US Dollar Store Chains Lead Retail Store Openings in the US
According to a report published by Coresight Research, three of the US leading dollar store retail businesses - Family Dollar, Dollar General, and Dollar Tree - are opening up more new stores than other large chain retailers in 2021.
In a world where companies are rapidly building their presence on eCommerce platforms, the market of brick-and-mortar dollar stores is still booming. The retail analysis agency monitored approximately 60 big-box brands and kept track of store openings and closings that took place year-to-date. As of Friday, August 27, 2021, the aforementioned dollar store chains made up more than one-third of all superstore openings.
John Mercer, Coresight Research’s head of global research, said, “Dollar stores are leading store openings so far this year, continuing a trend we’ve seen for the last few years as this sector exploits a market opportunity, and it’s being driven in part by the longer-term bifurcation in the economy, where higher-income customers are doing well, but lower-income consumers are still on tight budgets.”
According to Coresight Research’s findings, Dollar General has announced that it’ll be opening 1,035 new retail locations and closing only 18 stores. The retailer’s competitor, Dollar Tree, is set to open 393 new stores with no announced closures for 2021. Lastly, Family Dollar is planning to open 198 new locations and close 26 stores.
In total, the three dollar store chains account for 1,626 out of the 4,616 announced new retail store openings. According to Coresight Research’s tracker, not far behind the top three dollar store chains is Five Below, a company reportedly set to start doing business in another 158 retail locations by the end of 2021.
Over the past decade, Coresight Research has also been analyzing big-box dollar store openings nationwide on an annual basis. Based on the data provided by the retail analysis agency, since 2012, this store category has been contributing with more than 1,000 new retail locations each year.
Ivana is a staff writer at SmallBizGenius. Her interests during office hours include writing about small businesses, start-ups, and retail. When the weekend comes, you can find her hiking in nature, hanging off of a cliff or dancing salsa.
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