Retail openings and closures in 2026 will show significant variation, according to a new report from Telsey Advisory Group. While some sectors face closures, others—particularly in off-price, beauty, and apparel—will see expansion. These shifts reflect broader industry trends as retailers adapt to changing consumer preferences and market dynamics.
Retail Openings and Closures: Key Sectors to Watch
Luxury and department stores will see a net decline in store openings in 2026, continuing a trend of consolidation in these areas. The decline in physical store locations comes as more consumers turn to online shopping. In contrast, home retailers will experience a modest 1.4% growth in store count, reflecting consistent demand for home goods.
The largest increase in retail openings will occur in the off-price, beauty, and apparel sectors. As shoppers prioritize value and variety, these categories are poised for growth. Their expansion contrasts with the struggles of other retail categories, offering a glimpse into the shifting landscape.
Best Buy, Target, and Walmart: Retail Expansion Plans
Best Buy plans to reduce its store count in both 2025 and 2026. Rather than opening new locations, the company is focusing on refreshing its existing stores to improve the shopping experience and enhance its online presence.
On the other hand, Target and Walmart are expected to expand their store networks in the next few years. Both companies are focused on creating comprehensive digital ecosystems and remodeling their stores to capture more consumer spending. This growth reflects their strategy to strengthen both physical and online experiences.
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Retail Bankruptcies: Opportunities for Growth
Retail bankruptcies present both challenges and opportunities. These bankruptcies are opening up prime real estate for competing retailers. Off-price and beauty retailers, in particular, are poised to capitalize on these opportunities. As retailers acquire these locations, they will expand their presence and enter new markets under favorable terms.
In early 2026, Saks Global filed for bankruptcy protection, marking a significant development. Telsey analysts tracked 10 retail-related bankruptcies in 2025, including filings from Claire’s, At Home, and Rite Aid. These bankruptcies leave valuable retail spaces vacant for other companies to pursue, creating more competition in key locations.
The Competitive Retail Space Landscape
Retail bankruptcies have intensified competition for prime retail space. As these vacancies become available, companies with growth strategies will act quickly to secure valuable locations. The demand for retail space has remained high, with limited availability in key areas, making the competition for these locations fierce.
Retailers that successfully adapt to these market conditions—whether through digital tools, real estate acquisitions, or AI-driven strategies—will thrive in the evolving retail landscape.
