DELAWARE - The "retail winter" is sweeping through the First State. February 2026 brings a wave of closures that spans from the busy corridors of New Castle County to the beach towns of Sussex, impacting everything from major mall staples to essential neighborhood pharmacies.
Here are the five major retail chains shrinking their Delaware footprint in February.
1. Big Lots
The Headline: A favorite bargain-hunter's destination is in Milford.
Following its bankruptcy restructuring, Big Lots is conducting a final "clean sweep" of its most troubled locations in 2026. While the chain has struggled nationally, the impact is now hitting the Sussex/Kent County border.
- Location Closing: The Milford store has been marked for closure, with aggressive liquidation sales currently clearing out inventory.
- The Impact: This leaves a significant vacancy in the Milford shopping landscape, forcing residents to look elsewhere for the discounted furniture and pantry staples the chain was known for. It marks the brand's continued retreat from the Delmarva Peninsula.
2. Rite Aid
The Headline: The wind-down hits the beach towns hard.
The most widespread closures in Delaware for 2026 involve Rite Aid. The Philadelphia-based pharmacy chain is in the final stages of its massive post-bankruptcy retail reduction, and February brings the end of the line for several key locations.
- Affected Areas: The beach communities are feeling the brunt of this, with confirmed closures on Savannah Road in Lewes and the Rehoboth Mall Boulevard location.
- The Trend: These closures are creating "pharmacy deserts" in some coastal neighborhoods, forcing longtime customers to transfer prescriptions to competitors like CVS or Giant, often located in much busier areas.
3. Yankee Candle
The Headline: The Dover Mall loses a fragrant staple.
While the Dover Mall fights to keep its major anchors, 2026 has seen a quiet but steady exodus of the "inline" stores (the smaller shops inside the mall corridors). February marks the departure of a long-time gift staple.
- The Closure: Yankee Candle is shuttering its Dover Mall location as part of a parent company plan to reduce its brick-and-mortar footprint nationwide.
- The Vibe: This exit leaves another empty storefront in the capital's primary mall, continuing a trend of specialty retailers pivoting to e-commerce and labandoningtraditional malls
4. Family Dollar
The Headline: Route 13 loses convenience spots.
Family Dollar is in the middle of a massive nationwide closure of nearly 1,000 stores, specifically targeting locations where inflation and theft have eroded profits. Delaware, with its high density of dollar stores, is seeing a significant correction.
- Locations to Watch: Watch for final days at older Family Dollar locations along the Route 13 (DuPont Highway) corridor and in Wilmington neighborhoods.
- The Strategy: The company is closing stores that are effectively "cannibalizing" each other (stores located too close together) or that are facing high operational costs, and consolidating business into their newer "Combo" stores.
5. Advance Auto Parts
The Headline: Pumping the brakes on retail expansion.
A major newcomer to the closure list in 2026 is Advance Auto Parts. The company has announced a plan to shutter over 500 locations nationwide to stabilize its finances, and Delaware is seeing the effects this month.
- The Pivot: Several underperforming locations are on the chopping block. The company is shifting focus away from DIY retail and toward its "Pro" business (selling directly to mechanics).
- The Reality: For the casual car owner, this means your local neighborhood parts store may be consolidated into a nearby "hub" location, reducing the number of convenient spots to grab a quick battery or wiper blade.
February 2026 serves as a harsh reality check for Delaware's retail sector. The closures are hitting two distinct areas hardest: the Dover Mall, which loses a longtime tenant in Yankee Candle, and the Beach communities (Lewes/Rehoboth), which are losing essential pharmacy services with Rite Aid's retreat. Meanwhile, BigLots' exit from Milford and FamilyDollar's consolidation along Route 13 highlight a broader national trend in which discount retailers are pulling back from saturated markets to survive. Shoppers across the state—from the beaches to the PA line—will see fewer options and more "Store Closing" banners this month.
