As Amazon approaches a $1 trillion value, the news for most retailers appears grim. Toys R Us had to shutter its doors. A slew of other retailers have had to do the same.
But amidst all the chaos, several chains are actually opening new stores. In total, retailers are opening 1,700 new stores, while closing 3,000 on the year, says an article at CNBC.
So what about these guys opening new stores? Do they have a strategy? Are they just crazy? Both?
Take a minute to look at a few of them, what they’re planning, and how you might apply what they’re doing to your own business plan:
1. Ulta Beauty
This company’s planning to open 100 of those 1,700 total new stores in 2018. Ulta feels like it can drive more market share gain this way.
They’re also remodeling old stores to include skin services, makeup stations, and cosmetics bars.
Takeaways: Do you have any value-added services you can offer your customers? Have you fully met market demand?
Seems odd that a large retailer has plans to open more stores in 2018, doesn’t it? Well, Target will add 35 smaller stores, which, the company says, have more profit per square foot than their larger counterparts.
These smaller stores offer more groceries and clothing – items which customers return frequently to buy.
Takeaway: How can you more adequately meet niche demand?
3. Dollar General
Wow, this chain plans to open 900 of those 1,700 total new locations – more than 50%! How can they possibly consider doing this in 2018’s retail environment?
Simple, Dollar General serves low-income shoppers in rural communities. Although they have rival Dollar Tree (who also owns Family Dollar), they’re in a niche they already dominate which other chains have decided not to serve.
Key takeaway: Are there any unique opportunities or niches in your market that other companies pass over?
4. Warby Parker
This originally online retailer plans to open 40 new stores in 2018. Many other internet retailers plan to follow.
Consumers are demanding it. Plus, these companies know the location of their customers. So, they simply look for customer hotbeds, and then open a physical store with a convenient location.
Takeaway: How can you use online data to inform your offline strategy?
More physical stores may be right for you and your customers. And hopefully these examples have showed you how you can use them to increase your sales and market share.