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The Retail Winners Are: Drugstores, Dollar Stores And Warehouse Clubs

Posted On: 7/3/2013

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TAGS: bulk vending operators, vending machine locations, coin-op locations, customer traffic, Kantar Retail, drugstores, dollar stores, membership warehouse clubs, Bryan Gildenberg

NEW YORK CITY -- Bulk vending operators curious where customer traffic will be in the coming years, and which retail chains have the best chances for expansion, may want to pay attention to projections by the consulting firm Kantar Retail. According to Kantar, drugstores, dollar stores and membership warehouse clubs will be the big retail winners over the next five years.

Those three formats are expected to outperform Kantar's projected 4.5% pace of overall retail sales growth by 2018, while supermarket sales are likely to grow about 4.4% in the next five years. "One reason club and dollar stores will be successful is that they both do a good job curating product," said Kantar chief knowledge officer Bryan Gildenberg.

Additionally, drugstores find themselves in a sweet spot because of $15 billion in projected increases in spending on prescription drugs in 2014 thanks to Obamacare. The drug retail channel is expected to grow about 4.8% in the next five years.

Brick-and-mortar retail sales, excluding online shopping, are expected to grow at a 3.5% pace, Gildenberg added.

Kantar also projected retail square footage would grow a modest 1.5% in the next five years, with 60% of that coming from small-format stores like drugstores, dollar stores and convenience stores.