers,” the company said. “We appreciate the contributions of our associates, and we are committed to doing what we can to support them as well.”

At the time of the Quiet acquisition, CEO Jay Schottenstein described the deal as creating a platform to compete with major retailers, saying, “It’s going to give the ability for us and other retailers to be able to compete against the Amazons, the Targets and the Walmarts.”

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