The top 10 retailers that have announced the most new square footage for the second quarter of 2016.While there are plenty of retailers that are reducing their physical footprints - or worse yet, going out of business altogether - there are also a bunch that are increasing their presence, and scooping up a lot of square footage in the process. As the Chicago Tribune reports, there also happens to be a recurring theme among the fastest growing retailers in terms of size.
CoStar has released its list of the top 10 retailers that have announced the most new square footage for the second quarter of 2016. As you’ll see from the names on the list, discount is a recurring theme among them.
|1||Wal-Mart (Super Centers and Neighborhood Markets)||15,020,000|
|8||Dick's Sporting Goods||2,650,000|
|9||Tractor Supply Co.||1,860,000|
Dollar stores occupy three of the top 10 spots, and that’s a trend that wasn’t anticipated as recently as a decade ago.
"We see them popping up in neighborhoods and regions you wouldn't have expected to find them 10 years ago," said Hunter Harris, vice president at consulting firm Boston Retail Partners.
Regardless of household budget, he explains that the price point "clearly has resonated" with today’s consumers. Beyond just the dollar stores, off-price chains Marshalls and T.J. Maxx also appear on the list, which points to a clear trend of price consciousness among today’s shoppers.
As for the outliers outside of the discount or off-price range, Neil Stern, senior partner at Chicago-based consulting firm McMillanDoolittle, explains that those companies were able to take advantage of "strong market niches."
Harris also explains a very simple fact that has helped position these companies for growth.
"You see a lot of doom and gloom, but for retailers with a really innovative product, really good service, or where it's very clear to the customer what they're doing and why they're different, the consumer will find them," he said.