What: According to a report from Coresight Research, retailers opened 5,103 stores last year and closed 2,603 locations.

Why it is important: For the first time since 2016, major US retailers opened more stores than they closed in 2022.

The number of store closures declined by more than 50% in 2022 compared to 2021.

Discount stores led openings with 1,858 stores, while retailers in the apparel sector closed 750 locations. The trend is expected to continue in 2023, given the threat of recession and increasing inflation.

With the current economic environment, experts expect a slight increase in store closures in 2023, but the numbers are unlikely to reach what was seen in 2019 and 2020, even if economic conditions worsen.

If the projections come to fruition, the US will gain 82.6 million square feet of retail space but lose 41.7 million square feet through store closures.

Store openings outspace closures in 2022