U.S. Malls Lose Dillard’s, Macy’s, and JCPenney Amid Rapid Bankruptcy Wave

Anchor department stores once defined the American mall, setting the tone for traffic, tenant identity and regional prestige. In the past two years, these anchors have begun vanishing again—this time not because people stopped visiting malls, but because chains are shrinking, restructuring or reacting to financial strain. The closures of Dillard’s, Macy’s and JCPenney are reshaping the retail landscape, and mall owners are scrambling to adjust to a new era.

Mall traffic rebounded sharply in October 2025, according to Placer.ai data, as shoppers returned to indoor malls, outlets and open-air centers. Year-over-year and month-over-month visits climbed, signaling renewed consumer enthusiasm heading into the holidays. The resurgence shows that foot traffic is not the primary cause of closures.

A Storefront Retreat Despite Rising Foot Traffic

Macy’s confirmed the closure of 66 non-go-forward locations in January 2025 as part of its “Bold New Chapter” plan. The company aims to reduce roughly 150 underperforming stores over three years while investing in 350 stronger locations. Executives frame the closures as necessary to refocus resources on elevated shopping experiences and digital performance.

JCPenney will close eight locations by mid-2025, including sites in California, Colorado, Idaho and other states. These closures follow more than 200 shut locations since the company filed for Chapter 11 bankruptcy in 2020. According to the retailer, the latest closures stem from expiring leases, market shifts and individual store conditions—not its new Catalyst Brands merger.

Dillard’s, an 87-year-old department store, has closed multiple mall locations over the past two years, often without broad announcements. Stores in Tennessee, Ohio, Florida, Nebraska and Arizona have been shuttered permanently, some involving layoffs and WARN notices. The closures paint a different picture from upbeat quarterly commentary that emphasized inventory control and modest sales gains.

When Closures Hit Home: Bankruptcy Pressure Ripples Across Brands

Closures are not isolated missteps but part of a broader retail economy stressed by bankruptcy waves. Major retailers including Forever 21, Claire’s and Joann have shut hundreds of stores, with Joann closing all 850 after a second Chapter 11 filing. The scale illustrates a system where even improving mall traffic cannot offset balance sheet pressure or long-term sales erosion.

In North Texas, a Dillard’s at The Shops at Willow Bend will close between January 12 and 25, 2026. The move affects 93 employees and coincides with a major redevelopment plan that will demolish a portion of the mall to make room for retail, residential units and hospitality. The project, dubbed The Bend, is projected to last three years and redefine how the property functions.

When an anchor folds, smaller tenants lose the foot traffic and legitimacy that department stores generate. Lease terms, co-tenancy clauses and tenant mix are disrupted, creating gaps that ripple across food courts, specialty stores and entertainment venues. Mall operators are forced to rethink their default formula of three major anchors and dozens of midrange retailers.

A Retail Landscape That Will Not Revert

With traditional retail unstable, mall owners are opting for large-scale redevelopment. Projects like The Bend emphasize mixed-use planning, integrating apartments, hotels and office space alongside fewer retail options. The strategy turns malls into lifestyle destinations rather than pure shopping hubs, mirroring the modern preference for multifunctional communal spaces.

Sporadic closures will likely continue even if consumer traffic remains solid. The retail industry’s realignment places stability above expansion, and mall owners increasingly prioritize versatility rather than chasing legacy anchors. As brands focus on resilient footprints and omnichannel growth, the American mall must reinvent itself or risk losing relevance one anchor at a time.