More For 2021: These Retailers Are Opening New Stores
Although many businesses struggled throughout 2020, some have continued to grow, and retail stores such as Ross and Sephora have plans to expand. As some brands move outside of malls, others are creating curbside pick-up locations. If you're a shopper, you're in luck! These retailers are opening new stores in 2021.
Target Intends To Open 40 New Stores Every Year
In October 2020, Target announced that it planned to open 40 new stores. They were not kidding; in that month alone, they opened 18 locations. According to The Real Deal, Target currently has 1,897 stores and aims to open 40 new ones every year.
One of Target’s expansion goals is to join universities. One of their new locations will be in the middle of the University of California, San Diego. As one of the few chains that benefited from the pandemic, Target is going to focus on smaller-scale stores under 50,000 square feet.
Sixty Ross Stores Will Open In 2021
In 2020, Ross Dress for Less opened some new locations. In October 2020, the company debuted 39 new stores across 17 states. Then, in March 2021, they made another announcement: that they would open 60 new stores throughout 2021.
Forty of these locations will be Ross, while the other 20 will be dd's DISCOUNTS (owned by the same business). "As we look out over the long-term, we remain confident that Ross can grow to 2,400 locations and dd's DISCOUNTS can become a chain of 600 stores," said the Group Executive Vice President, Gregg McGillis.
Macy's Wants To Operate Outside Of Malls
In September 2020, Macy’s CEO Jeff Gennette announced that he planned to open smaller stores away from malls. While Macy’s sores have become synonymous with malls, the chain is following a growing trend in retail. These smaller, independent stores will be called Market by Macy’s.
Gennette has not announced how many stores he plans to open. After Macy’s barely escaped bankruptcy in June, he said that he would close around 125 larger stores to make way for this expansion. Expect more smaller Market by Macy’s stores in cities like Dallas in 2021.
Dollar Tree Will Create 600 “Combination Stores”
In March 2021, Dollar Tree announced that it plans to open 600 new stores in 2021. These include 400 more Dollar Trees and 200 more Family Dollars, as well as 1,250 renovated Family Dollar locations. The company calls these "combination stores" since it took over Family Dollar in 2019.
Since merging both stores, Dollar Tree sales have increased by 8% and Family Dollar has risen by 10.5%, according to Chain Store Age. As of January 2021, the chain runs 15,685 stores. Throughout quarantine, demand for discount stores has skyrocketed, and the company continues to profit.
Ulta Beauty Will Open Shops Inside Target
Although Ulta Beauty initially planned to open 75 stores in 2020, the pandemic pushed their plans. In November 2020, the chain announced a new plan. Small in-store Ulta departments will open inside of Target stores.
The partnership will create at least 100 new Ulta stores, each around 1,000 square feet. In exchange, Target will expand its cosmetics section. Ulta’s shares have risen more than Target’s, so perhaps this will help their stocks. “More than ever before, now is the time for innovation in retail,” said the CEO of Ulta Beauty, Mary Dillon.
To Expand, Sephora Partnered With A Different Retail Chain
In January 2021, Sephora announced plans to open 60 new stores and 200 "mini-shops." Instead of appearing in malls, these shops will be inside Kohl's stores. This partnership replaces an earlier one that Sephora had with JCPenny.
According to the NPD Group, makeup sales decreased by 34% in 2020. At the beginning of 2020, Sephora planned to open 100 new stores, in what CNN called "its largest expansion ever." But plans changed, and with $3 billion from online sales, the company is doubling its expansion.
While Pier 1 Moves Out, Burlington Will Move In
Burlington, formerly known as Burlington Coat Factory, currently has over 750 locations in the United States. In March 2021, the chain re-launched an old plan to expand. CEO Michael O'Sullivan aims to launch 100 new stores in 2021 and eventually build up to 2,000 locations.
Like other large chains, Burlington is downscaling in size. According to the managing director at Alvarez & Marsal Consumer and Retail Group, David Ritter, Burlington might move into closed Pier 1 locations. Unlike other brands, Burlington does not sell online and relies entirely on brick-and-mortar locations.
Lidl Is Spending $500 Million On Expanding
The grocery chain Lidl has invested $500 million to launch dozens of new stores. By the end of 2021, Lidl will launch 50 new stores and over 2,000 jobs, the company says. These new locations will dot the eastern United States, raising the chain's in-person shop count over 150.
Although Lidl had a rocky start, its low prices gave it more business. In July 2020, a study found that Lidl's prices are 45% lower than the average retailer. This attracted more customers, especially during the money-conscious quarantine period.
Aldi Will Create 500 Curbside Pickup Spots
The discount grocery chain Aldi will rapidly expand in 2021. In February 2021, Aldi reported that it will open 100 new stores and 500 new curbside pickup locations. Their “coast to coast” expansion will mainly be in California, Arizona, Florida, and the Northeast, according to Supermarket News.
Currently, over 2,070 Aldi stores operate in the U.S. The 500 curbside locations are sponsored by Instacart, and customers can order via Aldi’s Instacart app. In the meantime, the new stores will offer 200 new jobs and cost around $5 billion over five years.
Costco Never Stopped Expanding
Even during the 2020 pandemic, Costco was expanding. In July, it planned to open five new stores by that autumn. These locations were under construction before quarantine began. In 2021, the plan remained the same.
So far, Costco has scheduled 13 new store openings for 2021 and 2022. These spread through both the U.S. and Canada. In total, Costco has around 803 stores, and it has debuted around 15 new locations 2019, according to Saving Advice. Customers can also suggest new store locations on the company website.
LEGO Stores Are Popular, Even Among Adults
Despite the pandemic, LEGO sales rose by 14% in 2020. That success encouraged the company to launch 120 new stores, starting in September 2020. At least 80 of them will be in China, but a few will be in the U.S.
"We saw a very positive development during the coronavirus lockdown when families began playing and building LEGO sets together," said CEO Niels Christiansen. He added that, when their current stores opened, there have been lines. Meanwhile, online sales have been booming, with the LEGO website boasting over one million adult fans.
Dick's Sporting Goods Will Launch More Warehouses
Dick's Sporting Goods is the largest sports retail chain in America. In October 2020, the company reported that it would expand more. Eleven new stores popped up in October alone, while current shops launched "Soccer Shops," smaller soccer departments within the store.
Dick's also plans to grow its Warehouse Sale clearance outlets. In February 2021, the chain announced that it would launch four new Warehouse stores. These stores should provide at least 85 extra jobs and provide discounts up to 70% off. Plus, every opening will host giveaways for customers.
New Tractor Supply Stores Are Adapting
In September 2020, Tractor Supply celebrated the opening of its 1,900th store. But it doesn't plan on stopping. With an extra $10 billion in sales, it plans to open 90 new stores. Eighty will be Tractor Supply and ten are Petsense, which the company also owns.
On top of that, Tractor Supply will remodel between 150 and 200 stores. This includes the Project Side Lot program, converting storage locations to outdoor shopping areas. This will allow a buy-online-pickup-in-store (BOPIS) program. They are investing more and more money into cleanliness initiatives as well.
Expect Over 1,000 New Dollar Generals
As demand for discounted retail rose in 2020, Dollar General sales increased by over 20%. In March 2021, the chain reported its goal to open 1,050 new locations throughout the year, almost doubling its store count. Part of this is due to its new brand, Popshelf.
Instead of being under $1, Popshelf offers items under $5. Dollar General aims to remodel 1,750 sites and relocate 100 others to incorporate the Popshelf brand. Chief Operating Officer Jeff Owen predicts that the brand will eventually build 17,000 stores across America.
TJ Maxx, Marshalls, And HomeGoods Will All Have More Stores
During a press release in February 2021, TJX--the owner of TJ Maxx, Marshalls, and HomeGoods--announced its goal to open 76 new stores throughout the year. They will especially target HomeGoods, aiming to eventually double its store count from 821 current locations to over 1,500.
Although TJX's sales went down in 2020, they still created stores. Forty-six new locations for Marshalls, HomeGoods, and TJ Maxx debuted during that year. During lockdown, the stores still profited through online sales. That expansion model has continued into 2021 and shows no sign of stopping.
Old Navy Is Growing, But Slowly
In September 2019, Old Navy had big plans to expand. The company announced its goal to launch 800 new stores over the next three years. But when the pandemic hit, these plans paused and Old Navy did not report growth for a while.
By August 2020, Old Navy had opened 14 new stores and closed eight. The chain still plans to debut between 30 and 40 new stores in 2021, a decrease from its prior goal of 75 stores per year. Like other retailers, Old Navy is also focusing on out-of-mall locations.
Starbucks's Ten-Year Expansion Plan
Starbucks will not only expand in 2021, but it also plans to continue for ten years. In December 2020, the company announced that it plans to launch 22,000 more stores by 2030. That would put them at 55,000 locations, including smaller shops and drive-thru spots.
For 2021 specifically, the chain is working to debut 850 locations, mainly in the American suburbs. However, it will also close around 400 locations. "Broadly speaking, we've seen U.S. transactions migrate from dense metro centers to the suburbs, [and] from cafes to drive-thrus," said the CEO Kevin Johnson.
Why Five Below Is Flourishing
Five Below is a discount store that targets teens with home decor, tech accessories, and more. In 2020 alone, the company launched 120 new stores, putting it over 1,000 locations. For 2021, the chain aims to open 180 new shops.
According to retail analyst Sucharita Kodali, Five Below has filled "a void in the market" after taking "a lot of the wallet share that once went to Toys 'R' Us."
Despite A Setback, At Home Is Still Expanding
The home decor business At Home initially planned for a much larger expansion. The company's goal was to stretch from 206 stores to 600. However, investors' debt and the pandemic slowed these goals to a halt.
In February 2020, At Home once again announced a growth schedule. Not only did they debut six new stores, but they also reported plans to spread across the country. According to GO Banking Rates, At Home aims to increase its store count by 10% annually over the next three years. Time will tell whether this intention works out.
Fabletics Is Quickly Becoming A Popular Chain
Fabletics, a workout brand and subscription service, is rapidly expanding. In May 2020, the business announced that it would debut 24 new stores in 2021. That would put it close to 100 stores across the United States, even though it first created stores in 2015.
Co-founded by Kate Hudson, Fabletics has performed well while scaling up its online presence. It plans to incorporate quizzes that tell customers which pair of leggings will work for them. Co-founder and CEO Adam Goldenberg said that their customers are "eager to return."
