Coffee, Auto, Discount Retailers in Growth Mode
There’s room for growth among many retail brands, particularly in the coffee, automotive and big-big discount retail sectors.
Despite fluctuating economic conditions and shifting consumer behaviors, many retailers “are demonstrating resilience and agility by actively seeking growth, opportunities, exploring new markets and innovating their offerings and experiences to meet evolving demands,” according to a new report on retail trends from Northmarq.
The paper likened coffee shop growth to the 2010s surge in burger joints. Starbucks and Dunkin’ continue to expand, right along with Dutch Bros., Scooters Coffee and 7 Brew Coffee, which are growing across different regions.
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Popping up seemingly on every corner, this new brew of coffee retailers is catering to enthusiasts seeking quality, coffee, innovation, flavors and convenience service.
Vehicle age is trending higher, automotive sector benefits
The average age of vehicles in the U.S. is at a record high of approximately 12.5 years. In turn, O’Reilly Auto Parts plans to grow by 200 locations this year, and AutoZone has a multi-year plan to add 500 stores, capitalizing on the trend.
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Auto service shops are also thriving. Take 5 Oil Change is looking to add 150 locations each year to keep up with demand. Service stations, convenience stores and car washes are seeing robust growth, with brands such as Wawa expanding into new markets, on their way to reaching 1,800 locations by the end of the decade.
Target, Walmart back to growth mode
After a recent slow going, Target and Walmart are in expansion mode. During the next decade, Target plans to open 300 new stores, and the brand is exploring a larger footprint concept.
Target has joined the trend shown by other retailers who have committed to lowering prices. It has announced reductions on 5,000 food and household items.
Walmart’s five-year plan calls for the addition of 150 locations, which will reflect its “Store of the Future” concept with a focus on sustainability. Walmart said its new stores will feature improved layouts, greater product, selections, and enhanced technology.
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