Retailers so far appear to be forging ahead with their roll-outs of new stores, even after telling investors how potential tariffs and spending-weary consumers may end up dinging their bottom lines.
This week a variety of major chains — including off-price retailer Burlington Stores and apparel seller Abercrombie & Fitch — reported their earnings. They didn't say they planned to slow their expansion plans at this time, but rather will continue to open brick-and-mortar locations.
They join other retailers expanding their store space. Last weekend, Destination XL Group, catering to "Big + Tall men," took over a former Paper Store space at Hanover Commons in East Hanover, New Jersey, its fourth new store opening of the fiscal year and its 10th within the past 12 months across the United States. And Boot Barn earlier this month said it is on pace to increase its store fleet by 15% annually.
Nonetheless, this year store closings are still expected to far outpace openings. U.S. retailers have so far announced 5,140 store closings and 3,689 store openings for calendar 2025, up by 151 closures and 127 openings from last week, according to Coresight Research.
On recent earnings calls, some retailers, like Macy's, warned that potential tariffs and any pauses in consumer spending may negatively impact their profits — despite taking measures to source fewer goods from China and to negotiate better terms with suppliers. Some chains have lowered or pulled their guidance. The ever-changing situation with tariffs has been exacerbated with shifting court decisions in recent days.
"There remains a great deal of uncertainty," Corie Barry, CEO of Best Buy, said on the company's first-quarter earnings call on Thursday morning.
Burlington growth
Burlington, based in Burlington, New Jersey, has offered 2025 sales guidance "predicated on opening 100 net-new stores this year," according to CEO Michael O'Sullivan.
"We remain very confident in our ability to hit this number of openings," he said on Burlington's first-quarter earnings call Thursday.
He added that "we have also been active over the last two months in building out the pipeline for 2026. We were recently able to acquire 46 leases through the bankruptcy process for Joanne Fabrics. ... Having these stores for the 2026 pipeline, we are optimistic about hitting our 100 net-new store target for next year."
Retailers that are liquidating and closing stores is providing vacant space for Burlington to move into, according to O'Sullivan.
"The silver lining of the current volatile environment is that it is likely to drive further consolidation of brick-and-mortar stores, and these closures should provide more opportunities to expand our store footprint," he said.
Abercrombie openings
New Albany, Ohio-based Abercrombie & Fitch for fiscal 2025 expects "to deliver around 100 new 'experiences,' including 60 new stores and 40 rightsizes or remodels," according to Chief Financial Officer Robert Ball.
With 20 store closings expected, that means Abercrombie will end up with 40 net new stores, he said on the chain's fiscal first-quarter earnings call Wednesday.
Those openings will include some more of Abercrombie's new small-format stores, like the one it opened in Williamsburg in Brooklyn, New York, in April, according to company officials.
"On the smaller footprint ... there’s more coming here in Q2," said Scott Lipesky, Abercrombie's chief operating officer. "Just running these smaller stores, it’s been a muscle that we’ve had to build over the last year and a half and has been a focus for Abercrombie, the brand."
He added that "we’ve learned a lot. We’re tweaking these stores a little bit. Each neighborhood has its own vibe, whether it’s how we build or the product that’s in there. And so we’re learning a lot and remains an amazing opportunity for Abercrombie to go forward."
Boot Barn expansion, Kohl considerations
Boot Barn, based in Irvine, California, was bullish on new stores when it reported its fourth-fiscal quarter results May 14. It opened 60 new stores in fiscal 2025, and it plans to open 65 to 70 new stores in fiscal 2026.
"We expanded our national footprint into four new states in fiscal ’25, ending the fiscal year with a physical presence in 49 states," Boot Barn CEO John Hazen said.
He said believe our new stores not only generate tremendous returns but also increase brand awareness as we expand our footprint across the country and elevate Boot Barn to a household name," he said.
He added that "looking forward to fiscal ’26, we are planning to open 15% new units, which equates to 65 to 70 new stores. We expect to open these stores in both legacy and new markets. Given the consistent performance of our new store openings across all geographies, we believe that we have the market potential to double our store count in the U.S. alone over the next several years."
Department store chain Kohl's, based in Menomonee Falls, Wisconsin, closed 27 stores earlier this year. But during a first-quarter fiscal 2025 call Thursday, the company said it doesn't anticipate any future widespread cutting back of its fleet.
Kohl's does review its physical footprint as its store leases come due, according to Chief Financial Officer Jill Timm.
"I think there’s always going to be edits around the store portfolio to continue to elevate its productivity," Timm said.