A recent report from IHL Group shows that during the rest of 2017 there will be more stores opening than in closing in the US. Here are some of the findings that might interest you:
Major Store Openings
The chart above shows that the stores that are opening this year are mostly discount and convenience stores. Fashion, on the other hand, seems to be less important in physical retail stores. One of the reasons can be the fact that this kind of stores are attractive more to younger shoppers who are willing to spend online.
Major Store Closings
The study shows that fashion-related vacancies are dominating the list of store closures. As we mentioned before, one of the reasons for this trend can be technology. However, the report also explains that a better explanation for this, is that technology accelerated the decline of retailers who have not been in touch with their consumers preferences as much as their competitors.
Restaurants are growing too
The study also shows that consumers still spend their money on food and the market for restaurants is continuously expanding. You can see in the list above the restaurant brands with the most store openings.
One of the restaurants that is opening more and more stores is Noble Romans, the pizza brand. One reason for this quick franchising expansion is that families choose pizza for being a popular food that is usually low-priced among other restaurant options.
Largest number of restaurant closings
As regards the study, a list of several restaurants will be also closing stores during the rest of 2017. The president of IHL Group, Greg Buzek, who wrote the report, highlights some of reasons for the trends that the numbers reflect:
- Overexpansion – Some restaurants are suffering the consequences of expanding too far, too fast, as Subway, Pizza Hut and even Starbucks.
- Families and middle class – Low-cost dining options are growing fast mainly because families want to eat economically. That is why for example, in the coffee sector, lower-priced Dunkin has more opportunities for expansion than there is for Starbucks.
There’s a huge opportunity for retail stores and restaurants for future expansion. Consumers are not spending less, and instead they are spending more and more in new stores. Also, their tastes are changing, and changing really fast. Companies need to be updated with these changes and evolve together with all new consumer’s habits. So no matter if you are a retail store or restaurant owner, take this study in consideration. Opportunities for expansion are more and more evident.