TUCSON, ARIZONA – Dollar stores continue to thrive, even as Americans are enjoying a full-employment economy, suggesting shoppers have internalized bargain-shopping behaviors learned during the Great Recession.
California-based Swerdlow Family Holdings, LLC purchased a 7,880- square-foot Family Dollar Store located at 5713 S. Park Ave. in Tucson. The property was purchased as an investment sale from Olson Family Dollar, LLC for $1,075,000 ($136 PSF) with 5 years remaining on the lease.
The impact of shoppers flocking to discount retailers is only expected to continue to hit enclosed and outdated shopping malls, of which the U.S. arguably still has far too many today. And Bank of America says additional store closures by mall-based retailers will only continue to benefit the discount stores like Walmart and Target, as the pool for competition over shoppers’ dollars shrinks further.
Typically selling inexpensive items, dollar stores or price-point retailers predominantly sell all of their merchandise at a single price. The dollar store industry has grown rapidly throughout the United States and North America in general in recent years. The stores tend to be located in smaller communities that are too small for Walmart’s. Dollar store sales amounted to approximately 33.8 billion U.S. dollars in 2016. In that year, there were about 30,500 dollar stores across the United States. By 2021 that number is expected to grow to about 38,000, according to Statista.com.
DCM Development Company of Tucson closed on approximately 1.15 acres in Marana for construction of a Dollar General store. The lot located in Rancho Marana sold for $370,000 ($7.39 PSF) and will be resold with a 15-year net lease for investment once completed.
After Dollar General, discount chains Dollar Tree and Family Dollar, are all in the top five for opening stores in 2019.
Meantime, spending is moving away from department store chains like J.C. Penney and Sears — which have been forced to shut stores in bulk — and apparel-based specialty chains such as Dressbarn is going out of business. Forever 21 is also considering restructuring.
Dave Hammack, Principal and Retail Specialist with Cushman & Wakefield | PICOR, represented the seller in the Family Dollar Store transaction. Joe Schuchert with SRS Real Estate Partners, Newport Beach, represented the buyer.
Hammack also represented the buyer in the land deal for Dollar General in Marana. The seller, SREP Marana Retail Associates of Paradise Valley (Randy Bury, manager) was self-represented.
For additional information, Hammack should be reached at 520.546.2712.
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