New Study Maps Out a Bigger Future for DC Retail
Monday, May 18, 2026
(Washington, DC) – Today, Mayor Muriel Bowser, the Office of the Deputy Mayor for Planning and Economic Development (DMPED), and the Washington DC Economic Partnership (WDCEP) released a new Retail Strategic Plan—a comprehensive study and action framework designed to strengthen Washington, DC’s retail sector and position the District for long-term growth in the current economy.
The study, which was prepared by Streetsense, examines the District’s evolving retail landscape and outlines targeted strategies to align retail growth with changing consumer behavior, neighborhood demand, and modern business needs. The report finds that while the District’s retail market continues to benefit from strong fundamentals—including a growing visitor economy, vibrant neighborhood corridors, and a diverse consumer base—the market is undergoing significant restructuring, driven by shifting consumer behavior, evolving retailer expectations, and increased regional competition.
“DC has the residents, the jobs, the visitors, and the spending power to support a thriving retail economy—and now we have the roadmap to match,” said Mayor Bowser. “We’ve already invested in local businesses, cut red tape, and built corridors that people want to be in. We’re bringing the right businesses to the right neighborhoods, and we’re making it easier than ever to open, grow, and thrive here. This plan puts that momentum to work so we can continue to build a DC where every neighborhood is a destination and where everyone has the opportunity to succeed.”
The new study finds that retail demand in the District’s retail market remains strong, supported by nearly 700,000 residents, 743,000 jobs, and more than 27 million annual visitors. Together, that demand generates an estimated $14 billion spending base citywide. At the same time, the report notes that retail performance varies significantly by submarket, with residentially anchored corridors outperforming office-dependent areas that have been impacted by reduced daytime foot traffic.
“The future of retail in DC will be shaped by experience, culture, neighborhood identity, and quality of place,” said Deputy Mayor for Planning and Economic Development Nina Albert. “This strategy positions the District to compete for the next generation of retail investment by focusing on modern consumer trends, supporting destination-oriented experiences, and reducing the barriers that too often slow business growth and expansion.”
The report identifies several strategic retail categories with strong growth potential in Washington, DC, including food and beverage, fitness and wellness, pet supplies and services, and entertainment. The study also highlights the importance of improving the District’s regulatory and permitting environment to make it easier and faster for businesses to open and expand in the District.