Just a Few ‘Essential’ Sectors Unscathed Amid Widespread Volume Decline
The impacts of the global coronavirus pandemic continued to set in during the second quarter of 2020, with volume falling significantly for the second straight quarter. In Q1, at the onset of the pandemic, fear-stricken investors decreased their activity across all sectors. In Q2, with three additional months’ experience operating in a pandemic, investors are proceeding with caution in sectors that are deemed highly essential and are dominated by strong credit tenants.…
How does the online giant expect to break into one of the busiest sectors for buyers?
As we continue to grow into a digital age, we see more and more retailers developing their online presence to have a wider reach with consumers around the world. This is how Amazon become the shopping behemoth we know today. As a result, different brick-and-mortar stores struggle to create a business plan that addresses Amazon’s competition and eventually fall to the wayside. One sector, however, has not seemed to be taken aback from this competition—the Dollar Store sector.…
To net lease investors, discount dollar stores offer passive cash flow, thanks to long-term leases (averaging 10-15 years) and credit-worthy tenants.
Travel through a small town or the outskirts of a larger city, and you’ll likely pass by the local discount dollar stores. Whether those stores boast the green sign of Dollar Tree, or the yellow-and-black General Dollar signage, they offer aisles of everyday goods, ranging from beauty products, to cleaning essentials, to food, all within a 10,000-square-foot space.
To net lease investors, discount dollar stores offer passive cash flow, thanks to long-term leases (averaging 10-15 years) and credit-worthy tenants. …
The two sectors at either end of the cap-rate change spectrum in Q3 were dollar stores, up 45.1 bps, and pharmacies, which posted a -29.3 shift.
Cap rates’ upward trend continued in the third quarter with an 8-point basis gain, according to to Calkain Research’s Q3 Cap Rate report. Furthermore the trend shows no sign of abating, Calkain goes on to say.
The two sectors at either end of the cap-rate change spectrum this quarter are dollar stores, up 45.1 bps, and pharmacies, which posted a -29.3 shift.…
Within the dollar store sector, Dollar Tree is the largest operator of discount variety stores offering three main types of products, consumable merchandise, variety merchandise, and seasonal goods.…
Family Dollar is a chain of general merchandise discount stores. In 2015, Dollar Tree successfully acquired Family Dollar and together they operate 14,835 discount stores across 48 states and the District of Columbia. This united entity operates two banners, Dollar Tree, a true dollar store, offering all products for $1, while their other banner, Family Dollar, carries merchandise with a variety of price points, generally under $10.…
Dollar General is the largest dollar store chain. As of March 2017, they operate 13,429 locations across 44 states. The locations offer products that are frequently used and replenished, such as food, snacks, health and beauty aids, cleaning supplies, clothing, housewares, and seasonal items at low everyday prices. …
Dollar stores were once looked upon as second-class citizens in the retail world. Well, that is far from the case nowadays.
Since the recession, consumers have been more discerning in their shopping choices, and looking for deals at various outlets instead of just going to a single store to do their purchasing.
Dollar General has been on a winning streak, both as a retailer and as a net lease investment, since the economy began to recover in 2009. A number of factors are driving that winning streak as a retailer, but the company’s appeal as a net lease tenant is based on profitable operations and ambitious plans for expansion. What’s more, Dollar General recently unveiled strategic plans that will likely help it maintain its glitter in the eyes of net lease investors.
Dollar General already has an investment-grade corporate credit rating from rating agencies including Moody’s Investors Service (Baa3) and …
