2021 is raining dollar stores
Nearly half the 3.6K new shops will be discount retailers
Cost-conscious consumers have gotten the attention of retailers.
Nearly half of the 3,597 stores expected to open nationwide this year will be no-frills discount shops, according to a report from Coresight Research.
Dollar General will open 1,035 locations, Dollar Tree will cut the ribbon on 393 stores and Family Dollar will open up 200 shops. Dollar Tree also owns Family Dollar.
The new brick-and-mortar stores stand in contrast to the 3,395 retailers expected to close this year, according to the report.
Variety stores have become increasingly popular amid the pandemic, as shoppers seek lower prices for essential goods.
Dollar General’s fourth quarter net sales jumped nearly 18 percent to $8.4 billion, compared to $7.2 billion year-over-year. Dollar General’s 1,000-plus new stores will add close to 11 million square feet to its footprint.
Other discount retailers are also expanding, including Five Below, which will add 200 stores; and grocery chain Aldi, which is opening 100 locations.
But the coronavirus has slammed the wider retail industry, with many chains having already declared bankruptcy, while others teeter on the brink of collapse. Stores have skipped rent payments over the last year, and many companies have been closing locations.
Clothing chain Francesca’s folded up 342 shops, 7-Eleven put the lid on 300 locations and Bed Bath & Beyond called it curtains for 246 stores.
Those that are closing their physical stores entirely include Family Video, canceling all 250 locations, Pet Valu, which has told 119 stores to play dead; Godiva, which is melting away 116 locations; and Heritage Brands, which is cutting the tag on 81 stores.