3 Retail Giants Leaving Vermont in May 2026

VERMONT - The retail landscape in the Green Mountain State is continuing its quiet but steady transformation. By May 2026, Vermont will see the finalization of several departures as legacy brands struggle with the high overhead of physical locations in rural markets and the shift toward digital-only business models.

Here are the three retail giants exiting Vermont locations this May.

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1. Eddie Bauer

Outdoor apparel pioneer Eddie Bauer is completing its full exit from Vermont brick-and-mortar locations by late May. After the company’s operating entity failed to find a buyer during Chapter 11 bankruptcy proceedings earlier this year, the brand has been liquidating its remaining physical stores.

• The Impact: The closure affects the brand’s presence at the Manchester Designer Outlets in Manchester Center.
• What’s Next: For a state defined by its outdoor culture, the loss of an Eddie Bauer storefront is significant, though the brand will continue to sell gear to Vermonters through its website and wholesale partners.

2. Francesca’s

The boutique-style retailer Francesca’s is in the final days of its total nationwide liquidation. After a second bankruptcy filing in early 2026 proved that its mall-based business model was no longer sustainable, the company announced it would shutter all of its approximately 450 locations.

• The Impact: Vermont is losing its primary location at University Mall in South Burlington.
• The Sale: Clearance sales at the South Burlington store are expected to wrap up by the third week of May, with deep discounts on the last of the store's inventory and fixtures.

3. GameStop

While not exiting the state entirely, GameStop is finishing a massive round of closures that has heavily targeted Vermont’s smaller-market storefronts. As part of a plan to shutter roughly 400 stores nationwide in 2026, the company is prioritizing digital sales and high-traffic "flagship" zones.

• The Impact: Several neighborhood locations—including those in Rutland and smaller shopping centers in the Burlington area—are slated to finalize their closures by the end of May.
• The Strategy: The company is pivoting resources away from physical game discs and toward trading cards, collectibles, and its digital platform, making many of its smaller, high-rent physical spaces redundant.

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Why Vermont?

The May 2026 departures in Vermont reflect a broader trend across New England. High property taxes and a limited population base make it difficult for "generalist" retailers like Francesca’s or Eddie Bauer to compete with the convenience of online shopping.

Furthermore, many of these closures coincide with the expiration of multi-year leases signed during the post-pandemic retail boom. For Vermonters, these exits likely mean longer drives to regional shopping hubs or an increased reliance on digital storefronts, as the state’s commercial real estate begins to pivot toward more "essential" services like healthcare and local groceries.

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