Cato Corp. to Close 120 Stores by End of 2026, Citing Weak Discretionary Demand

The Cato Corporation (NYSE: CATO) will close 120 underperforming stores by the end of 2026, up sharply from the 40 to 50 closures the Charlotte, North Carolina-based retailer initially projected for the year, according to a Sept. 18 company release. The women's apparel chain ended 2025 with 1,069 stores across 31 states after closing 48 locations, but operated 850 stores as of Oct. 1, 2026. The company said the additional closures will cost $1 million to $1.3 million, mainly for signage and fixture disposal and returning store systems to corporate offices. Chairman, President and CEO John Cato said annual lease reviews of roughly one-third of the chain's stores found marginal locations are unlikely to improve. "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," he said. Texas (140), North Carolina (81) and Georgia (67) hold the most locations.