The retail landscape in the Heart of Dixie is seeing a mix of transformation and contraction in 2026. While Alabama has avoided the worst of the department store closures hitting other Southern states, it is facing a significant correction in the discount and pharmacy sectors. From the final redevelopment of a Birmingham landmark to the “optimization” of state-run liquor stores, the map is being redrawn.
Here is the definitive guide to the major store closures confirmed for Alabama in 2026.
1. The Mall Redevelopment: Brookwood Village
The Headline: The “Zombie Mall” finally gets a new life. Location: Homewood/Mountain Brook.
The biggest retail story of 2026 isn’t a simple closure—it’s a resurrection. After sitting largely vacant for years, the Brookwood Village site is officially transitioning away from its life as a shopping mall.
- The Project: A partnership between the cities of Homewood and Mountain Brook has cleared the way for a massive redevelopment. The most notable tenant moving in is Andrews Sports Medicine, which plans to repurpose the former Belk anchor space into a world-class orthopedic center.
- The Impact: For local shoppers, this marks the final end of Brookwood as a retail destination. Demolition and renovation crews are active in 2026 to transform the concrete box into a mixed-use medical and lifestyle campus.
2. The Discount Exodus: Big Lots
The Headline: A massive retreat from the Wiregrass and Central Alabama. Locations: Bessemer, Huntsville, Prattville, Troy, and Dothan (Lease Reviews).
Alabama is bearing the brunt of the Big Lots bankruptcy restructuring. The chain has identified numerous locations across the state for closure or lease auctions in 2026.
- The Spread: The closures are hitting diverse markets. From the University Drive corridor in Huntsville to Cobbs Ford Road in Prattville, familiar storefronts are going dark.
- The Status: Leases for stores in Andalusia, Auburn, Foley, and Rainbow City have also been flagged for potential sale. If you see a “Store Closing” banner at your local branch, expect a rapid liquidation timeline of 8-10 weeks.
3. The Pharmacy Loss: Walgreens
The Headline: Small towns lose their corner drugstore. Location Closing: Jackson (College Ave) and statewide consolidation.
Walgreens is executing a plan to close 1,200 stores nationwide, and Alabama’s rural and suburban communities are feeling the impact.
- The Details: The location in Jackson (Clarke County) has been confirmed for closure, a significant blow to a community with limited pharmacy options.
- The Trend: Residents in Mobile and Birmingham should also watch for consolidations where Walgreens locations are situated too close together. The company is prioritizing stores with higher foot traffic and lower theft rates, often leaving older standalone units behind.
4. The State Shakeup: ABC Board Stores
The Headline: Closures for a cause (Remodeling). Locations: Pike Road, Chelsea, Mobile, Centre, Anniston.
Unlike private retailers closing for bankruptcy, the Alabama ABC Board is closing several stores in 2026 for major renovations and relocations.
- The Schedule:
- Pike Road & Chelsea: Temporary closures in early 2026 for modernization.
- Mobile: Store 182 is scheduled for a temporary closure through March 2026.
- Montgomery: Store 12 is closing to relocate permanently in late March.
- What to know: If your local ABC store is dark, check the door. It is likely a temporary remodel rather than a permanent exit, with plans to reopen with expanded selection later in the year.
5. The “Survivor” Update: Macy’s
The Headline: Riverchase and The Summit are safe. Status: No AL closures in the Jan 2026 list.
Alabama shoppers can breathe a sigh of relief. Macy’s released its list of 14 store closures for early 2026, and unlike neighboring Georgia (which is losing a major Atlanta store), Alabama was not on the list.
- The Context: This suggests that the Macy’s anchors at the Riverchase Galleria (Hoover) and The Summit (Birmingham) remain strong performers. These locations are considered “Go-Forward” stores, meaning they will likely see investment and upgrades rather than closure.
Summary of 2026 Closures
| Retailer | Location(s) | Impact | Status |
| Brookwood Village | Homewood | Redevelopment/Medical | Active Construction |
| Big Lots | Huntsville, Prattville, Troy | Bankruptcy Exit | Liquidation |
| Walgreens | Jackson, Statewide | Pharmacy Loss | Closing 2026 |
| ABC Board | Mobile, Chelsea, Pike Road | Remodels | Temporary Closures |
| Macy’s | Statewide | Safe (No closures) | Survivors |
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