Retail openings surpassing closures in 2021, as reported by Coresight.
The retail landscape in the United States is witnessing a resurgence, with two key categories – apparel and dollar stores – experiencing a comeback.
Several factors are contributing to this revitalisation. In the case of apparel, retailers are capitalising on value-driven promotions, renewed consumer confidence, and innovative retail strategies. Successful events like Nordstrom’s sales have demonstrated the power of promotions in driving foot traffic and sales in the apparel sector. Furthermore, consumers are showing renewed spending confidence, partly due to fewer tariff-related concerns, which is boosting sales in retail sectors, including apparel. The integration of digital and physical shopping experiences is also helping to revitalise the apparel sector [1].
The growth of dollar stores can be attributed to a rising interest in discount shopping, inventory windfalls from earlier supply chain disruptions, and the U.S. economy’s two-speed nature. Consumers are increasingly drawn to discount shopping, which benefits dollar stores and other off-price retailers. This trend is heightened by regulatory shifts that reduce pricing pressure from global fast-fashion competitors [3]. Dollar stores are also benefiting from inventory windfalls, allowing them to offer more products at attractive prices [3]. The U.S. economy’s two-speed nature, with strong retail trends contrasting slower industrial output, makes dollar stores and similar retailers more appealing as they offer affordable options [3].
Both sectors are benefiting from advancements in retail technology, such as AI-driven personalised experiences and in-store IoT technologies that enhance customer engagement and operational efficiency [1][4]. The evolution of direct-to-consumer brands towards omnichannel strategies is also contributing to growth across retail categories, including a blended approach that combines online and offline shopping experiences [2].
Among retailers planning to add new stores this year are Sketchers USA, Ulta Beauty, Sephora, Foot Locker, American Eagle's Aerie, and Dick's Sporting Goods. Analysts predict a comeback for apparel, as shoppers return to malls and refresh their wardrobe. Dollar Tree is expanding with 335 stores announced, including a concept combining its namesake banner with Family Dollar aimed at underserved rural areas. Dollar General plans to expand its Popshelf concept, targeting suburban women.
Dollar General accounts for nearly a third of the total store openings across retail this year. Last year, there were 8,960 store closures, nearly triple the number of openings. However, this year, retailers in the U.S. plan to open 3,344 stores, according to a recent Coresight Research report. This represents a 39.5% increase in store openings compared to the same point last year. So far in 2021, there have been 2,649 store closures announced. Dollar General plans to add more than 1,000 locations in 2021.
Other retailers planning new stores for this year include Dollar Tree, Family Dollar, Five Below, Big Lots, and Burlington. In recent years, store closures have far surpassed new store openings. This trend seems to be reversing, indicating a promising future for the retail sector.
- The integration of AI-driven personalized experiences and IoT technologies in retail stores is fostering a resurgence in the apparel sector, enhancing customer engagement and operational efficiency.
- The apparel industry may witness a comeback as consumers, influenced by renewed spending confidence and value-driven promotions, return to malls to refresh their wardrobe.
- Dollar stores, such as Dollar General, are expanding their presence, particularly in rural areas and suburban markets, capitalizing on the trend towards discount shopping and the U.S. economy's two-speed nature.
- The evolution of the direct-to-consumer business model towards omnichannel strategies, combining online and offline shopping experiences, is adding to growth across retail categories.
- In the midst of the pandemic and its impact on the global economy, the retail sector is showing a promising future, with an increasing number of store openings compared to last year, signifying a reversal of the previous trend of store closures.
