The Death of Vermont Retail? Massive Store Closures Confirmed for 2026

As 2026 begins, the Green Mountain State is facing a unique "Retail Apocalypse." It isn't just the big national chains failing; it is the contraction of our own heritage brands and the hollowing out of the rural infrastructure that keeps our small towns livable. From the shockwaves in Manchester to the empty storefronts in Berlin, the map is changing.

Here is the breakdown of the retail shakeup hitting Vermont in 2026.

The "Hometown" Heartbreak: Orvis Retreats

The most significant story of 2026 hits right at the State identity.

• The News: Orvis, headquartered in Manchester since 1856, has confirmed it is closing 36 locations (31 full-line stores and 5 outlets) by early 2026.
• The Meaning: While Orvis is a national brand, it is the soul of the Vermont outdoor economy. This massive pullback—representing nearly half of its retail fleet—is a jarring signal that even the most "heritage" brands are struggling to sustain brick-and-mortar operations in the current economy. It casts a shadow over the Manchester flagship's influence and the brand's physical presence.

The Discount Wipeout: Big Lots

The collapse of the home discount sector has landed in Central Vermont.

• The Closures: Big Lots has identified its Vermont locations for closure as part of its bankruptcy proceedings.
  • Berlin: The location serving the Montpelier/Barre area is on the hit list.
  • Rutland: The store serving the southern commercial hub is also targeted.
• The Impact: In Vermont, where furniture options are often limited to high-end boutiques or distant big boxes, Big Lots filled a critical "middle" gap. Its exit leaves massive vacancies in two of the state's few strip malls and forces working-class families to drive significantly further for affordable home goods.

The Rural Squeeze: Family Dollar

In Vermont's Northeast Kingdom and rural pockets, the Family Dollar is often the de facto grocery store.

• The Threat: As parent company Dollar Tree executes its plan to close 1,000 stores nationwide in 2026, Vermont's rural network is highly vulnerable.
• The Crisis: For residents in towns where the local general store closed years ago, Family Dollar became the primary source for diapers, cleaning supplies, and pantry staples. The loss of these stores creates immediate "goods deserts," forcing residents to navigate snowy roads for basic necessities they used to buy in town.

The Pharmacy Desert: Walgreens

The national downsizing of Walgreens is a public health issue in Vermont.

• The Trend: The chain is closing 1,200 stores nationally, and Vermont's low-volume, high-cost rural locations are at risk.
• The Fear: In many Vermont towns, the Walgreens (often a converted Rite Aid) is the only pharmacy. If these locations go dark, the elderly population faces a crisis of access, forced to rely on mail-order services that can be unreliable during winter storms.

The Mall Watch: University Mall (South Burlington)

While University Mall (UMall) remains the State premier shopping destination, it enters 2026 on a watchlist.

• The Department Store Factor: With Macy's closing 150 stores nationally, the South Burlington location is under scrutiny.
• The Reality: If Macy's were to exit, it would leave the state's largest mall without a traditional department store anchor, fundamentally changing the retail gravity of Burlington. For now, the doors are open, but the uncertainty hangs over the upcoming lease cycles.

The outdoor giants are shrinking. The discount stores are leaving the mountains. And the rural general stores are boarding up. The state is becoming more reliant on online delivery, but with our weather and geography, that is a fragile lifeline to replace the brick-and-mortar stores we are losing.

Nearly 1,000 Family Dollar, Dollar Tree locations to close