Current economic times are uncertain in an unusual way. Many economists point to income increases, wealth growth, falling inflation rates, and other factors to say consumers are doing well.
But those consumers continue to be skeptical. The Conference Board doesn't expect to see a more confidence among people through at least the first half of the year as they "have a [short and shallow] recession call" though then, Chief Economist Dana Peterson told TheStreet.
Coming off a long stretch of worry over inflation, little wonder then that price-conscious retail brands have been among the fastest growing according to Northmarq's end-of-year tenant expansion trends report.
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"Dollar General remains committed to their growth strategy with 800 new stores on the horizon for 2024," they wrote. "Five Below continues to expand as well, with up to 600 new locations planned for their next fiscal year."
In apparel, both Ross Dress for Less and Burlington plan 500 new stores each and they are "now close to obtaining a nationwide presence, as Ross just recently entered the Minnesota and New York markets."
Automotive retail brands are also tending growth. AutoZone and O'Reilly look to a combined 700 new locations. Take 5 Oil Change is developing 300 new stores and is already in 41 states. "Gas station and convenience store brands Sheetz and Wawa have 300 and 800 stores, respectively, planned in the long-term, while 7-Eleven looks to operate a total of 20,000 locations in the U.S., resulting in future growth of several thousand stores," they said.
The big-box brands aren't all following the same game plan of how to meet demand. Target has plans for only 30 new locations to their nearly 2,000. Starting this year, the company is considering a new store format of more than 150,000 square feet. That's about 25,000 square feet more than the company's typical location. It has claimed capabilities to open and operate stores of any size, but said it was focusing on the new format. The company is also undertaking 200 full store remodels.
Walmart is focusing on remodeling existing stores, looking to convince consumers to stay and shop longer. If successful, that should lead to higher average sales amounts.
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