Convenience stores

Auto stores and convenience stores are the biggest retail winners of the pandemic

With months of mandatory closings, social distancing restrictions, and tempered consumer demand, the retail market has certainly been hit during the pandemic. But not all retailers come out of the pandemic for the worse. In fact, many are in expansion mode or are already experiencing a rapid rebound from the pandemic.

Stan Johnson Co. recently released a Retail Tenant Expansion Report to outline growth trends in the retail market. The report shows several retailers across all industries expanding their current footprint. “The automotive and convenience sectors are reporting strong levels of planned expansion, with 7-Eleven looking to grow significantly over the long term, Quik Trip anticipates significant regional expansion and many auto parts stores are looking to add new net stores. in the coming year, ”Lanie Beck, director of corporate research, marketing and communications at Stan Johnson Co., told GlobeSt.com. Automotive side, Advance Auto Parts, Auto Zone and Jiffy Lube are in expansion mode and thus arouse the interest of investors. For example, just a few days ago, Machine Investment Group closed the acquisition of a portfolio of 8 Jiffy Lube properties in the San Francisco Bay Area. The portfolio totals 38,360 square feet and is 100% occupied by Jiffy Lube International under triple net leases.

Another retailer in the process of expansion is Sunbelt Rentals. The company has 300 locations planned for the next three years. “This growth will create opportunities for investors looking for assets in the industrial outdoor storage sector,” says Beck.

In addition, Beck notes that dollar stores and other discount retailers are also growing. “Dollar stores and discount retailers continue to show high levels of expected growth, as do grocery stores, the most robust growth coming from ALDI,” said Beck. “Many brands in the fast food industry are also experiencing rapid growth, with several exploring new geographies and new store concepts. “

While not all retailers have been affected by the pandemic, some are recovering quickly. Fitness centers are at the top of the list, according to Beck, who says gyms are making a comeback. “As people learn to navigate the post-pandemic environment, we are seeing consumers returning in droves to experiential and non-essential retail stores,” says Beck. “Major fitness chains, including LA Fitness, Life Time and Planet Fitness, are all reporting new store openings. “

Banks are also recovering quickly and many of them are starting to grow. “We will be keeping an eye on the growth of retail banks,” says Beck. “Bank of America and Chase Bank are two companies with aggressive growth plans, and we’ll see how these new developments translate to investor interest in the years to come. “