On Thursday, Apple Inc. (NASDAQ:AAPL) said it will close three U.S. retail stores as declining mall conditions force a strategic pullback, while a union dispute intensifies around its Towson location.

Apple Blames Declining Mall Conditions

In a statement to MacRumors, Apple said it will permanently shut stores in Trumbull, Connecticut; Escondido, California; and Towson, Maryland, in June.

The company said it regularly evaluates its retail footprint to ensure it delivers the best customer experience.

The closures come as all three malls have lost major tenants and foot traffic, with some facing financial distress and ownership changes.

Apple did not immediately respond to Benzinga’s request for comments.

Employees To Be Relocated Or Reassigned

Apple said staff at its Trumbull and North County locations will transition to nearby stores. Employees at the Towson store will be eligible to apply for other roles under the terms of their union agreement.

Union Pushes Back On Towson Closure

The Towson store holds significance as the first unionized Apple retail location in the U.S., affiliated with the International Association of Machinists and Aerospace Workers.

In a statement to the publication, the union criticized the move, calling it “a cynical attempt" and expressing "outraged" concerns that the closure may be aimed at weakening organized labor.

It said it is exploring legal options.

Closures Not Tied To Financial Weakness

Despite the shutdowns, Apple said that the decision is not linked to its financial performance.

The company, in January, reported first-quarter revenue of $143.76 billion and has opened multiple new stores globally since early 2025, while continuing to upgrade existing locations.

Price Action: Apple closed at $260.49 on Thursday, up 0.61% and slipped 0.38% to $259.50 in pre-market trading on Friday, according to Benzinga Pro.

AAPL holds a Quality score in the 98th percentile in Benzinga Edge rankings, with a negative short and medium-term trend but a positive long-term outlook.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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