In a move that has caught the fashion world’s attention, Fossil—headquartered in Richardson, Texas—is preparing to say goodbye to a significant part of its physical presence.
For many shoppers, strolling into a Fossil store has long been a familiar routine. Now, that routine will be disrupted. The company has confirmed plans to close 50 locations nationwide, representing nearly 20% of its global retail footprint. Houston, with prominent outlets at Galleria and Memorial City Mall, is one of the cities likely to feel the greatest impact.
Shortly after this announcement, some consumers began to wonder: Is this the right strategy to keep the brand afloat?
Texas-based Fossil announces closure of 50 stores in various American cities this year
Facing a shifting market and evolving consumer demands, Fossil is taking bold steps to reduce costs, streamline its business model, and adapt to modern preferences. The plan goes beyond shuttering stores—it also includes a notable reduction in corporate staff and a definitive exit from the smartwatch segment, which the company abandoned in early 2024. Below is a quick overview of some key areas expected to see changes or adjustments in store presence:
| Potentially Impacted Region | Notable Locations | Reason for Closure |
|---|---|---|
| Houston, TX | Galleria, Memorial City Mall | Strategic downsizing |
| Dallas–Fort Worth, TX | Several suburban outlets | Reduced foot traffic |
| Los Angeles, CA | Major shopping centers | Shift to digital sales focus |
| Chicago, IL | Select downtown retail sites | Cost-saving and restructuring efforts |
Although not every location is confirmed to close, experts anticipate a noticeable reconfiguration of Fossil’s overall footprint.
How this store closure plan aims to reduce costs and boost profitability nationwide
Beyond the immediate changes in physical shops, Fossil’s roadmap includes several additional measures:
- Corporate workforce reduction: Streamlining departments to cut overhead costs.
- International market redesign: Focusing on regions where brand loyalty remains strongest.
- Investment in creative partnerships: Launching a special Minecraft-inspired collection (watches, wallet, and bracelet) to capture the attention of younger audiences.
- Aggressive financial targets: Aiming to save around USD 100 million this year, compared to 2024, while surpassing USD 800 million in global net sales by 2027.
Who would have thought that a gaming-themed line could become such a key strategy for a classic fashion label?
Steps you should know about Fossil’s bold transformation in the United States
Fossil’s CEO, Franco Fogliato, remains confident that these restructuring actions will drive long-term profitable growth. Under his guidance, the company is blending the expertise of longtime team members with fresh talent, hoping to spark innovation and regain its edge in a competitive landscape.
Despite bidding farewell to some physical stores, Fossil is not abandoning the American market entirely. Instead, it aims to emerge leaner, stronger, and better prepared to meet the needs of today’s consumers. By stepping back from underperforming segments and embracing new partnerships, the famous Texas brand appears determined to reinvent itself for the coming years.