Nov 26, 2021 - Economy

First time in 5 years: More stores open than close

Axios

A Dick s Sporting Goods concept store at West Town Mall in Knoxville, Tenn. Photo: Brianna Paciorka/Knoxville News Sentinel via Reuters — A Dick's Sporting Goods concept store at West Town Mall in Knoxville, Tenn. Photo: Brianna Paciorka/Knoxville News Sentinel via Reuters

Retailers will open more stores this year than they close — for the first time since 2017, The Wall Street Journal reports from an analysis of 900+ chains by research company IHL Group.

Why it matters: "Stores have become integral in fulfilling e-commerce orders. They serve as distribution hubs and convenient places for shoppers to pick up and return online purchases," The Journal writes.

Mass merchants, food, drug and convenience chains are driving most of the growth, WSJ notes.
While department stores and speciality retailers continue to close more stores than they open, the pace of the closures is slowing, The Journal adds.

What's happening: "As the cost of acquiring customers online has skyrocketed, stores ... are a less expensive way to attract new shoppers," The Journal writes.

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First time in 5 years: More stores open than close

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