Dollar stores like Dollar General, Dollar Tree, Family Dollar, Aldi and Five Below are poised to open about 1800 of the new 2700 stores slated for opening in 2019, says CBS News.
Despite the trend of brick and mortar storefronts going bankrupt and closing their doors, budget shops are thriving. Dollar stores are breaking records with their expansions.
For example, the top retail company for expansion in 2019 is Dollar General, which is planning to open 975 stores nationwide. Dollar General CEO Todd J. Vasos said in a recent earnings call,
"We continue to invest in the business from a position of strength. We are continuing to prioritize new store expansion and other real estate projects."
In comparison, 7,200 plus stores have gone belly up this year.
These budget stores’ success can be attributed to a number of things. For one, the rise of e-commerce has put many of the more traditional retailers out of business. Also, dollar stores typically are smaller and offer fewer products, making shopping quick and easy. The discounted prices do not hurt their rise in popularity, either.
The growth of these storefronts is universal, but predicted to be most rapid in rural communities. With a widening selection of fresh and frozen food, they offer inexpensive alternatives to price-sensitive shoppers.
Considered by many experts to be “recession proof,” the upward trends of dollar stores indicate that they are here to stay.