Business

Apple announces store closures as mall performance stumbles

Just months after temporarily shuttering all its retail stores in the United Arab Emirates amid escalating geopolitical tensions, Apple is making another significant adjustment to its retail footprint, this time in the U.S.

The technology giant has confirmed plans to permanently close three Apple Store locations in three states later this month. While the closures affect only a fraction of Apple's nationwide retail network, they arrive at a time when retailers have been increasingly reassessing the long-term viability of mall-based footprints.

The decision also underscores a broader shift across the retail industry. As consumer shopping habits evolve and competition intensifies, companies are placing greater emphasis on high-performing stores while reducing exposure to locations that generate less traffic and fewer sales opportunities.

For Apple, the move appears less about scaling back its physical presence and more about refining where it invests for future growth.

Apple confirms 3 store closures across 3 states

Apple Inc. (AAPL) revealed that three mall-based retail locations will permanently close on June 20, 2026, at their respective malls' closing times, according to notices published on the company's website.

The affected Apple stores include:

"At Apple, we are constantly striving to deliver exceptional service and great experiences for our customers," said an Apple spokesperson in a statement reported by MacRumors.

"As we continue investing to expand and enhance our retail stores and offerings worldwide, we remain deliberate about evaluating our existing locations to ensure that we can meet our customers' needs in the best way."

Apple said employees at the Trumbull and North County stores will have opportunities to continue working at nearby Apple locations. Workers at the Towson Town Center store will be eligible to apply for other open positions within the company under the terms of the location's collective bargaining agreement.

The Towson Town Center store closure has drawn particular attention because it was the first Apple Store in the U.S. to unionize in 2022.

In April, the International Association of Machinists and Aerospace Workers (IAM), which represents the workers at the location, filed a complaint with the National Labor Relations Board alleging Apple engaged in discriminatory practices and attempted to discourage employees from exercising their labor rights.

Apple has disputed those claims. According to Reuters, the company said it intends to fully comply with its labor agreement and provide affected employees with the benefits and protections outlined in the contract.

Why Apple is closing these stores

Although Apple has not explicitly linked the closures to mall performance, all three stores are located within shopping centers that have faced significant economic and operational challenges in recent years.

Earlier this year, several apparel retailers announced departures from Towson Town Center. In March, the owner of Trumbull Mall defaulted on a $150 million loan, prompting the sale of the property. Meanwhile, Mershops North County Mall changed ownership in 2023 amid declining conditions.

Here's some of my previous coverage of Apple:

While Apple remains one of the strongest retail brands in the world, the company has increasingly focused on ensuring its stores are located in areas that can sustain consistent traffic and support premium customer experiences.

Retail analysts have long noted that one of the industry's most pressing challenges is the decline in the quality of the in-store customer experience.

According to Forrester, many retailers have struggled to adapt their physical environments to meet rising consumer expectations, particularly as shoppers grow accustomed to the convenience, personalization, and seamless experiences offered through digital channels.

As a result, underperforming malls can become less attractive locations even for highly successful retailers such as Apple.

The closures also reflect a broader strategy across the retail industry consisting of consolidating operations in stronger markets while directing investments toward locations with greater long-term growth potential.

 Apple is closing stores in shopping centers that have faced recent economic challenges.
Apple is closing stores in shopping centers that have faced recent economic challenges.

Michael Nagle/Bloomberg via Getty Images

America's mall industry continues to evolve

The challenges facing shopping malls began long before the Covid pandemic.

For decades, mall operators have navigated changing consumer preferences, the rapid rise of e-commerce, and growing competition from discount chains, warehouse clubs, and direct-to-consumer brands.

According to Capital One Shopping Research, the U.S. had approximately 1,200 malls as of 2023. The research projects that the number could fall to around 900 by 2028, with an average of 40 malls closing annually between 2017 and 2022.

At the same time, not all malls are struggling.

Recent data from Placer.ai's The Mall Index suggests some shopping centers are successfully adapting to changing consumer behavior.

In 2025, visits to indoor malls increased 1.3% year over year, while visits to outdoor shopping centers climbed 0.6%

According to Shira Petrack, Placer.ai's head of content with a focus on Retail and Real Estate, malls continue to attract affluent and suburban consumers, particularly those seeking experiences beyond traditional shopping.

"Indoor malls and open-air centers attract a disproportionate share of ultra-wealthy and affluent suburban households, underscoring malls' ongoing relevance for consumers seeking family-friendly activities and experiences," said Petrack.

However, consumer behavior has become increasingly fragmented.

More than 70% of mall visitors also shop at big-box retailers such as Walmart and Target, according to Placer.ai. The trend highlights how malls are no longer the primary shopping destination they once were, but instead function as part of a broader retail ecosystem where consumers move between multiple formats and channels.

To remain competitive, many high-performing malls are shifting away from a traditional retail-first model and investing more heavily in restaurants, entertainment venues, fitness concepts, health care services, and other experiential offerings that cannot be easily replicated online.

Apple keeps growing, despite store closures

Despite the closures, Apple continues to operate more than 270 stores in the U.S. across 42 states and remains one of the most profitable retailers in the world.

During the second quarter of fiscal 2026, the company reported net sales of $111.2 billion, up 17% year over year.

Revenue increased across every geographic segment, with the Americas remaining Apple's largest market. Sales in the region climbed nearly 11.6% to $45.1 billion.

Apple has also continued expanding its domestic footprint.

In 2025, the company revealed plans to invest more than $500 billion in the U.S. over the next four years, according to a company announcement. The initiative includes a new advanced manufacturing facility in Houston, a manufacturing training academy in Michigan, and expanded research and development investments to support emerging technologies and advanced manufacturing.

In that context, the closure of three mall-based stores represents a relatively small adjustment within a much larger growth strategy.

Rather than signaling a retreat from physical retail, the move reflects how even the world's most successful retailers are becoming increasingly selective about where they operate.

As the retail landscape continues to evolve, companies such as Apple are focusing their investments on locations, markets, and store formats best positioned to support long-term growth.

Related: Apple closes all stores in fast-growing market

The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.

This story was originally published June 9, 2026 at 9:33 AM.

Get unlimited digital access
#ReadLocal

Try 1 month for $1

CLAIM OFFER