Analysis of Store Openings and Closures in U.S. Retail Sector
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy DG?
Source: CNBC
- Increase in Store Openings: Coresight Research projects that U.S. retailers will open approximately 5,500 new stores in 2026, representing a 4.4% year-over-year increase, indicating that value retailers are effectively attracting consumer spending and reflecting sustained demand for low-cost goods.
- Decrease in Store Closures: It is expected that about 7,900 stores will close in 2026, a 4.5% decline from the previous year, marking the lowest number of closures in the past three years, which suggests signs of recovery in the retail sector post-pandemic.
- Impact of Bankruptcies: Last year, 32 retailers filed for bankruptcy, leading to significant store closures; however, affluent consumers continued to support retail growth, highlighting the ongoing K-shaped recovery in the economy.
- Tightening Real Estate Market: With a slowdown in bankruptcies, retail real estate demand is expected to tighten, particularly in major retail markets, as retailers compete for limited commercial space, potentially leading to rising rents in the coming years.
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Analyst Views on DG
Wall Street analysts forecast DG stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DG is 143.86 USD with a low forecast of 125.00 USD and a high forecast of 170.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
9 Buy
7 Hold
0 Sell
Moderate Buy
Current: 144.900
Low
125.00
Averages
143.86
High
170.00
Current: 144.900
Low
125.00
Averages
143.86
High
170.00
About DG
Dollar General Corporation is a discount retailer. The Company offers merchandise, including consumable items, seasonal items, home products and apparel. Its merchandise includes brands from manufacturers, as well as its own private brand selections with prices at discounts to brands. Its consumables category includes paper and cleaning products, packaged food, perishables, snacks, health and beauty, pet, and tobacco products. Its seasonal products include holiday items, toys, batteries, small electronics, greeting cards, stationery, prepaid phones and accessories, gardening supplies, hardware, automotive and home office supplies. Its home products include kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies and kitchen, bed and bath soft goods. The Company’s apparel products include basic items for infants, toddlers, girls, boys, women and men, as well as socks, underwear, disposable diapers, shoes and accessories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Impact Analysis: All listed stocks are categorized as 'Sell', suggesting that investors should exercise caution when considering investments in these companies, particularly given their poor performance in dividend growth, which could adversely affect their long-term stock performance.
- Rating Standard Interpretation: Seeking Alpha's dividend growth ratings use a scale from A+ to F, with grades of B- or above considered a Buy, while D+ or below is deemed a Sell, highlighting a significant deficiency in these companies' commitment to shareholder returns, potentially impacting their attractiveness.
See More
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- Stability of REITs: Realty Income owns over 15,500 single-tenant commercial properties, with clients like Home Depot and Dollar General, and a 99% occupancy rate ensures steady cash flows, with expectations for profit and stock price increases as interest rates decline.
- Transformation Plans at Target: Target, with nearly 2,000 stores, faces inventory challenges and market pressures, yet its 54-year history of dividend growth and a $5 billion investment plan under the new CEO could help revitalize performance and attract investor interest.
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- Leadership Contributions: CEO Todd Vasos highlighted Rowland's significant contributions since joining the board in 2023, leveraging his extensive global marketplace experience and expertise in finance, risk management, and technology, which positively impacts the company's future direction.
- Board Retirement Announcement: Warren F. Bryant informed the company of his plans to retire at the 2026 annual shareholder meeting, with Vasos expressing gratitude for his strategic and financial leadership since 2009, underscoring his invaluable role in the company's growth.
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See More
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- Leadership Acknowledgment: CEO Todd Vasos expressed gratitude for Calbert's contributions during his tenure, highlighting his strategic oversight during significant growth and transformation phases, which instills confidence in the company's future direction.
- Director Retirement Announcement: Warren F. Bryant plans to retire at the 2026 annual shareholder meeting, concluding his service since 2009, with Vasos noting his invaluable retail experience and strategic insight as critical to the board's effectiveness.
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