Economic uncertainty and discount prices (of course) are driving consumer traffic to discount and dollar stores, according to a new report from Placer.ai.
Andrew Fallon, Executive Managing Director, SRS National Net Lease Group, Market Leader, Washington DC, tells GlobeSt.com that inflation is causing consumers to pay more attention to spending and shopping habits, and since they cannot control the price of certain essentials like gas and grocery they can choose where to shop.
“As a result, we tend to see an uptick of customer traffic to discount retail and dollar stores,” Fallon said.
“As retailers like Dollar General, Family Dollar, and Dollar Tree increase their store counts, they are making access and convenience a priority for their daily shoppers and bargain hunters, and these top tenants will continue to maintain or add market share.
“Also, due to the favorable corporate credit and triple net lease terms, developers continue to build new discount stores which are popular investments to REITs, private investors, and 1031 exchange buyers seeking durable, passive commercial real estate investments.”
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