KW Net Lease Advisors closely monitors major single tenant net lease retailers’ footprint in the marketplace. See below for year-over-year new store development and progress made through Q1 of 2017
Chart 1: New Store Development Plan 2016-2017 YOY Comparison
Chart 2: Store Expansion Progress by 2017 Q1
*322 store locations just acquired will be convert to DG by Oct 2017
*estimated number based on average converted stores in past 3 years
Behind the Numbers:
Major dollar stores have been carrying out aggressive expansion plans for 2017.
Major auto parts stores have different strategies for greater penetration in existing markets and expansion to new markets.
AAP plans to add 25% more new stores this year compared to 2016. O’Reilly anticipates fewer new stores opening than 2016, as they are allocating resources to convert previously acquired stores.
As of Q1 2017, most retailers on our watch list are effectively executing their expansion plans.
In addition to constructing new stores and renovating current stores, Dollar General is also actively acquiring existing store locations from other retailers.
CVS is not focusing on store expansion in 2017. They are rolling out a new store design, more heath/beauty products and other customer focused changes to identify new growth points and drive traffic to existing locations.