US Retail: Store Openings to Outpace Closures in 2026, Led by Value Retailers

The U.S. Retail landscape is undergoing a shift, with store openings projected to outpace closures in 2026. This marks a potential turning point after several years of net retail decline, driven largely by the success of value-focused retailers as consumers navigate ongoing economic pressures.

A Shift in the Retail Landscape

Coresight Research projects approximately 5,500 new store openings across the U.S. In 2026, a 4.4% increase compared to the previous year. Simultaneously, they anticipate around 7,900 store closures, representing a 4.5% year-over-year decrease and the lowest number in the past three years. This suggests a stabilization, though not a complete reversal, of the retail contraction seen in recent times.

Did You Know? Last year, a total of 8,270 stores closed, a decrease from 8,825 in 2024 and 9,700 in 2020.

Dollar General, Aldi, and Tractor Supply are leading the expansion, according to Coresight, while GameStop, Francesca’s, and Walgreens are planning the most significant number of store closures. This divergence highlights a clear trend: consumers are increasingly drawn to value retailers, while other segments struggle to adapt.

Economic Factors and Retail Strategy

John Mercer, head of global research at Coresight, anticipates that factors like high inflation and a sluggish housing market will gradually ease in the coming year. However, he emphasizes that the shift in retail real estate plans represents only an “incremental improvement,” not a dramatic change. Retailers are responding to these conditions by adjusting their strategies, with some slimming down their footprints and others aggressively expanding.

Department stores and legacy retailers are continuing to reduce their store counts. Conversely, value players – including discounters, warehouse clubs, and off-price chains – are expanding their national presence. Successful retailers like Abercrombie & Fitch and Gap are also gaining ground, often at the expense of smaller specialty apparel stores.

Expert Insight: The data suggests a bifurcated retail market, where consumers are prioritizing value and convenience, while retailers are adapting by either consolidating or expanding based on their target demographic and business model.

Recent Retail Developments

Early 2026 has already seen significant store closure announcements. GameStop is planning to shutter hundreds of locations, building on previous closures. Francesca’s is liquidating its nearly 460 stores after filing for bankruptcy. Amazon is also closing all Amazon Fresh and Amazon Go locations, converting some into Whole Foods Market stores, effectively ending that particular experiment in the grocery sector.

Last year, 32 retailers filed for bankruptcy, contributing to the overall downsizing. Rite Aid, Joann, Party City, and Big Lots were among those with the most store closures. Walgreens and CVS Health also reduced their store footprints.

The Future of Retail Real Estate

A potential slowdown in bankruptcies could tighten the supply of retail real estate, according to Naveen Jaggi, president of retail advisory services for JLL. Many of the current store openings were planned in 2024, when a significant amount of space became available due to closures from companies like Bed Bath & Beyond, Joann, and Forever 21.

Construction of new strip malls has been slow due to higher labor costs and interest rates. This could change if those costs stabilize and retailers are willing to invest in new builds. Competition for space is also increasing, with retailers vying for locations alongside expanding food and beverage concepts and fitness studios.

The rise of artificial intelligence chatbots is also prompting retailers to rethink the role of brick-and-mortar stores. To remain relevant, stores need to offer convenience, immediacy, competitive discounts, or a unique in-person experience.

Frequently Asked Questions

What is driving the increase in store openings?

Value retailers like Dollar General and Aldi are expanding their footprints as consumers seek more affordable options, according to Coresight Research.

Which retailers are closing the most stores?

GameStop, Francesca’s, and Walgreens are currently planning the most store closures, as reported by Coresight.

What impact are economic factors having on the retail industry?

High inflation and a slow housing market are influencing retailers’ real estate plans, though Coresight expects these factors to gradually ease in the coming year.

As the retail landscape continues to evolve, will the focus on value and experience be enough to sustain brick-and-mortar stores in the long term?