Dollar Tree and Starbucks are suddenly opening hundreds of new stores as retail doom stories pile up

"Restaurants and discount dollar stores lead the way, with Dollar Tree opening 400 new stores and Starbucks opening 175. The growth across these industries is promising, even as other areas are still facing closures in the first quarter of 2026. But the same thing happened last year, with early 2025 closures evening out by the end of the year."

"Even as store closures continue to create vacancies, other tenants are quick to move into those spaces. When stores like Party City and Bed Bath & Beyond close, their vacant spaces in valuable complexes are being taken over by grocery, fitness, and entertainment stores."

"National rent growth has slowed overall, but the year-over-year change rate indicates a clear regional split. Markets in Sun Belt cities like Atlanta, Phoenix, and Orlando are experiencing rent growth after years of population growth and expanding retail customer base. Minneapolis is the one exception, with the highest national rent growth percentage at 6.7%. Several coastal markets are pulling down the average, with cities like Los Angeles and San Francisco seeing rent declines."

"All of these shifts are slowly altering the look of shopping centers across the country. The demand for brick-and-mortar storefronts for apparel, accessories, and electronics is declining as online shopping becomes more prolific. But complexes centered around restaurants, grocery and discount stores, or fitness are staying afloat and expanding into the gaps left by closures."

Restaurants and discount dollar stores are leading retail openings so far in 2026, including Dollar Tree opening 400 new stores and Starbucks opening 175. Other retail areas still face closures in the first quarter of 2026, but vacancies are often filled quickly by new tenants such as grocery, fitness, and entertainment operators. National rent growth has slowed overall, with a regional split: Sun Belt markets like Atlanta, Phoenix, and Orlando show rent growth, while coastal markets such as Los Angeles and San Francisco show rent declines. Minneapolis stands out with the highest national rent growth percentage at 6.7%. Shopping center demand is shifting away from apparel, accessories, and electronics toward restaurant, grocery, discount, and fitness anchors.

Read at Fast Company