Retailers are finding success in rural markets by offering merchandise that caters to the needs of the local consumers, which can consist of farmers and ranch owners. But in addition to that particular niche retail segment, there are other stores and restaurants that are also growing their brand by consciously targeting smaller town communities. Advantages include less competition, cheaper lease rates and deep-rooted customer loyalty. A few brands that are seeking out small town rural sites as they continue to grow include Big Lots, Hibbett Sports, Taco John’s and A&W Restaurants.
Big Lots is concentrating new store growth in more rural markets, primarily selling value priced furniture and home goods. The brand anticipates opening as many as 80 new units per year over the next four to five years in underserved markets where Big Lots has room to grow. Look for small towns sprinkled within the states of Kansas, Idaho, Iowa, Utah, Arkansas, Nebraska, Minnesota, Montana, New Hampshire and Wyoming to all be considered for new store sites.
Hibbett Sports will continue to focus its expansion efforts in underserved smaller markets, especially in areas beginning to experience population growth and which have a dearth of sports tenant retailers. Look for small towns sprinkled throughout California, Arizona, New York, Pennsylvania, Utah, Minnesota, New Jersey and Maryland to all be eyed for expansion. The sports retailer expects to open new stores at a pace of about 35 new units per year over the next eight to 10 years.
Taco John’s has found success expanding into rural and growing suburban markets that have a lack of Mexican food options. The drive-thru restaurant brand expects to open between 25 and 30 new units per year over the next three years, with immediate growth underway in Louisville, Kentucky, and Milwaukee. Further expansion will target such new markets as the Carolinas, and continued growth will occur in states where Taco John’s does not yet have a huge presence, such as in Utah, Missouri, Washington, Michigan, Arkansas, Kentucky and Nevada. With its corporate office in Wyoming and a new franchise operations headquarters in Minneapolis, Taco John’s is also benefitting from the recent hire last year of the former vice president for Arby’s to undertake COO duties and assist with expansion goals.
A&W Restaurants will be targeting new unit growth in more rural and tertiary communities throughout the upper Midwest, especially throughout Wisconsin, Michigan, Minnesota, Ohio and Iowa. Additional new units are expected in the northern inland regions of California, and in Niagara Falls, New York, as well as in the Carolinas, Nevada and Florida. Expect the drive-thru restaurant to be especially keen on opening new units near roadside rest centers along major highways.
