The retail landscape has faced significant challenges in 2025, marked by a 12% increase in store closures compared to the previous year. Despite this trend, retail expert Deborah Weinswig, CEO and founder of Coresight Research, expresses optimism for the sector as it heads into 2026. Weinswig anticipates a shift in strategy among grocers, who she believes will become more aggressive in their expansion efforts following a period of stagnation caused by the pandemic.
Changing Strategies in Retail
Weinswig highlights that dollar stores are continuing to yield strong returns on their investments. Retailers classified as “off-pricers,” which include brands like Burlington, T.J.Maxx, and Ross Dress for Less, are also capturing considerable market share. She notes that various retail concepts, such as retailers selling shelf space to other brands and monetizing customer data, are positioning themselves to grow their physical presence alongside their online operations in the coming year.
“It’s not necessarily about a size of box, because we’re talking about 10,000 square feet with the dollars and 35,000 square feet with off-price and like 50,000 with the grocery,” Weinswig explained. “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 decreased by 11% compared to the previous year. However, Coresight Research reports a more positive outlook for 2026, with 1,118 planned openings compared to 566 closures tracked so far.
Challenges Ahead for Certain Retail Segments
Despite the overall optimism, Weinswig warns that some areas of retail may continue to face difficulties. Following the closure of numerous locations by Rite Aid this year, she predicts further pharmacy closures in 2026. Weinswig points out that the pharmacy format needs significant adjustments, citing high operating costs and an over-reliance on lower-margin pharmacy sales rather than more profitable consumer products.
“Consumers are more price sensitive,” she noted. “And there are cheaper places to stock up on toiletries and snacks.” This trend contributed to Rite Aid being the leader in store closures, with nearly 1,300 locations shuttered this year alone. Other notable closures included Joann, Party City, Big Lots, Claire’s, Walgreens, 7-Eleven, Forever 21, CVS, and Dollar General.
In contrast, Dollar General stands out with its continued growth, opening 611 new stores while closing only 271. The retailer operates more than 20,000 locations nationwide. Weinswig attributes part of this success to the integration of artificial intelligence, which enhances responsiveness to market dynamics by enabling retailers to replace underperforming locations with more viable options.
“And so, we’re starting to see faster decisions getting made in retail,” she said. “I think better decisions are being made that are a little more science and a little less art.”
Data analytics is empowering retailers to improve their operational strategies, and many are discovering ways to monetize their consumer data. Weinswig believes that some of the major closures this year could have been mitigated if AI tools had been implemented sooner. She noted that companies like Rite Aid, Joann, and Party City lost financial discipline and maintained unprofitable locations longer than necessary.
“I think it’s truly about discipline,” Weinswig emphasized. “It was more tactical than strategic. Sometimes the tactical can eat your lunch, and I think in this case, it ultimately did, unfortunately.”
As the retail sector looks to the future, the balance between adapting to consumer needs and managing operational costs will be crucial for survival and growth.
