Retail Chains Look to Openings/Remodelings for Growth
Retail companies can usually accomplish growth with two fairly common approaches: opening more locations and upgrading current footprints that encourage more sales from customers. While most signs point towards an improving economy, consumer spending is shaky at best and varies greatly by season, even by month. According to a recent Chain Store Guide (CSG) report, an alarming number of American consumers are not prepared for sudden income loss. Projected retail and restaurant spending has decreased for six straight months.
Retailers now more than ever have to find ways to lure customers into their locations. With this emphasis on aforementioned growth, it’s not surprising that retail and restaurant chains in CSG’s real estate database are planning thousands of new store openings and current store remodels. Based on current data, 8,400 retailers project to open over 24,200 new locations and expect to remodel nearly 11,000 established locations.
Retail Chains – Projected Openings by Industry*
Retail Chains – Projected Remodelings by Industry*
In addition, over 650 restaurant chains project to open approximately 14,000 new locations, while 157 chains expect to remodel over 6,500 existing locations.
Current CSG research also indicates hundreds of retail and restaurant chains are expected to make various buying decisions in the next twelve months related to store remodel expenses.
Store Remodeling – Expected Lighting/Signage Buying Decisions*
Breakdown by Number of Chains
*Source: Chain Store Guide’s Database of Leading Chain Tenants