Featured News

New brick-and-mortar store openings outpace closures in 2021

Brick-and-mortar retail stores are back in business, with new openings outnumbering closures for the first time in four years according to an analysis by IHL Group.

The analysis of more than 900 retail chains found that most of the growth in new store openings is driven by mass merchants, grocery stores, drugs and pharmacy and convenience chains.

Interestingly, the researchers believe e-commerce is also driving some stores to increase their physical footprints as online and offline shopping experiences become more integrated. The report found that digital businesses are increasingly relying on physical stores to ship items to customers faster, and to enable customer pickup and returns of items.

Previously, the rise of e-commerce was often cited as the main factor driving physical store closures across the U.S. In 2020, the nation’s largest retailers closed 6,573 more brick-and-mortar stores than they opened, though the COVID-19 pandemic undoubtedly played a role in that.

However, 2021 has seen that trend reversed with retailers opening 4,361 more stores than they closed in the year to date.

“It’s not like it’s stores against e-commerce anymore” Brendan Witcher, a Forrester Research principal analyst, told The Wall Street Journal. “They play an integral role in supporting each other. The old story that stores are dead is simply not true.”

The trend has been accelerated by property owners offering big incentives to win back tenants who fled during the pandemic. For example, officials at Levi Strauss & Co. told the Journal their company is planning to open 100 U.S. stores in the next five years, and has been securing retail spaces for prices 15% less than they were pre-pandemic.

“The majority of consumers like to engage with us in our stores,” said Harmit Singh, chief financial officer at Levi’s.

Another well known brand, Dick’s Sporting Goods, is planning to open whopping 800 stores for its House of Sport, Public Lands, and Golf Galaxy brands, and those locations will feature “experience activities” such as rock climbing walls, batting cages and putting greens, to entice customers in.

At the same time, many digital-native retailers are looking at expanding into the physical world. The best example of this is Amazon, which not long ago announced plans to open its first department stores. It already operates a number of convenience stores in the U.S. under its Amazon Go brand.

Mike Wheatley

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at mike@realtybiznews.com.

Recent Posts

A Brief Guide to CMB Securities

Commercial mortgage-backed securities (also known as CMBS) are a type of fixed-income security forming 2%…

18 mins ago

How Important Are Real Estate Reviews? 5 Things to Know

Research from 2018 showed that only 11% of Americans trusted real estate agents. Much of this came…

9 hours ago

How ChatGPT Can Be a Great Marketing Tool for Agents

The global advertising industry was worth $590.3 billion in 2021 and has grown since then. This includes…

10 hours ago

A suppliers guide to marketing to estate agents

There are many factors that can differentiate one estate agent supplier from the next, so…

2 days ago

Digital Curb Appeal: The Secret to Showcasing Properties Properly Online

In the real estate sector, it’s well-known that the value of curb appeal simply can’t…

3 days ago

Tips for Building a Good Credit Score to Buy a House

The journey towards homeownership starts with a good look at your credit score. You'll likely…

4 days ago