By Brandon Svec
CoStar Analytics

December 19, 2023 | 10:34 AM

After two years of relative quiet on the retail bankruptcy front, the retail sector was rocked by several large bankruptcies in 2023. Rite Aid, Party City, Bed Bath and Beyond, Tuesday Morning and David’s Bridal were among the retailers that filed for bankruptcy this year, temporarily reinvigorating chatter of a retail apocalypse and giving market participants déjà vu from years past.

But this is not 2018, and given the steady demand for store space throughout the year retail closures remained at low levels relative to those seen during the back half of the last decade. In addition, dozens of retailers across numerous sectors were actively in expansion mode, resulting in a greater number of store openings than closing announcements for the third year in a row.

According to research firm The Daily on Retail, retailers announced 5,865 store openings in 2023 compared to 4,070 closings. It should be noted that The Daily on Retail’s methodology includes specific opening and closing numbers that have been announced, not completed, which could extend over several years.

Also, the weekly report’s tally excludes openings and closings that may be occurring in 2023 but were previously announced in 2022 or earlier. For example, in 2022, discounter Five Below announced it would be opening approximately 200 stores in 2023 as part of a plan to open up to 1,000 new stores by the end of 2025. The announced openings, despite occurring in 2023 and later, would be included in the 2022 announced openings and excluded from this year's.

Retailers leading the way in announced store openings in 2023 include a mix of discounters, such as Dollar General and Dollar Tree; off-price retailers such as TJX and Burlington; automotive parts retailers like Auto Zone and O’Reilly and tenants shifting to an off-mall strategy.

Perhaps the off-mall shift that had the most impact during the year was Foot Locker's decision to simultaneously close 400 in-mall stores while opening 300 locations in shopping centers. Other retailers listed above that are closing stores in conjunction with a shift in brick-and-mortar strategy include Signet Jewelers, Journeys and Bath & Body Works.

Outside of bankruptcies and off-mall strategic shifts, the largest announced store closures came from Walgreens, Independent Pet, Children's Place and Big Lots.