HOUSTON – (Realty News Report) – Discount stores including Nordstrom Rack, Burlington, HomeGoods, and dd’s Discounts are scooping up vacant retail spaces as they expand in the Houston market.
Nordstrom Rack, the off-price retail division of Nordstrom with five locations in Houston, will take over a former Bed, Bath & Beyond in Katy next year.
Work will begin to build out a nearly 38,000-SF store at 24600 Katy Freeway in the Shoppes at Park West in January, according to a filing with TDLR. Completion is planned in August.
Nordstrom Rack, which has 27 stores in Texas, offers a mix of apparel, accessories, beauty products, home décor, and shoes at prices up to 70% off. A McAllen location is expected to open this fall.
The expansions come as retailers are projected to open about 5,500 stores nationwide this year, up about 4.4% over 2025 with discounters contributing to the gains, according to Coresight Research.
Houston’s retail occupancy held steady at 95.2% at midyear as discount stores, gyms, bookstores, and other retailers backfilled vacancies, according to the Weitzman commercial real estate firm.
In Sugar Land, Burlington will fill the former Sugar Land location of Saks Off 5th, the off-price brand that closed stores as part of Saks Global’s bankruptcy. Burlington will start work on a 25,000-SF store in September, with completion planned in March of 2027, according to a filing with TDLR.
Burlington, which has expanded to more than 45 stores in the Houston area, offers apparel, beauty products, shoes, accessories, and home décor at up to 60% off, according to the company.
In Meyerland Plaza, HomeGoods is building out a 33,689-SF space at the former Joann fabric store, according to a TDLR filing. The work is expected to start in November and wrap up in March of 2027. The off-price retail chain is a sister company to Marshalls, which also operate at Meyerland. Hobby Lobby is building out a store in Meyerland’s long vacant Palais Royal.
Across from Reliant Stadium, dd’s Discounts, a division of Ross Stores, will open a new store as part of a national expansion. It will be the retailer’s second store inside Loop 610, joining another at 6830 Harrisburg Blvd. in the East End.
The build out of the 25,000-SF store at 8202 Kirby Drive will begin in late September, according to a filing with TDLR. Completion is planned in late January 2027.
The new dd’s Discounts lease brings another discounter to the Shops at three Corners, a Fiesta grocery store anchored property of Kimco Realty near Old Spanish Trail and Kirby Drive. Ross Dress for Less, a sister store to dd’s Discounts, also operates in the center. The store will take over the former Office Depot space adjacent to Burlington, which occupies the former Big Lots spot.
Ross Stores is on track to open 110 stores this year, including 85 Ross Dress for Less stores and 25 dd’s Discounts, according to the company. dd’s Discounts, which sells clothing, shoes, home merchandise, and toys for up to 70% off, has been expanding in Texas, California, Florida, North Carolina, and other markets. dd’s Discounts has 365 stores in 23 states, including 20 in the Houston area.
Marshalls, a division of the TJX Companies with 1,265 stores nationwide, will take over another former Big Lots in the Heights area. A 25,315-SF store is planned in the Merchants Park center at 919 N. Shepherd Drive, according to a TDLR filing.
Primark, a discount fashion retailer founded in Ireland, has filled two empty malls spots in its U.S. expansion. Primark opened its second Houston area store in July. The 30,000-SF store occupies a portion of a former Sears store in Willowbrook Mall. The first location opened at Katy Mills Mall last year.
Aug. 5, 2026, Realty News Report Copyright 2026
Feature image: HomeGoods will occupy at the former Joann store in Meyerland Plaza. Realty News Report photo Copyright 2026
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File: Discounters Scoop Up Houston Retail