In 2024, several retailers have filed for bankruptcy or are in the process of closing down locations. This includes well-known names such as Big Lots, LL Flooring (formerly Lumber Liquidators), Walgreens and Party City. However, according to Northmarq’s Q4 2024 report on tenant expansion trends, there is still potential for growth in the retail sector due to the availability of vacant spaces left by these closures.
Northmarq has identified a list of 100 tenants that are expected to expand in the coming years based on factors such as their rate of expansion and brand recognition. These include popular names like Target, Dollar Tree/Family Dollar and McDonald’s.
The report highlights convenience as a key factor driving growth for quick-service restaurants (QSRs) like Jack in the Box and Slim Chickens, as well as convenience stores such as Wawa and Sheetz. Consumers’ increasing demand for convenience has also led to more sophisticated offerings from these types of retailers.
Discount retailers like Five Below and Ross Dress For Less are also expected to see significant growth due to consumers’ continued focus on affordability. Meanwhile, established brands like Walmart and Lowe’s are looking towards new markets or investing in online capabilities while expanding their physical presence.
The closure of certain retail stores can create opportunities for other expanding brands looking for space. Developers can use this information about tenant expansions when planning future projects or attracting investors interested in working with growing businesses.
Ultimately it is consumer demand that drives which retailers will thrive while others struggle – evidenced by loyal customers eagerly anticipating new store openings from popular chains across various industries.
