What retail apocalypse? Discount chains are on a shopping spree as bargain-hungry Americans send them into expansion overdrive

The death of American retail has been greatly exaggerated.

While thousands of retail outlets have closed their doors across the US in recent years, a very different story is unfolding in a different segment of the industry: Discount chains are snapping up locations and opening hundreds of new locations.

TJ Maxx, Ross Stores, Dollar General, Aldi and Ollie's are among the discount retailers charging ahead with major expansion plans - betting that while Americans have become increasingly careful with their cash, they will happily keep shopping for value-priced goods.

'The whole idea of a retail apocalypse has always been nonsense,' Neil Saunders, managing director of retail at GlobalData, told the Daily Mail. 'Retail has its stresses and strains, but it remains resilient and, at the moment, is actually seeing good growth.'

Elizabeth Lafontaine, director of research at Placer.ai - which tracks and analyzes retail foot traffic and consumer behavior - told the Daily Mail that retailers across many categories are continuing to expand despite economic headwinds and waning consumer sentiment.

'Expansion into new, growing markets has been successful for a lot of brands, as has the growth of discount and value-oriented chains,' she said.

The secret? Americans still want to shop, but they want to feel like they've won the bargain lottery while doing it.

'Discount chains, including value-based offerings and off-price retailers, have performed well against the backdrop of economic uncertainty and the consumer's desire for strong inherent value,' Lafontaine told us.

TJ Maxx is one of the clearest examples of the expansion trend. The off-price retailer is opening five new locations by the end of August - in Montana, Arkansas, Oregon, Virginia and Ohio - while two existing stores are also relocating.

The openings form part of a much larger strategy from parent TJX Companies, which also owns Marshalls, HomeGoods, Sierra and HomeSense.

TJX CEO Ernie Herrman announced in 2024 that the company was targeting at least 1,300 additional stores globally across its portfolio. TJ Maxx had 1,354 locations as of the company's first-quarter 2026 results.

Its appeal is easy to understand. Shoppers can find branded merchandise at discounted prices, while the constantly changing inventory creates what Lafontaine describes as a 'treasure hunt' experience.

That can encourage customers to return more frequently in the hope of finding another bargain.

Ross Stores is also charging ahead. The company announced the grand opening of 47 new stores across June and July, comprising 35 Ross Dress for Less locations and 12 dd's Discounts stores across 15 states and territories.

The openings put Ross on track to open approximately 110 stores this year. The company now operates 1,952 Ross Dress for Less stores and 376 dd's Discounts locations.

'Each new opening allows us to deliver compelling value to even more customers while creating new jobs and making a positive impact in the local communities,' said Richard Lietz, Ross Stores' executive vice president of property development.

'Off-price continues to grow, and we are well positioned to capitalize on them,' he added.

Discount giant Dollar General continuing expansion includes plans to open 450 new stores in 2026, down from the 575 stores it planned to open in 2025.

Saunders said Dollar General is benefiting from the broader shift toward value shopping, alongside Dollar Tree, Five Below and Aldi.

'There are some underlying currents, like the shift of more consumers into value channels, but that's beneficial for those players and has allowed them to expand,' he said.

But he warned that simply offering cheap products does not guarantee success, pointing to Big Lots as a reminder that discounters can still fail if they don't deliver what shoppers want.

Big Lots filed for Chapter 11 bankruptcy in September 2024 due to heavy debt, inflation and slumping customer spending.

The industry's expansion isn't limited to dollar stores and off-price fashion. 

Grocery chain Aldi plans to open more than 180 new stores across 31 states by the end of 2026, taking its US footprint close to 2,800 locations.

The German company has an even bigger target of 3,200 US stores by the end of 2028.

Nordstrom Rack is opening new locations across states including Massachusetts, New Jersey, Virginia and California.

Warehouse clubs are also expanding. Costco plans to open 26 net new stores during its 2026 fiscal year, while BJ's Wholesale Club expects to finish 2026 with between 25 and 30 new clubs across the 2025-26 period.

Even retailers outside the value sector are investing in physical stores.

Target plans to open 30 new stores in 2026, while Walmart plans to open 20 through early 2027 and remodel hundreds more. Barnes & Noble is targeting 60 new stores, while L.L.Bean has announced eight new locations.

Starbucks, meanwhile, expects to add 150 to 175 net new company-operated US coffeehouses this year following a major restructuring.

So while the retail landscape is undoubtedly changing, it is hardly emptying out.

That doesn't mean the retail apocalypse narrative is entirely off base. More than 2,000 store closures have been announced for 2026 so far, after more than 4,100 store closures in 2025.

Experts warn raw numbers don't tell the whole story. Some retailers are shrinking because their business models are struggling, while others are actively taking over the space they leave behind.

'The consumer base still wants to shop, even if their wallets have tightened and their path to purchase has changed over time,' said Lafontaine.

The biggest pressure is being felt by retailers selling discretionary goods or catering heavily to middle-income consumers, as shoppers become more selective.

'Consumers are becoming more discerning with their wallets at retail; a strong value proposition is necessary for them to spend,' Lafontaine said.

That means a struggling department store can close while a discount chain moves into another location nearby. The consumer hasn't necessarily stopped shopping - they have simply become harder to impress.

Lafontaine said retailers are increasingly focused on finding the 'right locations to serve the right audiences with the right store formats.'

That means expansion isn't simply about opening as many stores as possible. Retailers are following population growth, changing demographics and local spending habits, with emerging and secondary markets offering opportunities that may not exist in saturated major cities.

Consumers are also increasingly shopping around rather than remaining loyal to one chain.

'Consumers are cross-shopping multiple retail chains more frequently to source the best deals and assortments that fit their needs,' Lafontaine said.

That could intensify competition - and potentially create better deals for shoppers.

The current expansion spree is not without its dangers. Lafontaine warned that consumers still face economic pressures, including rising fuel costs, which could trigger another pullback in spending, particularly among lower- and middle-income households.

E-commerce is another factor changing the retail landscape, as more shopping moves online and retailers compete across both physical and digital channels.

For discount chains, meanwhile, there is the danger of assuming that consumers will always choose the cheapest option.

'Being discounter is no guarantee of success if you're not delivering for the customer,' Saunders said.

That may ultimately be the biggest lesson from the supposed retail apocalypse.

America isn't running out of shoppers. It is running out of shoppers willing to pay full price without a very good reason.

And for retailers that can offer the right combination of price, product and experience, that is proving to be less a crisis than a very lucrative opportunity.