NEW YORK – Dollar stores,
drug stores and club stores are on track to outperform other retail formats
within five years, Supermarket News reports. According to research by Kantar
Retail, those three channels will grow at a faster pace than the estimated 4.5%
rate of overall sales growth by 2018. Grocery stores will increase sales around
4.4% during the next half decade.
“One reason club stores
and dollar stores will be successful is that they both do a good job curating
product,” said Bryan Gildenberg, chief knowledge officer at Kantar Retail.
With a $15 billion
predicted bump in prescription drug spending next year because of the
Affordable Care Act, drug stores find themselves in a “sweet spot.” That format
is predicted to increase sales around 4.8% between now and 2018.
The health-care reform will
also bring in more business to in-store clinics, most of which are housed
within drug stores. Gildenberg noted that 30 million additional Americans will
have health insurance starting Jan. 1 — with no bump in the number of
physicians available. “In-store clinics will become a much bigger deal,” he
said.
Overall, brick-and-mortar
retail sales will increase at a 3.5% clip, he said. Those numbers exclude
online sales. Kantar also estimated that retail square footage will increase
around 1.5% over the next five years, with 60% of that jump for small-footprint
stores such as convenience stores, drug stores and dollar stores.