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Retail stores have been taking a nose-dive for the past three years, but some are projecting that 2026 will see a small shift towards recovery.
Coresight Research is projecting that 7,900 stores will close this year (a decrease), while 5,500 new stores will open (an increase). But consumers are buckling down to withstand economic downturns, which means examining not only prices but also which business practices they want to support.
Learn which major retailers are betting on growth and expanding, and which stores are shrinking their physical footprint.
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GameStop
Closing: 470
The video game retailer has been less than transparent about closings, but aggregated data in news sources estimate that 296 stores closed in the first week of January, with many more to come throughout the year.
CEO Ryan Cohen has pivoted the company away from video games and toward cryptocurrencies, investing $513 million in Bitcoin in 2025 to attract investor interest. When Cohen took leadership of the company, it was the subject of a meme-stock frenzy driven by gamers, who have largely divested interest as the company moves away from consumer interests in favor of large-scale investors.
Dollar General
Opening: 450
According to Dollar General's third quarter results, net sales increased by nearly 5%, and the company plans to open over 400 new stores. They have an expanding customer base as shoppers look for ways to spend less on necessities, and the dollar store giant expects that trend to continue.
Exact locations of the new stores haven't been released; however, they are looking toward a focus on rural communities.
Francesca's
Closing: 400+
The women's clothing and accessories fashion boutique has filed for Chapter 11 bankruptcy and intends to liquidate, including closing all store locations. Employees report they were laid off without warning, and vendors are claiming hundreds of millions in unpaid invoices. Liquidation sales began in January.
Walgreens
Closing: 350
In 2025, Walgreens shut down around 500 locations, and this year will see a continuation of their larger three-year plan to reduce their footprint by 1,200 stores. The pharmacy chain says these closures are necessary due to low drug reimbursement rates and declining retail sales.
Aldi
Opening: 180
The European-style grocery with its no-frills layout took a while to catch on with Americans, but the low prices and high-quality food have won so many hearts that Aldi is expanding their store footprint this year.
Approximately 180 new locations will be coming to 31 states in 2026, and the company has committed to investing $9 billion in the U.S. over the next two years to scale up operations.
American Signature/Value City Furniture
Closing: 120
The furniture chain filed for Chapter 11 bankruptcy late in 2025 due to declining sales, housing-market weakness, increased operating costs, and other economic factors. Many Value City locations are already in the process of closing, and the retailer operates about 120 stores across 17 states. Nearly all of them will be closing this year, pending bankruptcy proceedings.
Tractor Supply
Opening: 100
Tractor Supply is known for catering to farmers and ranchers, but they've shifted strategy to increase focus on pets and gardening to expand their customer base. They are aggressively expanding, with an estimated 100 new locations in 2026, while also continuing remodels of stores and garden centers.
Carter's
Closing: 61
The popular children's clothing retailer announced at the end of 2025 that they would be closing 150 stores over three years, and roughly 100 of them would be shuttered by 2026. Carter's says the change is needed because of tariffs lowering margins and increasing costs, so shoppers should stock up on OshKosh B'gosh products while they still can.
Barnes & Noble
Opening: 60
Bookworms are rejoicing at the news that Barnes & Noble has returned from the brink of bankruptcy and is now expanding with 60 new locations. What is their winning strategy? Returning control of each store to local booksellers.
In fact, this turnaround strategy has been so successful that Barnes & Noble opened more new stores in 2024 than in the entire decade between 2009 and 2019.
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Target
Opening: 40
In 2025, Target laid off 1,000 corporate employees and halted an additional 800 job listings, but they are planning to open approximately 40 new locations across 22 states this year.
Consumer boycotts against the removal of DEI initiatives throughout last year impacted the department store's bottom line, with third-quarter net sales down 1.5%. There are no definitive dates for grand openings; however, the full list of where these locations will be is available on Target's website.
Bottom line
Businesses need a thriving middle class flush with spending money to be able to operate, and when consumers have to make hard budgeting choices, a lot of stores get left behind. The biggest projected growth is for discount stores, and the increase in farming stores indicates people are worried about food security.
That hard reality leaves expensive frivolities like video games and furniture at a disadvantage, but more worrisome are the increasing pharmacy "deserts" that can leave communities without access to prescription medications. Retailers that want to maintain their customer base need to focus on providing ways for shoppers to save more on everyday essentials, because affordability is at the forefront of the public mind.
More from FinanceBuzz:
- 12 ways to pocket up to $300.
- Are you a homeowner? Get a protection plan on all your appliances.
- 10 little weird hacks Costco shoppers should know.
- Learn how to escape the paycheck-to-paycheck grind.
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