Retailers Open New Store Due to Low Rent

The Retailers are planning to open more stores across the country than closing them. Many famous retailers like Ulta Beauty and Sephora to Dicks sporting goods, Five below, and Tj Max are getting back on track from the Covid 19 pandemic and they are moving forward with the plan of expansion which was paused due to Covid-19.

On Thursday athletic apparel Retailer Fabletics announced that the company has planned to open two dozen stores in the United States. Toy store Toys R Us filed bankruptcy and ultimately liquidated and currently has a new owner. The owner of the toy store is also planning to open a few stores this year.

According to tracking by Coresight Research, nearly 3,199 stores and 2,548 stores will be opened in the United States based on the announcements made by the Retailers. Last year nearly 8,953 stores were closed and  3,298 openings as the virus spread the retail industry dropped and pushed dozens of businesses into bankruptcy. In 2019 nearly  4,548 openings were announced by Retailers and 3,747 in 2018.

Many stores were closed in 2020 which has led to a lot of vaccines. Mall and shopping center owners across the country are looking for tenants to fill that space quickly. Some retailers are happier that they made it through the pandemic.

Fabletics co-founder and CEO Adam Goldenberg said that since there are a lot of vacancies, they can get better deals than the deal which they made two years ago. According to a biannual report by The Real Estate Board of New York said that the rent in New York has dropped which is historically low. It has dropped as much as 25% from 2019.  Vacancy rates for retail real estate in New York City rose 21% year over year during the fourth quarter