QSRs report mixed results for Q2 2026

Popeyes Louisiana Kitchen reported a 5.2% decline in U.S. comparable sales in Q2 2026. By contrast, Burger King, also owned by Restaurant Brands International, posted an 8.5% increase in U.S. comparable sales during the quarter. Meanwhile, McDonald's’s reported a modest 0.8% increase, reflecting another quarter of lackluster comparable sales growth.

What do you make of all of this?

It looks to me like Burger King's turnaround strategy appears to be working. For example, the company’s investments in remodeling, operations and value promotions appear to be resonating with consumers.

For Popeyes, has the novelty of the chicken sandwich launch faded? Is there too much competition with Chick-fil-A Restaurants, Raising Cane's Chicken Fingers, Dave's Hot Chicken, Wingstop Restaurants Inc., KFC, etc? Is Popeyes 's chicken seen as too expensive relative to the competition; people can even buy fried chicken at their local supermarkets and rotisserie chicken at Costco Wholesale?

McDonald's lackluster performance is the most troubling because it is generally the QSR industry’s bellwether.

The mixed results tell me that consumers are still spending on QSR food, but they are increasingly choosing brands that offer the strongest perceived value.

In other words, the consumer isn’t pulling back from picking up food at fast food restaurants, but they’re becoming much more discriminating. How do you see it?

Read more: These Middle America brands are struggling in the street fight over consumers (Axios)

Henderson Park and Lowe buy Plaza Bonita, appoint Centennial to manage and lease

Unibail-Rodamco-Westfield (URW) continues its disposition strategy of American mall assets, this time with the sale of Plaza Bonita (formerly known as Westfield Plaza Bonita) in National City, Calif. Spanning over 1 million square feet, the mall benefits heavily from its strategic location in San Diego’s South Bay, serving a densely populated community and capturing robust cross-border traffic from Mexican nationals.

Unlike struggling Class B malls, Plaza Bonita is classified as a Grade A– mall asset and features high and consistent traffic, robust sales performance, and a stable lineup of today's typical major anchors (including Target, Macy's, JCPenney, Nordstrom Rack, Round1 and AMC Theatres).

May Centers developed the property, which opened in 1981, anchored by JCPenney, Mervyn's, Montgomery Ward and the May Company. Those were the days when all malls were anchored exclusively by department stores.

URW disposed of Plaza Bonita as part of a broader, years-long strategic shift to radically reduce its financial exposure to the U.S. retail market and deleverage its balance sheet. Like other mall owners, URW has faced mounting pressures regarding commercial mortgages and today's declining market valuations across its U.S. holdings.

Many regional malls across the U.S., including Plaza Bonita, have experienced a compression in valuation compared to peak market years prior to the pandemic and the broader mall valuation correction. While URW originally held and valued the asset much higher as part of its massive U.S. portfolio, the macro environment for enclosed malls forced pricing downward, allowing the new owners to acquire the asset at a resetting market basis. The mall sold for $201.5M.

The new owners, private equity real estate firm Henderson Park and real estate investor, developer and manager Lowe through its Retail reVision division have appointed Centennial to manage and lease Plaza Bonita. Retail reVision primarily targets regional malls, lifestyle centers and power centers in supply-constrained, high-barrier-to-entry major metros with a strong footprint in California's most coveted markets like San Diego, Orange County, Los Angeles and the Bay Area.

The new owners plan to inject significant capital to refresh the property. No tear downs have been announced to date. Key plans focus on creating more inviting interior and exterior public spaces, enhanced plazas and upgraded outdoor dining areas to foster a community-gathering environment.

Eastdil Secured helped source the acquisition loan from Morgan Stanley.

Read more: Westfield Plaza Bonita sold for $201.5M (The San Diego Union-Tribune)

Walmart's ESG initiatives show continued progress

RetailGreen Update: Walmart has cut direct emissions (as well as indirect emissions from purchased energy) by 7.5% over the past year and by almost 25% since 2016, according to its recent 2026 Environmental, Social & Governance (ESG) report.

The company also exceeded its renewable electricity target, with more than half of its global electricity use coming from renewable sources. Walmart also diverted 84% of its global operational waste from landfills and invested in circularity initiatives, such as resale platforms and textile recycling pilots, to further reduce landfill disposal.

For shareholders, Walmart suggests that sustainability allows the company to:

- Reduce operating costs through greater energy efficiency.
- Improve supply chain resilience against disruptions.
- Meet evolving regulatory and investor expectations.
- Strengthen relationships with suppliers and customers.

In addition to environmental sustainability progress, the ESG report says that roughly 86% of above-entry-level U.S. positions were filled through internal promotions.

Read more: Walmart Reports Progress on Sustainability, Climate and Social Responsibility Initiatives (Women’s Wear Daily)

H&M is expanding its COS branded stores in North America

The upscale division of H&M is expanding its COS branded stores in North America, securing leases at top mall locations across the U.S., including Westfield Topanga near Los Angeles, Westfield Old Orchard near Chicago and Westfield Garden State Plaza in Paramus, N.J. The first two will open this fall, and the third in the winter of 2027.

COS entered the Americas in 2014, establishing its initial stateside presence with flagship storefronts in New York City’s SoHo neighborhood and Beverly Hills, Calif. Since that debut, the brand has meticulously scaled its physical footprint across North America to encompass 12 stores in the United States, 7 in Canada and 1 in Mexico.

In addition to non-mall flagships in New York City (Fifth Avenue, SoHo and Brooklyn) and Los Angeles, COS currently has mall and retail hub locations at Westfield World Trade Center in New York City, South Coast Plaza in Costa Mesa, Santana Row in San Jose, The Galleria in Houston, Newbury Street in Boston, Oak Street in Chicago, Bellevue Square near Seattle, and the American Dream megamall in East Rutherford, N.J.

In Mexico, through a partnership with Sordo Madaleno’s subsidiary, Retail Franchise Group, upcoming stores will be in Artz Pedregal, Anima Los Cabos, Andares (Guadalajara), Punto Valle (Monterrey), San Pedro (Monterrey), and Antea (Querétaro).

COS currently has a network of 252 retail locations across 50 markets around the world. The group’s top markets by sales volume are China and South Korea. H&M is the world’s second-largest fashion retailer behind Inditex.

Read more: H&M Sets the Stage for Cos Expansion in USA and Mexico with Bold Opening Strategy (Modaes)

Retailtainment trend continues

"Retailtainment" is not new with more and more malls adding entertainment venues to their retail and dining offerings. Likewise, some retailers are launching new flagships to expand their retailtainment offerings, Ulta Beauty's new Times Square flagship under development comes to mind.

But are we likely to see more examples of retail and entertainment combined in the store experience?

Netflix House is one of the clearest recent examples of “retailtainment” within the store, which means a blending of retail, entertainment, dining and immersive experiences to drive foot traffic and customer engagement.

Netflix House sells merchandise that is tied to Netflix's intellectual property. It also offers themed restaurants, bars and specialty food offerings that extend the storytelling experience and rotating exhibits, seasonal attractions, live entertainment and special events to encourage repeat visits and patronizing its streaming channel. Just as notable is that the venue features highly photogenic environments designed to generate Instagram, TikTok and other social media sharing.

Retailtainment can occur within regular retail environments, not just the flashy TV and movie industry enhancing its merchandise displays. (RH) Restoration Hardware has quietly become one of the more interesting retailtainment case studies by combining furniture shopping and hospitality. The RH store in New York’s Meatpacking District spans 90,000 square feet across six levels and pairs the store with a rooftop restaurant, wine terrace and art installations.

Mars's M&Ms' Times Square flagship in Midtown Manhattan is one of the pioneering examples of retailtainment. In fact, it helped establish the model that many experiential retailers have followed over the past two decades.

There are many other tenant examples like Meow Wolf, Topgolf, Dave & Buster's Inc., CAMP and IT'SUGAR. Malls are equally bringing entertainment uses to enhance the retail experience. In the New York are alone, there is American Dream, Westfield World Trade Center, Palisades Center and Westfield Garden State Plaza, all with strong entertainment uses.

Retail property owners link the time customers spend at the property to an increase in sales per square foot, almost always resulting in higher market rents. Entertainment venues coupled with food can extend a visit from about an hour to several hours, which tends to increase spending across restaurants, apparel and specialty retail.

Do you think this trend is leveling off or about to increase in the next five years?

Read more: Meet the Malls and Immersive Districts Driving Retailtainment Growth, From New Jersey to Las Vegas (US Weekly)

Is Costco's standalone fuel station a new trend for membership-only cheap gas?

Costco Wholesale opened its first standalone, member-only gas station in Orange County, California. Located at 25732 El Paseo in Mission Viejo, facing the I-5 San Diego Freeway, the site features a 17,185-square-foot canopy with 40 fueling positions. No warehouse and no c-store is attached, but could this become a trend for membership-only cheap gas the likes of an Amazon Prime membership?

Fuel is not a loss leader for Costco, although the margin on gasoline is razor-thin. By offering prices significantly below the local average—in this case, roughly 71 cents cheaper than the Orange County average during grand opening—Costco incentivizes new memberships and encourages long-term loyalty among existing members.

Located just 3.5 miles away, the Laguna Niguel warehouse at 27972 Cabot Road is the closest Costco to the new Mission Viejo standalone gas station. Because both of the existing Laguna Niguel warehouses are already fully equipped with their own fuel stations, Costco's unique strategy in Mission Viejo wasn't driven by a lack of nearby fuel-equipped warehouses but rather as incremental exposure.

Costco has a second standalone gas station under development in Honolulu, projected to open in 2027, but future plans for a rollout of standalone fuel stations are sketchy.

Fuel is a major component of Costco's total business, consistently accounting for approximately 10% of total net sales.

The lowest priced annual membership that grants access to Costco’s fuel stations is the Gold Star Membership, which costs $65 per year. The average American driver uses approximately 490–530 gallons of gas per year. If a Costco warehouse club consistently undercuts competitors by even as low as $0.20 per gallon, the membership fee will likely pay for itself through fuel savings alone.

For motorists that are not typically Costco members, the savings on gas could generate a lot of income from new membership fees. If so, Costco could be at the cusp of becoming the low-cost gas provider in standalone stations, which could also add a smaller c-store component.

Neither Walmart nor BJ's Wholesale Club operates a network of standalone gas stations, except for one single Walmart gas station outside its corporate headquarters in Bentonville. If Costco's experiment pays off, it could spark a trend of other retailers adopting the membership-only fuel model.

Read more: Costco opens first standalone gas station (C-Store Dive)

Is Exemplar Luxury Group done with store closures?

Exemplar Luxury Group (ELG), formerly Saks Global has likely left its troubles behind, with very little chance of filing for Chapter 22 protection, the retail industry lingo for filing Chapter 11 twice.

ELG is now a much leaner company and is not burdened by debt. ELG aggressively hacked away at its physical footprint to ensure maximum productivity. The company went into bankruptcy with roughly 140 total locations across all banners and emerged with just 61 stores (15 Saks Fifth Avenue, 33 Neiman Marcus, one Bergdorf Goodman and 12 remaining Saks Off Fifth outlets).

Upon successfully completing its financial restructuring in June 2026, the company successfully shed nearly 75% of its $3.4 billion debt load and secured $500 million in exit financing.

ELG is likely done closing stores with the recently announced 112-year-old downtown Dallas flagship, which the company considered redundant to the NorthPark Center store. Predictably, we will see stabilization of existing locations, increase in same-store sales, return to profitability within the next three years, and we might even see footprint growth in the next decade.

Read more: Saks Global survived bankruptcy. Now comes the hard part. (CoStar News)

Burlington Stores sees more productivity in smaller prototype stores

Smaller is better, at least for Burlington Stores, Inc. Despite reducing store size to the new 25,000-sq-ft. prototype, total store sales volumes remain comparable, with a significant increase in sales per square foot productivity, and a decrease in occupancy costs compared to the former large boxes, many of which were 80,000 square feet and larger.

The transformation includes flexible fixtures, enhanced signage and brighter lighting. Burlington plans to have 1,500 stores by 2028, with 80% of new store openings reflecting the new smaller format.

Read more: Burlington’s Transformation: Downsizing Stores and Growing (Women’s Wear Daily)

South Florida retail projects morphing into mixed-use "live-work-shop-play" environments

South Florida retail projects, like many others throughout suburban communities around the country that are experiencing a housing shortage, are adding multifamily uses evolving the long-lived shopping centers into truly mixed-use properties. Some examples:

- The Bainbridge Companies will redevelop The Mall at Wellington Green in Palm Beach County, adding a 620-unit apartment project, a clubhouse and a parking garage on the former Nordstrom site.

- Simon Property Group plans to redevelop the former Sears site at Town Center at Boca Raton into a mixed-use project with a 197-room hotel, 374 apartments and 157,000 square feet of retail.

- Washington Prime Group Inc. plans to redevelop Boynton Beach Mall into a mixed-use project, with at least 1,700 apartments, which includes the Macy's site.

- Russell Galbut unveiled updated plans for the redevelopment of The Galleria at Fort Lauderdale into a mixed-use district with nine 30-story towers, more than 3,000 apartments, a 170-room hotel, office space, 30 restaurants and revamped retail.

- Whitman Family Development plans to expand Bal Harbour Shops with three 275-foot towers, including offices, a hotel and 500 apartments.

- Affiliates of Midtown Opportunity Fund plan to redevelop The Shops at Sunset Place in South Miami by adding to the retail property seven towers ranging from 12 to 33 stories, 1,513 residences, a 287-room hotel, a 1,300-seat movie theater, offices, restaurants and entertainment uses.

- Simon Property Group is redeveloping Miami International Mall as a mixed-use development, where Greystar has proposed an 896-unit apartment project on the former Sears and JCPenney sites.

What’s driving all this?

Retail properties are increasingly transforming into mixed-use developments with multifamily housing to maximize underutilized land and diversify revenue streams against market forces volatility.

Driven by changing consumer preferences toward walkable, sustainable, and convenient "live-work-shop-play" neighborhoods, these redevelopments inject a built-in customer base directly above or adjacent to existing stores, effectively boosting foot traffic and retail sales.

Moreover, combining retail and residential uses allows developers to address severe housing shortages and capitalize on the resilient demand for multifamily units, creating a symbiotic ecosystem that achieves accelerated lease-up periods, higher rental premiums for both retail and apartments, and long-term asset appreciation.

Read more: Mixed-use mania: Mapping mall redevelopments planned in South Florida (The Real Deal)

CJ Olive Young moving forward with U.S. brick-and-mortar store expansion

South Korea's beauty and lifestyle retailer, CJ OLIVE YOUNG, is aggressively executing a multi-phase brick-and-mortar expansion plan to tap into the booming U.S. demand for K-beauty products.

The retail chain, which already operates more than 1,380 stores across South Korea with annual sales exceeding $4.2 billion, opened its first 8,647-square-foot flagship store in Old Pasadena, Calif. (at the historic Tiffany & Shops building on Colorado Blvd.) on May 29, 2026. This was quickly followed by a 2,700-square-foot store at Westfield Century City in Los Angeles in June 2026.

The retailer plans to have five physical stores operating across California and the broader Western U.S. by early 2027.

To support future expansion, Olive Young has built a major distribution center in Bloomington, Calif. (San Bernardino County) to handle fulfillment for both physical retail supply and online orders.

The company has announced that its next major geographic target for brick-and-mortar stores will be in the New York area, followed by expansion into key eastern and south-central U.S. markets.

In addition to its branded stores, Olive Young is partnering with SEPHORA to introduce dedicated "K-beauty zones" online and in physical stores across the U.S. and Canada, dramatically accelerating brand awareness among mainstream shoppers. While Ulta Beauty carries a wide variety of individual K-beauty brands like COSRX, Peach & Lily, and Banila Co USA, Olive Young products are not yet sold at Ulta.

The U.S. K-beauty craze is driven by a shift toward a gentle, "skin-first" philosophy that prioritizes hydration and prevention over heavy makeup. Fueled by the global rise of K-pop music and K-dramas on Netflix, viral TikTok trends, and advanced, budget-friendly ingredients, these products have transitioned into mainstream American retail.

Read more: Retailer Olive Young's expansion mirrors K-beauty demand in US (CoStar News)

Black Rock Coffee Bar to grow five-fold

Black Rock Coffee Bar is putting the capital it raised in its IPO last year to work in an aggressive expansion that will take the western coffee chain from 190 locations now open to more than 1,000 units nationwide by 2035.

To do so, the chain has brought on Jon Vingo, a restaurant veteran with Skillets Restaurants, Bloomin'​ Brands, Inc. and Panera Bread, as the new chief development officer where he’ll oversee real estate and site selection.

Black Rock Coffee Bar currently has locations in only seven states: Arizona, California, Colorado, Idaho, Oregon, Texas and Washington. The largest concentration of its restaurants can be found in Arizona (where the company is currently headquartered) and Texas.

The chain plans to open 36 new restaurants in 2026 in existing Southwest and Pacific Northwest markets but has started evaluating new markets with potential new market entries in 2027 and 2028, according to CEO Mark Davis, MBA.

About 55% of Black Rock’s sales come from coffee while energy drinks make up 25%. Food, a growing category, already makes up 13%.

Black Rock is shifting toward more reverse build-to-suit leases in the near-term as it aims for greater speed to market. Prototype locations call for dual-format foundational (drive-thru plus lobbies). Roughly three-quarters of its locations feature indoor seating to foster a community-driven coffeehouse environment.

As Black Rock aggressively scales its growth, the company can adapt its modular drive-thru-only format for specific tight-space real estate markets where indoor lobbies aren't feasible.

Read more: Black Rock Coffee Bar names development chief; eyes 1,000 locations by 2035 (Chain Store Age)

How retailers choose between storefronts and mall inline space

Some retailers seek only storefront street locations while others seek inline spaces in high traffic malls. Some retailers need both types of exposure.

The retail real estate professional has to understand the retailer’s goals when selecting space.

Storefronts, whether street-level retail or unique freestanding stores in open-air shopping centers, offer brand independence, direct access, great visibility and flexible operating hours.

Mall spaces provide high, consistent foot traffic, shared security, amenities and tremendous cross-shopping opportunities within a managed complex.

Read more: Here’s why vacant downtown storefronts can be hard to lease (CoStar News)

Target Corporation to spend $1 billion in CapEx to open new stores and remodel older ones

Target Corporation is allocating more than $1 billion in CapEx this year to remodel 130-plus stores and open 30 new locations.

The remodels include stores in Arizona, California, Florida, Illinois, Michigan, Nevada, North Carolina, Ohio, Oklahoma, Texas and Virginia.

Key components of the capital investment include:

- Remodel older stores to improve shopping experience; (especially in beauty, home, apparel and grocery).

- Expand fulfillment capacity for drive up, order pickup and same-day delivery; (important because Target fulfills most online orders from stores rather than warehouses).

- Open stores in faster-growing metro markets where Target believes it is under penetrated.

- Reposition the brand around “style + value” after losing some momentum with consumers.

Target is trying to reverse several years of sluggish traffic and market-share pressure from Walmart, Amazon, other discount chains and fast-growing online competitors.

Deploying significant CapEx to enable physical retail to thrive at Target while expanding the store’s ability to fulfill preorders is a particular smart move at this time.

Many stores are aging. Some locations have not seen major upgrades in over a decade. Target employees on Reddit, Inc. frequently describe outdated layouts, inefficient backrooms and aging equipment.

Target wants to evolve its stores in ways that reflect how the customer is shopping today, which means creating more intuitive layouts and expanded merchandise assortments, but the company is also is looking to strengthen the role the stores play in fulfillment of online orders, according to Laurie Mahowald, senior vice president, Target Properties.

Management told Fortune last November that shoppers now expect stores to feel more curated, convenient and experiential, particularly for younger consumers who still enjoy browsing in-person for beauty, apparel and home décor.

Another factor is growth opportunity. Target has fewer U.S. stores than several key competitors and says it plans to add roughly 300 stores by 2035.

Read more: Target’s ambitious store remodel plans include 130 locations (Drug Store News)

Bob's Discount Furniture plans to open 20 stores this year

Bob's Discount Furniture plans to open approximately 20 stores in 2026. This represents a 10% unit growth.

The home furnishings chain continues to see a clear path to operating more than 500 stores by 2035, according to CEO Bill Barton. The company has been on an aggressive growth path, filing for an IPO this past February.

Bob’s currently operates 219 stores. The stores are spread across 26 states. While the chain started in the Northeast, it now has a significant presence in the Mid-Atlantic, Midwest and West Coast.

As of now, Bob’s has no presence in the deep South (states like Florida, Georgia or Texas) or the Pacific Northwest (Washington or Oregon).

The stores are designed to be no-frills to underscore its discount image but they try to be experiential, famously featuring a "Bob’s Cafe" at the center of every showroom where customers can get free coffee, cookies, candy and ice cream.

Most stores range between 30,000 and 40,000 square feet.

Read more: Bob’s Q1 growth defies wider sector trends (Retail Dive)

Retail rents are rising at a 2.4% annual rate, as availability of space falls to 4.9%

Available retail space is quickly filling up this year and for leases expiring in 2027 and 2028.

Retail rents are rising at a 2.4% annual rate, outpacing the 10-year average, amid record-low deliveries, according to CBRE. Three consecutive quarters of positive net absorption has kept the availability rate low, at just 4.9 percent at the end of the first quarter.

Occupancy is extremely high, particularly in high-quality, grocery-anchored suburban centers, and in many markets, such as the Sun Belt.

It's no longer retailers taking up retail space. It's now, restaurants of all types, entertainment, educational providers, medical and other services that are chasing good retail space for proximity to customers in suburban America. According to Ebere Anokute, head of retail research for the Americas at CBRE, last year was the first time that more retail space was leased by service tenants than by tenants selling actual goods.

Add to that the lack of new development, and you have a condition where occupancy and rents increase to meet demand for space. Construction for retail space is currently at historic lows with 2025 and early 2026 ranking among the weakest periods for new retail development in this century.

Read more: Why Retail Shines On (Commercial Property Executive)

Former Taubman Specialty Leasing Expert Cheri (Baker) Cook Joins Woodcliff Realty

Strategies to enhance landlord revenue beyond the conventional leasing of space remain a central focus for owners, particularly at properties in redevelopment during pre-leasing and construction phases.

To further advance this initiative, Woodcliff Realty Advisors, LLC welcomes Cheri Cook, a specialty leasing expert formerly with The Taubman Company.

Cheri (Baker) Cook will offer her extensive experience in driving incremental, top-line revenue growth for our retail real estate clients.

Her past experience working with premier landlords, such as Taubman Centers, Inc., GGP, Kravco Company LLC and Trammell Crow Company, spans a wide range of capabilities—from curating distinctive merchandise concepts to creating partnerships with local community entities that not only generate revenue but also drive incremental traffic to the shopping center.

She will help Woodcliff Realty clients boost NOI by introducing incremental revenue opportunities, such as pop-up and brand activations, digital signage, sponsorships, telecommunications leases, automated retail, ghost kitchens, food trucks and short-term storage solutions, to name a few.

Cheri managed specialty leasing and common area initiatives for Taubman Centers before its collection of trophy mall assets was acquired by Simon Property Group in November 2025. This allowed her to transition from working with one landlord to now assisting multiple landlords as a consultant. She will continue to be based in Detroit Metro. Please give a warm welcome shoutout to Cheri.

If you wish to discuss how to improve your specialty leasing income, let’s chat at ICSC Las Vegas.

Read more: Cook joins Woodcliff Realty Advisors (New York Real Estate Journal)

A&G Real Estate Partners is marketing Walgreens leases and company-owned parcels

A&G Real Estate Partners, LLC has begun marketing Walgreens leases and company-owned parcels.

The portfolio includes 78 properties, 60 of which are locations leased from landlords that are offered as subleases or possibly direct new leases. In the latter, A&G can negotiate with the landlord on behalf of the tenant insterested in acquiring the site, according to A&G Co-President Emilio Amendola.

The remaining locations are existing Walgreens stores, shuttered stores or undeveloped land currently fee-owned by Walgreens and are being offered for sale.

The Walgreens buildings range from 2,070 to 23,509 square feet while the undeveloped fee-owned parcels range from 0.12 to 20.86 acres.

If you recall, A&G is the same broker that sold off RITE AID leases under Chapter 11 bankruptcy proceedings to Dollar Tree Stores, Five Below, Burlington Stores, Inc., Ross Stores, Inc., Ace Hardware Corporation and several grocery chains. According A&G Principal Joseph McKeska, A&G also sold 50 fee-owned Rite Aid properties to investors and developers.

However, Walgreens, which is not in bankruptcy, does not have the same leverage to peddle leases as was the case with Rite-Aid.

In a normal business deal, if Walgreens wants to sell its lease to a different retailer, the landlord often has the right to block it via an "anti-assignment" clause.

In bankruptcy, these clauses are generally unenforceable. The bankruptcy court can force a landlord to accept a new tenant (assignee) as long as that tenant can prove financial stability sufficient enough to pay future rent obligations under the existing lease.

Since Walgreens is not currently in bankruptcy, the process of selling leases is much more difficult:

- The company with assistance from A&G must negotiate with each individual landlord to buy out the lease or get permission to sublease or assign.

- Without the typical bankruptcy cap on damages, Walgreens will likely have to pay much higher termination fees to walk away from a location.

- Landlords have more power to reject a new tenant if they don't think that tenant fits their tenant mix, credit profile or can achieve market rent through direct negotiations.

Walgreens Boots Alliance underwent a significant shift in late 2025 when it was acquired by private equity firm Sycamore Partners for approximately $10 billion.

The current marketing of leases is part of a multi-year plan to close roughly 1,200 underperforming stores. While original estimates for 2026 suggested 700 closures, the new ownership has reportedly scaled that back to fewer than 100 closures for this year to focus on stabilizing the remaining healthy stores.

Read more: A&G offering 78 Walgreens properties nationwide (Mass Market Retailers)

Albertsons to spend $2.2B on CapEx for store upgrades and technology

Albertsons plans to spend $2.2B on CapEx this year, focusing on store upgrades and technological enhancements.

The supermarket chain spent over $1.8 billion on capital expenditures during fiscal 2025. The company upgraded 94 stores last year and added nine new locations, but intends to accelerate that pace during fiscal 2026, perhaps adding around 14 or 15 new stores this year.

CEO Susan Morris said that Albertsons believes investing in its stores will play a central role in maintaining shopper engagement and encouraging people to direct their business its way.

After the $24.6B Kroger–Albertsons merger was blocked by federal and state courts in December 2024, Albertsons remains one of the largest grocery chains in the U.S., with thousands of stores and multiple banners (Safeway, VONS, Jewel Osco, Tom Thumb Supermarket, Randalls Food Market, etc.).

Read more: Albertsons looks to store remodels and technology to juice growth (Grocery Dive)

ALDI USA has been testing new formats in Florida

ALDI USA has been testing new formats in Florida aimed at modernizing Aldi’s physical retail presence while preserving the operational simplicity that underpins its low-price (mostly private-label) strategy.

Trials of the new prototype began in late 2025 in Aventura, a notable choice given Florida’s importance as one of Aldi’s fastest-growing regions.

The redesign introduces a modular system that can flex across a range of store sizes and formats, from traditional suburban supermarkets to compact urban locations. While Aldi has historically relied on standardized layouts built for speed, efficiency and lean staffing, the updated model is designed to be more adaptable — allowing stores to respond to local real estate constraints and evolving shopping behaviors without compromising cost discipline.

Globally, Aldi Süd operates more than 7,500 stores across 11 countries, with the U.S. standing as its largest and most dynamic market. The company now runs more than 2,400 stores nationwide and has steadily moved up the ranks of America’s leading grocery chains by store count.

The new design was developed by Australia-based Landini Associates.

Read more: First Look At New Aldi Format Set To Rollout Across The U.S. (Forbes)

Crunch Fitness is expanding in neighborhood and community centers

Crunch Fitness continues to expand.

Chequan Lewis, president of Crunch Fitness says the company is planning around 100 new locations, domestically and internationally, for 2026. In 2025 alone, Crunch signed leases for approximately 4.27 million square feet of space, which is a 48% jump from 2024, according to CoStar Group.

Lewis said that the most successful Crunch locations are those that fit seamlessly into a member’s daily routine, for example, locations anchored by grocery stores, discount retailers and everyday service businesses.

Affordability, convenience and efficiency are what consumers prioritize, and the company’s site selection strategy is built around those principles, he told Chain Store Age.

Grocery-anchored centers illustrate this approach well. Crunch’s peak hours — typically between 5 and 6 p.m. — align naturally with after-work shopping trips, allowing both the gym and neighboring tenants to benefit from shared foot traffic.

Adaptive reuse has also become a key strategy for landlords. Crunch is repurposing second- and third-generation retail spaces into gyms, reducing build-out costs while taking advantage of established, high-traffic locations that are already familiar to its target customers.

Read more: Q&A: Crunch Fitness president talks expansion plans, gym category trends (Chain Store Age)