The news: There’s no shortage of headlines about agentic commerce and cutting-edge retail tech, but the real signal of companies’ priorities is where they’re spending. Several of the largest US retailers are pouring at least $20 billion into their stores, which still account for the majority of their sales, per The New York Times.

The examples:

Walmart plans to remodel 650 Supercenters and Neighborhood Markets this year and open around 20 stores through early 2027 as part of a $9 billion remodeling effort launched in 2023. Upgrades include wider aisles, improved layouts, more digital touchpoints connecting shoppers to online assortments, and expanded pickup and delivery services. The retailer is also adding private consultation rooms in pharmacies and vision centers, along with larger deli and hot bar selections in many Neighborhood Markets.

Target is investing roughly $5 billion to remodel about 130 stores and open 30 new locations. It is expanding dry grocery, essentials, and pantry assortments while increasing fresh and frozen offerings in select stores to strengthen its one-stop-shop positioning. It is also refreshing merchandise displays to highlight its “elevated style” and upgrading fulfillment areas and checkout lanes to improve traffic flow and convenience.

Dollar General is remodeling about 4,250 stores across two initiatives. Around 2,000 locations are part of its Project Elevate program, which focuses on merchandising updates, layout adjustments, and key category refreshes. The remaining 2,250 stores are undergoing full remodels. The retailer expects both efforts to drive performance, with a 3% comp sales lift in Project Elevate stores and a 6% gain in fully remodeled locations.

Retailers are also expanding footprints and testing new formats. Whole Foods is rolling out its Daily Shop concept in major cities; Best Buy is opening six new stores—its first expansion in a decade; Costco plans to open 30 warehouses annually; and TJX expects to add 146 net new stores this year.

Why is this happening? There’s a clear financial incentive for retailers to upgrade stores, as the One Big Beautiful Bill Act passed last year allows businesses to deduct the full cost of improvements immediately rather than over time.