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.
Resources: KWNLA Research; Company’s SEC filings