SOUTH CAROLINA - The retail landscape in the Palmetto State is facing a reckoning in 2026. While South Carolina has long been a haven for manufacturing and tourism growth, its retail sector is not immune to the national wave of consolidations and bankruptcies. This year, the impact hits closer to home than ever, with Spartanburg-based icons and national giants alike pulling back their presence.
SOUTH CAROLINA - The retail landscape in the Palmetto State is facing a reckoning in 2026. While South Carolina has long been a haven for manufacturing and tourism growth, its retail sector is not immune to the national wave of consolidations and bankruptcies. This year, the impact hits closer to home than ever, with Spartanburg-based icons and national giants alike pulling back their presence.Denny's Shrinks in Its Home State. The most symbolic blow to South Carolina retail comes from Spartanburg-headquartered Denny's. The diner chain is in the process of shuttering 150 of its lowest-performing locations nationwide by the end of 2026. While the company has not released a public "hit list," the contraction is being felt locally. The closures are part of a broader strategy to boost average unit volumes. Still, for South Carolinians accustomed to seeing the yellow sign at every major exit, the disappearance of these 24-hour staples signals the end of an era.
Pharmacy Deserts Widen. The "drugstore wars" have left casualties across the state. Walgreens is closing 1,200 stores nationwide, a move that is heavily impacting rural and suburban South Carolina. From the Upstate to the Lowcountry, locations with expiring leases are being quietly vacated. CVS is following a similar trajectory, having already reduced its footprint in Columbia and Charleston. The concern for 2026 is the creation of "pharmacy deserts" in rural counties where these chains were often the only healthcare outpost.
Advance Auto Parts Stalls Out. The automotive aftermarket is also tapping the brakes. Advance Auto Parts, a major employer in the region, confirmed plans to close more than 500 corporate stores and end relationships with 200 independent locations by mid-2026. South Carolina, with its high density of auto-centric commuters, is seeing a significant reduction in the number of locations. The company is consolidating its footprint to focus on its most profitable "hub" stores, leaving smaller, neighborhood locations dark.
Macy's: Safe for Now? South Carolina malls breathed a collective sigh of relief this week. While Macy's announced its first 14 closures of 2026—including a nearby location in Raleigh, NC—South Carolina's anchors in Greenville and Columbia were spared from this specific round. However, with nearly 136 more stores slated to close by the end of the year, the State remaining department store anchors are still operating on borrowed time.
A Silver Lining: The Breakfast Pivot. It's not all closures. In an ironic twist, while Denny's closes its core diners, it is aggressively expanding its sister brand, Keke's Breakfast Cafe. The company sees high growth potential in the daytime-eatery concept and plans to open new locations in the Southeast throughout 2026. Additionally, discount retailers like Ollie's Bargain Outlet and Burlington continue to backfill vacant spaces, proving that while traditional retail is dying, the hunt for a bargain is very much alive in South Carolina.
The Outlook 2026 will be a year of transition for South Carolina. The days of oversaturated retail corridors are ending, replaced by a leaner, more efficiency-driven market. For shoppers, this means fewer options and longer drives, but potentially stronger survivors in the long run.
