The retail landscape is set to undergo some significant changes in 2026, with a shift in store openings and closures that could shape the industry. The battle for retail dominance is heating up, and some unexpected players are emerging as winners.
According to Coresight Research, value retailers are leading the charge, attracting more consumers and planning an impressive number of new store openings. Dollar General, Aldi, and Tractor Supply are at the forefront of this growth strategy, with Coresight predicting a 4.4% increase in new store openings across the U.S. this year.
But here's where it gets controversial: while some retailers are expanding, others are facing significant challenges. GameStop, Francesca's, and Walgreens are among those planning the most store closures in 2026. These closures are part of a broader trend, with department stores and legacy retailers downsizing their physical presence. It's a tough time for certain sectors, but it's also an opportunity for others to thrive.
And this is the part most people miss: the retail industry is evolving, and successful mall retailers are adapting and reinventing themselves. Take Abercrombie & Fitch and Gap, for example, they're squeezing out smaller specialty apparel retailers and solidifying their position in the market. It's a prime example of how adaptability can pay off.
The first few weeks of 2026 have already seen some major store closure announcements. GameStop, a video game retailer, plans to close hundreds of locations, continuing a wave of closures. Francesca's, a women's fashion chain, is also shutting down its nearly 460 stores as the company liquidates after bankruptcy. Even Amazon, the e-commerce giant, is shuttering its Amazon Fresh and Amazon Go locations, marking the end of its latest grocery industry experiment.
Last year, store closures were expected to reach record highs since the Covid pandemic, but the final tally surprised many. With 8,270 closures, it was lower than expected, down from previous years. This unexpected development highlights the resilience of certain sectors and the ability of some retailers to adapt and thrive.
One of the key factors influencing this shift is the economic landscape. High inflation and a slow housing market are expected to ease gradually, according to John Mercer, head of global research at Coresight. He believes that while there's an improvement over 2025, it's not a dramatic turnaround.
Affluent Americans, with their strong stock market gains and rising property values, have been a driving force in the retail industry. They've kept spending, propping up the sector and showcasing the so-called K-shaped economy. It's a reminder that economic trends can have a significant impact on retail strategies.
Retail bankruptcies also played a role in last year's downsizing, with 32 retailers filing for bankruptcy. Rite Aid, Joann, Party City, and Big Lots were among the most affected, with numerous store closures. Other drugstores, like Walgreens and CVS Health, also contributed to the closures by shrinking their store footprints.
Looking ahead, the real estate supply for retailers is expected to tighten. Naveen Jaggi, president of retail advisory services for JLL, predicts that a slowdown in bankruptcies could reduce the amount of available space. Many of the retailers opening stores in 2026 secured their real estate deals back in 2024, when a large amount of space opened up due to bankruptcies.
"We're looking at a world of dwindling supply," Jaggi said. "It's going to become a challenge in the coming years."
Similar to the housing market, the construction of new strip malls has been sluggish due to higher labor and interest rates. However, if these costs stabilize and retailers show a willingness to fund new builds, developers may start breaking ground again.
Retailers aren't just competing with their peers for space; they're also vying for square footage with expanding food and beverage concepts and fitness chains. Shopping centers are bringing in national brands like Soulcycle to enhance their offerings and attract customers.
As retailers navigate these changes, they're also facing the challenge of keeping up with customer expectations. With the rise of AI chatbots like ChatGPT and Gemini, customers are using these tools to discover merchandise and seek shopping advice. Retailers must now think creatively about what they can offer in-store to compete with these digital assistants.
According to Coresight's Mercer, brick-and-mortar stores need to provide convenience, immediacy, and ease of pickup or returns. They must offer compelling discounts or become experiential destinations to justify the in-person retail experience.
"Stores are great brand builders," Mercer said. "They allow for comparison shopping and add value to the brand, helping retailers stand out in a competitive market."
The retail industry is evolving, and it's an exciting time for those willing to adapt and innovate. What do you think? Will these trends continue, and how will retailers respond to the changing landscape? Share your thoughts in the comments!
