Landlords are probably pretty happy right now that a chain like Family Dollar exists. The retailer just opened its 7,000th store and has 300 a year on tap.
Increasingly, the dollar-store format is selling more things to more people. Family Dollar, and its competitors, are adding more food to stores and other products not typically thought of as dollar-store items. Heck, T-Mobile will even sell cell-phone service at Family Dollars soon.
Family Dollar isn't the only chain in the sector with big expansion plans. Dollar Tree is doing tremendously well financially, and opening its share of stores. And Dollar General, the leader of these chains, will have close to 10,000 stores this year after opening 625.
These stores are getting the attention of Walmart, which is posting poor domestic sales performances recently. The largest retailer in the world is trying out its own similar Walmart Express concept.
Of course, as it relates to shopping-center owners, dollar stores probably aren't paying the same rents that former tenants used the pay. But they're better than nothing.
Will we start to see dollar-store vacancies a few years down the road, though. Do you think this sector is in danger of over expansion, especially if the economy turns around?
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