So far this year, the U.S. retail market has shown absolute strength. Although, some have been wary about the state of the economy this summer due to inflation, it has not stopped retailers from opening new stores. Some however, are hitting the pause button on new store openings going into the latter half of the year to see how the state of the economy pans out and whether inflation will go down.
The types of stores opening the most are discount retail stores and restaurants. “U.S. retailers have announced 1.9 percent more openings and 58.1 percent fewer closures compared to the same time last year,” according to Coresight. “Discount chains represented 45 percent of total store opening announcements year-to-date, while apparel retailers accounted for 33 percent of closures,” stated Coresight. Dollar General, Dollar Tree and Family Dollar are leading the pack with the most store openings.
“2022 has been the first year when store openings have surpassed closings since 2016,” according to Alanna Joy Loeffler, managing director, business strategy, Americas retail services, with Cushman & Wakefield. She also suggested that her data shows the strongest retail market since 2007 to 2009 (the Great Recession).
It has been an exciting time for retailers and brokers. We will see a strong remainder of 2022 in the industry.
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