Longstanding fashion retailer to close 120 stores by end of 2026 - USA Today

Longstanding clothing chain Cato Fashions is closing more locations, bringing the company’s total closures over the last year to 120.

The Cato Corporation announced the closures in a news release on Friday, Sept. 18. The Charlotte, North Carolina-based company said it plans to close more underperforming stores in the third and fourth quarters of 2026.

Earlier this year, the brand told federal officials and said in a a newsrelease that it would open 10 stores and close 40 to 50 locations in 2026. The number of closures has since risen to 120.

John Cato, Cato’s chairman, president and CEO, said in the release that the company conducts an annual review of one-third of its stores to decide whether to renew profitable locations or terminate their leases.

“In years past, marginal stores were renewed for an additional year to give the store more time to improve its sales trend and profitability," Cato said in a statement. “In light of the current economic environment, especially with the negative pressure on our customers' discretionary income, we do not expect these marginal stores to improve appreciably.”

USA TODAY contacted the Cato Corporation on Oct. 1 for additional information, including how the closures will affect employees.

Cato Fashions started as a family-owned clothing company in 1946 in Sumter, South Carolina. The company offers women's clothing in person and online and touts its options from sizes 2 to 28.

"Style should never be limited by size," the company's website says. "Our promise is simple: fashion that fits your life, your budget and your unique style.

During 2025, Cato closed 48 stores. The company began the new year with 1,069 stores in 31 states, but by August 2026 it had closed a dozen locations.

Regarding the upcoming closures, the company said it will cost between $1 million and $1.3 million, mainly because it must throw away external signage and fixtures and return store systems to corporate offices. 

As of Oct. 1, Cato Fashions has 850 stores. States with the largest number of stores include Texas (140), North Carolina (81) and Georgia (67).

Saleen Martin is a reporter on USA TODAY’s trending team. She is from Norfolk, Virginia – the 757. Email her at sdmartin@usatoday.com.