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Discount stores make up almost half of all new stores opening this year

Almost half of all new stores opening in the United States this year will be occupied by three discount store chains. This reflects the significant growth of the discount store sector in the retail industry as other chains close stores and stop building new ones. The 3,597 store openings announced so far this year by major US retail chains are from Dollar General, Dollar Tree and Family Dollar. Press Releases These opening are a continuation of the rapid growth of the dollar store, even before the pandemic. Economists and retail analysts say discount stores are expanding due to growing wealth inequality and the hollowing out of the middle class in the United States. According to the Pew Research Center, the proportion of American adults living in middle-income households fell from 61% in 1971 to 51% in 2019. Advisory and Research at Coresight: “Therefore, the wealthy have been doing well since the Great Depression, but there are certainly a lot of people who aren’t. The dollar store has a strong appeal to that segment of the population, which is probably That’s our most important reason: “Dollar Tree is aimed at a wide range of income groups, while Dollar General and Family Dollar are primarily aimed at low-income shoppers. Dollar Tree was targeted at family dollars in 2015. Both companies are also gaining wealthier shoppers seeking discounts on essentials. Consumers may now be trying to save even more money. Dollar General CEO Todd Vassos said in March that company data showed more new customers in the last quarter compared to the same period. Last year, they were “younger than traditional shoppers.” It distorts high income. ” The Dollar Store can be opened in areas that other retailers cannot open due to its small size. Stores are typically less than 10,000 square feet for 180,000 square feet. Walmart Supercenter or grocery store in Feet. It is typically about 40,000 square feet. “It fits more easily into local real estate than larger formats such as Wal-Mart and Target,” Fenyo said. “That certainly means they can go to more places,” said the dollar store, which is also better protected from the rise of online shopping, said Gas Forcher, Chief Economist at PNC. .. “Focher said. This is due to lack of shipping costs, lack of internet access, and no experience in online shopping. Most of the products sold by these chains are infrequently purchased online, ready-to-use foods and daily necessities, limiting their appeal beyond waiting time for delivery. Other discount retailers, including the Five Below, are also opening new stores this year. , Burlington Stores, TJMaxx, Marshalls owners TJX, Big Lots, Aldi.

The three discount store chains will account for almost half of all new stores opening in the United States this year.This is the discount store sector Oversized growth In the retail industry, as other chains stop closing stores or building new ones.

Approximately 45% of the vast 3,597 store openings Retail chain So far, the United States has announced that this year is from Dollar General, Dollar Tree, and Family Dollar. According to the latest figures from Coresight Research, we are aggregating company filing and press release figures.

These openings are a continuation of the dollar store rapid growth Even before the pandemic. Economists and retail analysts say discount stores are expanding due to growing wealth inequality and the hollowing out of the middle class in the United States. The proportion of American adults living in middle-income households has declined from 61% in 1971 to 51% in 2019. Pew Research Center..

Ken Fenyo, President, Advisory and Head of Research at Coresight, said: “Therefore, the wealthy have been doing well since the Great Depression, but there are certainly a lot of people who aren’t. The dollar store has a strong appeal to that segment of the population. That’s probably our most important reason. See the growth of the format. “

Dollar Tree is aimed at a wide range of income groups, while Dollar General and Family Dollar are primarily aimed at low-income shoppers. Dollar Tree purchased Family Dollar in 2015.

Companies are also capturing more Wealthy shoppers looking for discounts Regarding the necessities, Fenyo said.

Consumers may now be trying to save even more money. Inflation is rising It is expected to continue to rise during the summer as the economy fully resumes.

Dollar General CEO Todd Vasos said in March that new customers increased in the last quarter compared to the same period last year, according to company data. [and] Higher income than traditional shoppers. “

Discount stores can be opened in areas that other retailers cannot open due to their small size, Fenyo said.

180,000 sq ft Walmart Supercenter or grocery store, Usually about 40,000 square feet.

“It fits more easily into local real estate than larger formats such as Wal-Mart and Target,” Fenho said. “That certainly means they can go to more places.”

Gus Faucher, Chief Economist at PNC, says discount stores are also protected from the rise of online shopping.

Some discount store customers are often “incapable of accessing online retail” due to lack of shipping, internet access, and no experience in online shopping. Most of the products these chains sell are food and daily necessities, which are infrequently purchased online and ready to consume, limiting their attractiveness beyond the number of days to wait for delivery.

Five Below, Burlington Store, TJMaxx, Marshall Owner TJX, Big Lots, Aldi..

Discount stores make up almost half of all new stores opening this year

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