Discount and Value Stores Lead Aggressive Grocery Expansion
Grocers are stepping up store expansion plans as sustained demand for at-home food consumption and value-focused shopping drives nearly $1 trillion in annual grocery sales, according to a new report from CBRE Group.
That demand is translating into one of the most active grocery expansion cycles in recent years. Across the United States, these retailers are expected to add roughly 850 new stores in 2026, representing about 21 million square feet of new grocery store space, according to CBRE. The expansion reflects both continued consumer reliance on food and ongoing adjustments to store footprints and formats.
Discount and value-oriented operators are driving the largest share of growth. Dollar General is projected to account for approximately 450 new stores, underscoring continued penetration into suburban and rural markets. Aldi is also expanding aggressively, with roughly 180 new locations planned as it continues to scale its U.S. footprint.
At the same time, higher-end and specialty grocers are adding selectively. Whole Foods and Sprouts are each projected to open between 25 and 40 stores, reflecting continued demand for fresh, differentiated grocery offerings. Mass and club retailers are contributing as well, with Walmart planning about 12 to 15 new stores concentrated in Sun Belt growth markets, while BJ's Wholesale Club and Target each anticipate roughly 30 openings.
CBRE noted that the expansion is not only about store count, but also about format evolution. Retailers are continuing to invest in remodels and smaller-format locations designed for convenience-driven trips, dense suburban corridors and urban infill locations where traditional large-box footprints are less practical.
A key component of that shift is the integration of buy-online-pickup-in-store (BOPIS) capabilities. These hybrid models are increasingly embedded into store design and operations, positioning physical locations as both shopping destinations and fulfillment hubs. BOPIS usage is influencing in-store activity in measurable ways, the report said.
Customers picking up online orders frequently make additional, unplanned purchases during their visits, effectively blending digital convenience with incremental in-person spending. This behavior adds another layer of demand stability to the grocery model.
Consumer behavior is also reinforcing the expansion trend. While grocery prices have risen in recent years, restaurant food prices have increased more sharply over the same period, widening the cost gap between eating at home and dining out. That divergence continues to encourage households to prepare more meals at home, supporting sustained grocery demand even as broader discretionary spending patterns fluctuate.
Source: GlobeSt/ALM