Retailers split on store fleet overhauls
US chains are pruning underperforming locations while testing brand conversions to lift productivity.
Four major retailers are taking sharply different paths to optimize their store fleets, balancing closures against brand conversions in a bid to lift productivity without sacrificing market share. The mixed strategies reflect divergent views on whether consolidation or reinvention will deliver the steadiest returns in a still-fragile consumer environment.
Shoe Carnival (SCVL) has abandoned its single-banner model in favor of a permanent two-brand approach, retaining both Shoe Carnival and Shoe Station to target distinct customer segments. The shift accelerated in fiscal 2025, when 101 stores were rebannered as Shoe Station—including 73 former Shoe Carnival locations and all 28 Rogan’s stores—pushing Shoe Station’s share of the fleet from 10% to 34%. Yet the company has since slowed the pace, planning only 21 additional rebanners in the first half of fiscal 2026 after initially targeting over 90% of the fleet by fiscal 2028. Alongside the conversions, Shoe Carnival expects to close 12 to 14 underperforming stores in fiscal 2026 and another 6 to 10 in fiscal 2027, booking $8.3 million in store-level asset impairments.
Macy’s (M) is leaning harder into closures, expanding its Reimagine store optimization program from 50 to 125 locations and identifying 150 underproductive stores for closure by fiscal 2026. The company already exceeded its original target, shutting 64 stores in fiscal 2024, and plans to overlay innovations from the initial 50 Reimagine stores onto an additional 75 locations. The push comes as Macy’s gross margin pressures persist, with the closures aimed at concentrating sales in higher-performing locations.
Dick’s Sporting Goods (DKS) is taking a more surgical approach, closing 88 Foot Locker stores in fiscal 2026—62 of them flagged as unproductive—while relocating or remodeling 17 others. The moves reflect a broader effort to refine the acquired fleet, with four Foot Locker, four Kids Foot Locker, and four WSS locations in North America, plus five international sites, earmarked for upgrades. The strategy contrasts with Signet Jewelers (SIG), which is prioritizing renovations and new openings over closures. Signet invested $153.5 million in capital expenditures in fiscal 2026, primarily for store upgrades and digital enhancements, and plans to spend up to $180 million in fiscal 2027 to reposition stores out of declining venues.
The divergence underscores how retailers are weighing short-term cost cuts against long-term brand equity. While Macy’s and Shoe Carnival are shrinking their footprints to protect margins, Dick’s and Signet are betting that targeted investments in store experience will pay off in higher sales per square foot—even as consumer spending remains uneven.
Source: company public filings.