Ask a brand, retailer or marketer, and they’ll all probably say the same thing: Brick-and-mortar retail stores are dying thanks to the rise of eCommerce and online shopping.
But is this really true, or is it more of a case of perception influencing reality?
And if brick-and-mortar retail really is dead or dying, then maybe somebody should tell that to the retailers themselves?
DSW, which operates 482 discount shoe stores in 42 states, recently announced plans to open 21 new stores across the nation by October.
“New store growth is an important and exciting piece of the DSW formula,” Valara Gee, DSW’s vice president of stores, said in a statement announcing the retailer’s physical expansion plans. “It allows us to bring the brand to more communities and build relationships with new customers. More stores also enable us to provide additional customers with immediate access to our full assortment.”
And DSW’s U.S. expansion plan is really just the tip of the iceberg when it comes to global retailers’ expansion plans, according to data provided by The Balance, with scores of prominent retailers — think household names, like Starbucks, Dick’s Sporting Goods, Wendy’s, Family Dollar and ALDI, just to name a few — planning to open, literally, thousands of new brick-and-mortar retail locations in the coming years.
“Even before Q4 2015, there were plenty of commitments publicly communicated about thousands of new brick-and-mortar retail stores that would be opening in the 2016 calendar year and beyond,” according to The Balance. “In fact, if everything goes as planned, the overall future store openings tally for all U.S. and international retail and restaurant chains will be in the tens of thousands.”
Although it’s much more popular to hear about a prominent retailer closing down a large number of stores than it is when they announce plans for expansion, scores of big-name retailers have announced ambitious global expansion plans as far into the future as 2020.
More often, The Balance goes on to state in its annual Retail Store Opening Roundup, when a retailer announces a slew of store closings, it’s more an indicator of a flailing brand or business model than the death knell of brick-and-mortal retail itself.
“Stores closing are more indicative of a lack of brick-and-mortar relevance, which has been ailing and failing for some of the biggest and oldest U.S. retail chains in the past few years,” according to The Balance.
So, which retailers will lead the way in brick-and-mortar expansion in the coming years?
Starbucks tops The Balance’s roundup list, with plans to open 1,500 new retail locations worldwide by 2019, focusing largely on stores outside of the U.S. and in emerging or developing markets, like China and Malaysia.
Family Dollar, Dollar General and Wendy’s have all announced plans to open 1,000 additional retail locations by 2020.
The rise in dollar and discount stores highlights a shift in consumer trends and spending habits toward more discount and off-price brands and retailers, which shows no signs of slowing down anytime soon. Dollar General also plans to open 900 new stores by the end of 2016, while Dollar Tree plans on opening 600 new locations by then.
While stores like Starbucks and Walmart, which plans to open 240 new international stores in the coming year, focus their efforts on global expansion abroad, international brand ALDI is planning an expansion push by opening more U.S. locations between 2016 and 2020; ALDI has plans to open 520 new retail stores globally by 2019.
TJX Companies, owner of T.J.Maxx, Marshalls and HomeGoods stores, is planning to open 197 new locations, again highlighting the continued rise of off-price and third-party retailers.
Dick’s Sporting Goods plans to open 150 new locations by 2018.
India will be getting 100 new Dunkin’ Donuts locations by 2017.
And China will see 100 new Johnny Rockets locations by 2016.
Of course, as The Balance noted, all these plans are subject to change and the whims of an unusually fickle economy at the moment.
“A lot can happen to the economy in general and the U.S. retail industry in particular between now and 2020,” according to The Balance’s retail store roundup. “But it’s still valuable to know that growth and expansion is still part of the vision for the future of brick-and-mortar retailing.”