Store closures surged in 2025, with a reported increase of 12% compared to the previous year, yet prospects for the retail sector are showing signs of improvement as 2026 approaches. Deborah Weinswig, the CEO and founder of Coresight Research, expressed optimism for the industry, particularly as grocery retailers are expected to adopt a more aggressive expansion strategy following a period of stagnation due to the pandemic.
Weinswig highlighted that dollar stores are continuing to yield strong returns on investments. Retailers classified as “off-pricers,” such as Burlington, T.J.Maxx, and Ross Dress for Less, are capturing a significant share of the market. Additionally, innovative retail concepts, such as selling shelf space to other brands and monetizing customer data, are positioning retailers to expand their physical presence alongside online growth.
“It’s not necessarily about the size of the box,” Weinswig stated, noting that consumer preferences are evolving. Retailers are exploring various store sizes, from 10,000 square feet for dollar stores to 50,000 square feet for grocery outlets. “The consumer is willing to shop different sizes and drive different distances with gas prices where they are. It’s more about the experience that’s offered. Being in stock is really important.”
In 2025, the number of store openings fell by 11% compared to the previous year. Nonetheless, Coresight Research reports a positive outlook for 2026, tracking 566 planned closures against 1,118 anticipated openings. This shift indicates a potential turnaround for the retail landscape.
Despite the optimism, certain segments of retail could face challenges moving forward. Following the closure of numerous locations, Rite Aid has emerged as a cautionary tale, with Weinswig predicting further pharmacy closures in 2026. She emphasized that the pharmacy format requires significant rethinking as operational costs rise and reliance on lower-margin pharmacy sales increases.
Weinswig pointed out that consumers are becoming more price-sensitive, seeking affordable options for everyday items such as toiletries and snacks. Rite Aid led the year in store closures, shuttering nearly 1,300 locations as part of its bankruptcy proceedings. Other notable closures included retailers such as Joann, Party City, Big Lots, and CVS.
Conversely, Dollar General emerged as a leader in new store openings, launching 611 new locations while closing 271. The company operates more than 20,000 stores across the country. Weinswig highlighted the role of artificial intelligence in enabling retailers like Dollar General to adapt more swiftly to market dynamics. Underperforming locations are being replaced with more successful ones, and AI is assisting in optimizing operational costs.
“We’re starting to see faster decisions getting made in retail,” Weinswig noted. “I think better decisions are being made that are a little more science and a little less art.” Data analytics are enhancing retailers’ operational capabilities, as they also discover ways to monetize their customer data to attract other businesses seeking insights into consumer behavior.
Reflecting on the significant closures this year, Weinswig suggested that some of these outcomes might have been mitigated had new AI tools been adopted earlier. She remarked that companies like Rite Aid and Joann lost discipline around expense management, keeping unprofitable stores open longer than necessary instead of recalibrating their strategies.
“I think it’s truly about discipline,” she explained. “It was more tactical than strategic. Sometimes the tactical can eat your lunch, and in this case, it ultimately did, unfortunately.”
As the retail sector prepares for 2026, the balance between closures and openings will be closely monitored, with a focus on how companies adapt to shifting consumer demands and economic pressures.
