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Cato Fashions to close 120 stores by end of 2026
USA Today • • business
Key Points:
- Cato Fashions is closing a total of 120 stores over the last year, with more closures planned in the third and fourth quarters of 2026 due to underperformance and economic pressures on customers' discretionary income.
- The company, based in Charlotte, North Carolina, began 2026 with 1,069 stores but has reduced to 850 stores as of October 1, with major locations in Texas, North Carolina, and Georgia.
- Store closures are expected to cost between $1 million and $1.3 million, primarily due to expenses related to removing signage, fixtures, and returning store systems to corporate offices.
- Cato Fashions conducts annual reviews of one-third of its stores to decide on lease renewals, and in the current economic climate, marginal stores are unlikely to see improvements, prompting more closures.
- Founded in 1946, Cato offers women's clothing in sizes 2 to 28 both in-store and online, emphasizing affordable fashion that fits a wide range of sizes and styles.
