Retail is dying. Or at least, that’s what we've been told for a decade. People say the internet killed the mall, Jeff Bezos took the crown, and the physical storefront is basically a dinosaur waiting for a meteor. But if you actually look at the data—and your local street corner—the reality is weirdly different. Retailers aren't just surviving; they're expanding.
It's a paradox.
We’re seeing a massive wave of stores that are opening across the United States, from high-end boutiques to discount giants. In 2024 and 2025, the number of store openings actually outpaced closures for many major sectors. It turns out, humans still like touching things before they buy them. Who knew? Actually, the data knew. According to recent retail tracking from Coresight Research, major players like Dollar General, Five Below, and even luxury brands are doubling down on physical footprints. It’s not just a fluke. It's a calculated bet on the fact that "digital native" brands are finding out that Facebook ads are expensive, but a physical storefront is a permanent billboard.
The Big Players Leading the Charge for Stores That Are Opening
If you’ve been to a suburban strip mall lately, you’ve seen it.
Dollar General is the undisputed heavyweight champion here. They aren't just opening a few shops; they are essentially carpet-bombing the rural and suburban landscape. We are talking about nearly 800 new locations in a single fiscal year. Why? Because their core customer needs convenience and low price points that don't always translate well to the high shipping costs of e-commerce. It’s basic math. If you need a gallon of milk and some dish soap right now, you aren't waiting for a two-day delivery.
Then there’s Five Below. They’ve gone on an absolute tear. They are targeting a younger demographic—Gen Z and Gen Alpha—who view shopping as a social activity, not just a transaction. They plan to reach 3,500 stores by 2030. That’s an aggressive timeline. It shows a level of confidence in the physical "treasure hunt" experience that an algorithm just can't replicate. You go in for a $5 phone case and leave with $40 of stuff you didn't know existed.
Target and the "Large Format" Comeback
Target is doing something interesting too. While they experimented with "small-format" stores in cities for a while, they recently pivoted back. They’ve announced plans to build more than 300 new stores over the next decade, many of them being large-scale hubs. These aren't just places to buy socks. They are sophisticated fulfillment centers. When you "Buy Online, Pick Up In Store" (BOPIS), you are participating in the new retail ecosystem. The store is the warehouse. This hybrid model is exactly why we see more stores that are opening despite the rise of Amazon. It’s cheaper for Target if you drive to them than if they pay a carrier to drive to you.
The "Halo Effect" of Physical Locations
Most people get this wrong: they think a store’s success is only measured by the sales made at the cash register.
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Wrong.
There’s a concept called the "Halo Effect." When a brand opens a physical store in a specific zip code, their online traffic from that same zip code usually spikes. The store acts as a massive, 3D advertisement. I’ve seen this personally with brands like Warby Parker and Allbirds. They started online, realized they hit a ceiling, and then started opening physical doors. According to the International Council of Shopping Centers (ICSC), opening a new physical store leads to an average 37% increase in overall web traffic for that brand in the surrounding area.
It’s about trust. If you see a storefront every day on your way to work, you’re more likely to trust that brand when you’re scrolling through your phone at midnight. The store provides a "safety net" for the consumer. If the shoes don't fit, you know exactly where to take them back. That peace of mind is worth more than any "free shipping" promo code.
Why Luxury and Discount Are Winning (And the Middle Is Dying)
Retail is currently a "barbell."
On one end, you have the extreme discounters. TJ Maxx (TJX Companies), Marshalls, and Ross Stores are thriving. They are opening hundreds of locations because they offer a "hunt" that is impossible to do online. You can't "scroll" through a rack of one-off designer finds at a 60% discount the same way you can in person.
On the other end, you have luxury. LVMH and brands like Hermès are investing billions in "flagship" experiences. These aren't stores; they are cathedrals of consumption. They are opening in high-wealth enclaves like Miami’s Design District or the newly revitalized corridors of Scottsdale.
The middle? That’s where the trouble is. The mid-tier department store is struggling because it offers neither the thrill of a bargain nor the prestige of luxury. That’s why you see Macy’s closing underperforming locations while simultaneously trying to open smaller, "Bloomie’s" branded shops. They are trying to find their way onto the winning sides of that barbell.
The Rise of the "Medical-Retail" Hybrid
One of the most surprising sectors for stores that are opening isn't actually selling clothes or electronics. It’s "MedTail."
Walk into any modern outdoor shopping center. You’ll see a Starbucks, a Lululemon, and... an urgent care clinic? Or a specialized dental studio? Landlords love these tenants. Why? Because you can't get a root canal on Amazon. These services drive consistent, recurring foot traffic. Once you’re done with your check-up, you’re probably going to walk next door and grab a salad or a new pair of leggings. This shift is fundamentally changing what a "store" even is.
Logistics: The Secret Engine of Store Openings
Let's talk about the boring stuff that actually matters: supply chains.
A few years ago, everyone thought "last-mile delivery" would be solved by drones. It wasn't. It’s being solved by real estate. Retailers are realizing that the most expensive part of selling anything is the last five miles of the journey. By having more stores that are opening in strategic locations, companies like Walmart and Target are essentially creating a network of mini-warehouses.
- Micro-fulfillment: Using the back 20% of a store to house robots that pick online orders.
- Returns Processing: It costs a brand about $15-$20 to process a mailed return. It costs them almost nothing if you walk it back to the store.
- Inventory Accuracy: Modern stores use RFID technology to track every single item in real-time. This means if the app says there's one shirt left in the suburban Chicago store, there actually is.
This efficiency makes the physical store a profit center for the digital side of the business. It’s all connected.
What Most People Get Wrong About "Ghost Malls"
You’ve seen the YouTube videos. Creepy music, empty fountains, shattered glass. The "Dead Mall" aesthetic is a great clickbait tool, but it’s a misleading representation of the industry.
The reality is that "Class A" malls—the high-end ones with Apple stores and Cheesecake Factories—are doing better than they were in 2019. Their occupancy rates are often above 95%. The "stores that are opening" are flocking to these premium spaces.
The "Class C" malls in the middle of nowhere? Yeah, those are toast. But they aren't being replaced by nothing. They are being rezoned. We are seeing these old shells turned into Amazon distribution centers, pickleball complexes, or even apartment buildings. Retail isn't disappearing; it’s relocating to where the people actually are and where they actually want to spend time.
Actionable Steps for Navigating the New Retail Landscape
If you're a consumer or a business owner looking at this shift, you need to change how you think about "going to the store."
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- Use the "Store-to-Web" Loop: Before buying a high-ticket item online, check if a brand has a physical presence nearby. Use the store to verify quality and fit, but check online for color variations that might not be in stock.
- Monitor "Grand Opening" Incentives: Retailers are desperate for foot traffic on day one. New stores that are opening often have exclusive regional discounts or "first 100 people" giveaways that are significantly better than standard online promos.
- Leverage In-Store Services: Many new stores are pivoting to "service first." Lululemon offers yoga classes; Nordstrom has high-end tailors and shoe repair. These are often loss-leaders designed to get you in the door—take advantage of them.
- Watch the "MedTail" Trend: If you’re looking for a new dentist or primary care doctor, look at retail centers. The competition in these spaces is driving a much higher level of customer service and "spa-like" environments than traditional hospital towers.
Physical retail isn't a relic. It’s just evolving. The next time you see a "Coming Soon" sign, realize it’s not an accident. It’s a response to the fact that we are tired of looking at screens and want to actually exist in the world again. The stores that understand that—the ones that offer an experience, a convenience, or a sense of discovery—are the ones that will keep opening their doors while the skeptics stay home.