2024’s top expanders: Dollar stores, value apparel and automotive
As consumers focus on value in a rebounding yet still uncertain economic environment, it comes as no surprise that dollar stores, discounters, quick-serve restaurants and auto aftermarket services figure as the most aggressive expanding companies in 2024.
A report released by capital markets resource Northmarq entitled “The Top 100: Tenant Expansion Trends” finds Dollar General committed to adding 800 new locations. Hard-charging O’Reilly Auto Parts—which opened more than 180 new stores in 2023—has plans to open another 200 this year. And Ross Dress For Less continues on its long-term plan to erect 700 sites that will take its store count to 2,900.
Other fast-moving expanders include the following:
In the restaurant sector, McDonald's has embarked on a global expansion of 10,000 locations, 900 of which are targeted for the United States. As many as 315 more restaurants are in Chipotle’s plans for 2024.
Burlington is set to open at least 32 new stores in 2024 on its way toward a goal of 500 additional locations within the next five years.
Take 5 Oil Change, which invites customers to stay in their cars for a 10-minute service, recently opened nine new locations and has 300 more in its pipeline. It opened its 1,000th location in 2023.
In the fitness and sporting goods sector, Planet Fitness opened 26 new clubs in 2023 as part of a global expansion plan involving 600 new locations and Academy Sports + Outdoors recently opened 14 stores on its way to 140 new locations within the next three years.
Although it has eased off on U.S. expansion plans it announced several years ago, Aldi remains the fastest growing grocer with 45 new supermarkets in the works for 2024.
Target has 30 new stores in its sights for 2024 and may be going ahead with more 150,000-sq-ft. concepts such as the one it opened in Katy, Texas, last year. Northmarq noted that Walmart, meanwhile, has paused expansion while it focuses on remodeling existing stores with the goal of keeping shoppers in their stores longer.
“While some companies are aggressively opening new locations and exploring innovative concepts and formats, others are taking a more cautious approach by evaluating their real estate footprints or even making the difficult decision to close store locations,” said Lanie Beck, Northmarq’s senior director of content and marketing research.