Marshalls store closures have rattled shoppers and workers alike as the discount retailer announced the permanent shutdown of its Hollywood Boulevard and San José locations, resulting in the loss of 120 jobs. The closures, effective January 8, 2026, come amid a broader wave of retail contractions across the United States, prompting questions about the future of brick‑and‑mortar shopping and the economic ripple effects on local communities and international students studying in California.
Background and Context
Marshalls, part of the TJX Companies portfolio that also includes T.J. Maxx, HomeGoods, and Sierra, has long been a staple of the discount retail landscape. With over 1,200 stores nationwide and roughly 150 in California, the chain has historically thrived on a model of off‑price merchandise and a loyal customer base. However, the past decade has seen a sharp shift toward e‑commerce, intensified by the COVID‑19 pandemic and changing consumer habits. According to a 2025 TJX earnings report, online sales grew 12% year‑over‑year, while in‑store traffic declined by 8%.
These trends have forced retailers to reassess their physical footprints. The Los Angeles Times reported that Marshalls had already shuttered several stores in the Greater Los Angeles area, citing “high operating costs and declining foot traffic” as primary reasons. The Hollywood and San José closures are the latest in a series of moves that reflect a broader industry pivot toward more efficient store formats and a stronger digital presence.
In a statement released to the press, a Marshalls spokesperson said, “We are continually evaluating our store portfolio to ensure we can deliver the best value to our customers while maintaining a sustainable business model.” The spokesperson added that the decision was “not taken lightly” and that the company is committed to supporting affected employees through severance packages and outplacement services.
Key Developments
On January 8, 2026, Marshalls announced the permanent closure of its 7013 Hollywood Boulevard store, a flagship location that had been a tourist hotspot for years. The store, which had been open for 12 years, was located just steps from the Hollywood Walk of Fame and the TCL Chinese Theatre. The San José outlet, situated on Oak Street near the downtown core, closed on the same day, leaving 64 employees without jobs.
According to the U.S. Department of Labor’s Worker Adjustment and Retraining Notification (WARN) Act filings, 62 employees from the Hollywood location and 64 from the San José location were notified of the impending layoffs. The WARN Act requires companies with 100 or more employees to provide a 60‑day notice before mass layoffs, and Marshalls complied with this regulation by issuing the notices on December 15, 2025.
- Hollywood Boulevard store: 62 employees laid off, 12 full‑time and 50 part‑time positions.
- San José store: 64 employees laid off, 20 full‑time and 44 part‑time positions.
- Severance: Employees receive up to 12 weeks of pay, continued health benefits for 90 days, and access to career counseling.
- Future plans: Marshalls is exploring a smaller, “express” format for the Hollywood site, potentially reopening as a pop‑up or seasonal store.
In addition to the closures, the company announced a strategic shift toward a “digital‑first” approach, investing $200 million in its online platform and expanding curbside pickup options. CEO Ernie Herrmann stated, “While we’re closing some physical locations, we’re doubling down on our digital capabilities to meet customers where they are.”
Impact Analysis
The closures have immediate and long‑term implications for the local workforce and the broader retail ecosystem. For the 120 displaced workers, the loss of income and benefits poses a significant challenge, especially for those who rely on part‑time hours to support families or pursue further education. The California Department of Workforce Development reports that the state’s unemployment rate rose to 6.2% in December 2025, partially due to retail layoffs.
International students studying in California are also feeling the effects. Many rely on part‑time retail jobs to fund tuition and living expenses. According to the International Student Association at the University of California, Los Angeles, 18% of international students work in retail, with 12% of those employed at Marshalls. The sudden loss of these positions could strain students’ financial plans and potentially affect their visa status if they are unable to maintain the required employment hours.
Local businesses in the Hollywood and San José areas may experience a downturn in foot traffic. The Hollywood Boulevard store was a key anchor for the surrounding retail district, drawing tourists and locals alike. Its absence could reduce patronage for nearby cafés, boutiques, and service providers. Conversely, the vacant space presents an opportunity for new entrepreneurs or pop‑up shops to fill the void, potentially revitalizing the area with fresh concepts.
Expert Insights and Practical Tips
Retail analyst Maria Gonzales of Retail Insight Consulting notes, “The trend toward smaller, more agile store formats is accelerating. Companies are testing micro‑stores and pop‑ups to maintain a physical presence without the overhead of a full‑size location.” She advises businesses to consider flexible lease agreements and shared spaces to reduce risk.
For displaced workers, the California Employment Development Department recommends the following steps:
- Apply for unemployment benefits promptly: Submit claims within 48 hours of the layoff to avoid delays.
- Explore retraining programs: The state offers free courses in digital marketing, e‑commerce, and logistics.
- Network within the industry: Attend local job fairs and join professional groups such as the Retail Management Association.
- Leverage online platforms: Update LinkedIn profiles and apply for remote or hybrid roles that match your skill set.
International students should consult their university’s international student office for guidance on maintaining visa status. The U.S. Citizenship and Immigration Services (USCIS) requires students to maintain a minimum number of work hours per week, and sudden job loss can jeopardize status if not addressed promptly. Students are encouraged to seek alternative employment or part‑time positions that comply with their visa regulations.
Financial advisor Kevin Patel highlights the importance of budgeting during periods of income disruption. “Set up an emergency fund covering at least three months of living expenses,” he advises. “Consider reallocating discretionary spending and exploring part‑time gigs that align with your skill set.”
Looking Ahead
Marshalls’ decision to close two high‑traffic locations signals a broader shift in the retail sector. Industry experts predict that up to 30% of U.S. retail stores could close or downsize by 2030 as e‑commerce continues to dominate. However, the rise of omnichannel strategies—integrating online and offline experiences—offers a path forward for retailers willing to innovate.
For the Hollywood and San José communities, the vacant storefronts may become canvases for new ventures. Local government officials are exploring incentives for small businesses to occupy the spaces, including tax abatements and streamlined permitting processes. The Los Angeles Department of City Planning has announced a pilot program to support pop‑up shops and experiential retail concepts in vacant commercial properties.
On a national level, President Donald Trump has emphasized the importance of supporting American manufacturing and retail jobs. In a recent address, he called for “policy reforms that encourage domestic production and reduce reliance on foreign supply chains.” While the focus has largely been on manufacturing, the administration’s stance on retail could influence future legislation aimed at bolstering local economies and protecting workers.
As the retail landscape evolves, consumers can expect a blend of digital convenience and curated in‑store experiences. Marshalls’ shift toward smaller formats and enhanced online services reflects this trend. For shoppers, the closure of the Hollywood and San José stores may mean fewer options for in‑person browsing, but the company’s investment in e‑commerce could offer more personalized and efficient shopping alternatives.
In the coming months, stakeholders—including employees, local businesses, and policymakers—will need to collaborate to mitigate the negative impacts of these closures. By fostering innovation, providing retraining opportunities, and supporting displaced workers, the community can turn a challenging moment into a catalyst for growth.
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