For the First Time in 5 Years, Brick-and-Mortar Retail Openings Are on Track To Outnumber Store Closings
Here’s something to look forward to: Brick-and-mortar store openings in 2022 are on pace to outnumber store closings for the first time in five years. The trend is an ironic byproduct of the pandemic, said Erik Foster, a Chicago-based principal and head of industrial capital markets at Avison Young.
Discount chains appear to be leading the way with regard to this trend. Dollar General announced plans to open 1,100 new stores nationwide in 2022, including tripling the number of locations for its upscale Popshelf concept. Dollar Tree and Family Dollar, which often take on triple net leases plan to open 400 new stores, including some that combine both brands at one location.
The momentum includes expansion plans for many grocery chains, according to Anjee Solanki, a San Francisco-based national director of retail services at Colliers.
Aldi plans 100 more stores, an expansion that would make Aldi the third-largest grocery chain in the country by number of locations, following Walmart and Kroger. At the other end of the spectrum price-wise, Foxtrot, an upscale Chicago-based convenience store, has plans for 50 new locations, primarily in Boston, Chicago and Austin, Texas.
Other retail chains planning expansions include Big Lots, Costco, Five Below and Tractor Supply. Wayfair, the popular online purveyor of furniture, also plans to open its first three brick-and-mortar stores.
Loopnet.com, David Matthews