May 12, 2022
Happy Thursday, Retail readers!
Situational awareness: Barclays downgrades Beyond Meat, cutting the price target by 69% on "limited visibility" on a path to recovery, CNBC reports.
1 big thing: Building blocks
Retailers continued to open stores at a much higher pace this year, as of the end of April, according to Coresight Research, a research and data provider, Richard writes.
Why it matters: Retail store openings are an important indicator of the overall health of the sector, given that most sales still occur in physical locations.
- Only 13.2% of all retail sales were online last year, according to the Census Bureau.
Details: Merchants have announced 4,020 openings so far this year compared to 1,395 closures.
- The openings come as physical retail sales rose 10% year over year in April, according to Mastercard SpendingPulse.
Of note: The jump in store openings stretches across the sector, from discount dollar stores to digital brands.
- Dollar General will open 1,102 stores this year, Coresight estimates, while Family Dollar is projected to add 393 locations.
- Eyewear retailer Warby Parker plans to open 40 stores this year, while athleisure brand Vuori is estimated to add 20 locations.
Yes, but: That doesn't mean there aren't retailers paring back. CVS is expected to close 300 stores, more than any other retailer so far this year.
What's next: While discounters will continue to open stores for the foreseeable future, pharmacy chains and department stores are expected to continue to review their footprints and shutter locations, Coresight president Ken Fenyo said.