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Fossil Group is preparing to close up to 15 stores by the end of the year, continuing a multi-year effort to reduce its physical retail footprint as the company adapts to changes in consumer shopping behavior.
The Texas-based company, known worldwide for its watches, handbags, wallets, jewelry and leather goods, said the closures will leave it with around 185 stores globally. The decision follows a series of reductions that have already removed more than 100 locations from its network over the past two years.
The latest cuts highlight the pressure facing many traditional mall retailers as customers increasingly shift toward online shopping, direct-to-consumer brands and changing fashion trends. Fossil’s move also reflects a broader transformation affecting retailers that once relied heavily on large networks of physical stores.
Fossil Continues Years-long Retail Reduction Strategy
According to SILive, Fossil announced the upcoming closures during its first quarter earnings call, where executives outlined plans to continue adjusting the company’s store strategy. The retailer closed 54 locations in 2024 and another 49 stores in 2025, creating a significant reduction in its brick-and-mortar presence.
The company’s remaining stores represent a much smaller network compared with previous years, when Fossil operated a larger global retail footprint built around shopping malls and major commercial areas. The brand has been working to balance physical locations with digital sales channels as customer habits continue to evolve.
The closure strategy comes as many specialty retailers reassess the role of physical stores. While locations can still provide brand visibility and direct customer experiences, maintaining large retail networks has become more challenging due to operating costs, changing consumer preferences and competition from online marketplaces.
For Fossil, reducing store numbers allows the company to focus resources on locations that perform better while continuing to develop its online business. The company’s approach reflects a wider shift among retailers that are prioritizing efficiency rather than expansion.
Mall Retailers Face Continued Pressure from Changing Shopping Habits
Fossil’s decision is part of a larger pattern affecting American shopping centers. Several recognizable brands have recently reduced their physical presence or exited the market completely as the retail environment continues to change.
Francesca’s, a women’s fashion retailer known for clothing, accessories and gifts, closed all of its stores in January. The company had built a strong presence in shopping centers across the United States before shutting down its physical locations.
Another familiar name, Claire’s, also experienced major changes. More than 200 Claire’s and Icing locations closed in 2025, reducing the presence of brands that had been a common sight in malls for decades.
Luxury retailer Saks Off Fifth also reduced its store network in January, adding to the list of companies adjusting their physical operations. These changes show how retailers across different price categories are responding to the same market pressures.
The decline of some mall-based chains does not mean physical retail has disappeared. Many companies are instead moving toward smaller store networks, improved online services and more selective locations designed around profitability and customer engagement.
