February 28, 2024
Discount stores are the star of American retail

Discount stores are the star of American retail

Discount stores have starred in U.S. retail opening announcements as they prove less vulnerable to price hikes and online competition. you Retailers operating in the sector It announced plans to open around 2,240 units in the country in the period to June, accounting for nearly 45% of all new stores.

Five Below, which expanded its pricing beyond $5 with the Five Beyond initiative, said earlier this year that it plans to increase its number of stores to more than 3,500 by the end of fiscal 2030. The next period will include opening 925. to 1,000 stores. Four years.

Family Dollar plans to open 400 this year, while Dollar Tree plans to open 190. Dollar General is also growing aggressively — as of December last year, it plans to open 1,110 new stores by 2022.

Industry leader TJX plans to open 150 new stores this year. Burlington plans to open 90 and Ross stores recently reaffirmed plans to open 75 new Ross dresses for less and 25 DD discounts.

The importance of discount stores is a recurring theme in the articles of Marcos Gouvêa de Souza, founder and general director and publisher of Gouvêa Ecosystem. Market & ConsumptionHere on stage.

“The truth is that we will continue to see this significant growth for a long time, all of which can bring a greater sense of added value, differentiated products, private brands, segments or challenging propositions with higher costs to channels”, he observed. Inside One of the texts.

    Discount stores are the star of American retail

Retail sale of auto parts

In addition to discount stores, auto parts retailers have also shown themselves to be less vulnerable to the advancement of e-commerce and continue to focus on the in-store experience.

O’Reilly Automotive plans to open 175 to 185 new stores this year, representing growth of just 3% based on more than 5,700 stores, and Advance Auto Parts announced plans to open 125 to 150 new stores earlier this year.

AutoZone is also growing its store base, but has yet to announce plans for new openings in calendar 2022.

Many retailers that are opening physical stores are digital natives, including Warby Parker, which went public last fall and expects to sustain strong revenue growth by “expanding its presence” in retail in fiscal 2022, it said in pre-IPO investor materials. Management recently plans to open 40 new stores this year on a base of around 160, representing a 25% growth.

Cap’s Athleta brand, which plans to open 30 to 40 new stores, is opening other digital natives stores; Fabletics, which predicts the beginning of 30; And bed and bath brand Brooklynn, which in April plans to have 25 to 30 stores by 2024.

Discount stores are the star of American retail

Fewer closures

In the first six months of 2022, major U.S. retailers announced plans to open about 5,080 stores, which is very similar to the first six months of last year. Daily in RetailAn industry research platform with a financial hub.

Additionally, they announced plans to close around 895 stores, a 63% drop from 2,410 closure announcements during the same period last year.

Store closing announcements fell significantly in the first six months of 2022 compared to the same period last year. Among retailers announcing closings, Food Locker leads the way with plans to close 190 of its more than 2,800. However, the shoe retailer plans to open 100 new stores this year, so the planned net reduction is 90 stores.

Other retailers closing stores include Sears Hometown, which is closing about half of its 200 remaining stores; Rite Aid plans to close 145 of its more than 2,400 stores in April, including 63 closings announced in late 2021; And Amazon said it was closing all of them Physical bookstores and 4 star stores.

Rounding out the top 10 are Cab and Banana Republic North America, which plans to close 50 to 60 of its more than 960 stores. Genesco plans to close 46 of its 1,425 stores; and Skechers, Bath & Body Works, Chico’s and White House Black Market and Children’s Place, which plan to close at least 40 stores.

Openings and closings are specific numbers of announced, unfinished, multi-year openings, according to The Daily on Retail methodology. Also, The Daily On Retail count excludes openings and closings that may take place in 2022 and are reported in 2021 or earlier.

Flexible consumer

Despite inflation, it has recently reached levels not seen since 1981 Central strategyU.S. consumers are resilient, supported by continued labor market strength and a $2.5 trillion surplus in savings from the pandemic, as the U.S. Federal Reserve moves from raising interest rates to slow the economy and reduce inflation.

The rebound was evident in June retail sales, which rose 1% from the previous month, driven by growth in nine of 13 categories. This was reinforced during Amazon’s two-day “Prime Day” in July 2022, when total US online spending grew nearly 9% year-over-year to $11.9 billion, according to Adobe.

Forecasts for the back-to-school season suggest that consumer adaptability will continue at least through the fall. However, spending is expected to shift away from electronics, which performed best in the previous two seasons, to apparel and supplies.

Concerns about easing Covid-19 are also driving consumers back to stores. This is well reflected in MasterCard SpendingPulse’s breakdown of U.S. retail sales for June, which showed an increase of 11.7% year-over-year and e-commerce sales of just 1.1%.

with the information that Blog NRF.
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