Skip to main content

Three Positives in the Retail Space that Could Stick Around

 

For months now, retail headlines have been filled with scary stories about how the pandemic is threatening the shopping industry as we know it. Yes, it’s true that the pandemic is putting retail through the wringer, but it’s also initiating some long-pending changes.

While this period is hard for everyone, that doesn’t mean that everything coming into play as a result of this historic era will be negative. The fact is, more change has emerged during 2020’s first two quarters than we’ve seen in a very long time. Of course, it’s due to unfortunate and stressful circumstances, but we can’t ignore all the positive growth that’s happening right now... especially in retail.

Here’s how the pandemic is set to positively impact the retail sector and commercial property management moving forward:

 

Restructuring Inventory

 

As shoppers abandoned stores and purchased their goods online, it has forced retailers to reconsider how they’re using their physical space. “One important question to ask is, ‘Why do we need so much merchandise in a store?’” Sephora’s former CEO, Howard Meitiner, said to Chain Store Age.

Instead of packing multiples of every product into one store, the pandemic has pushed retail further into multichannel integration.

“People can buy online and pick it up in a store. Or they can go into a store and make a purchase and have it delivered at home”, Meitiner continued. “The blurring and integration of these lines shouldn’t matter to a company. You now need to serve every individual customer with an invisible linkage, not force them to buy the way they used to.”

There are so many options available for nearly instant deliveries, there’s no reason for retailers not to take advantage of today’s tech compatibility. Now that COVID forced retailers to start reconsidering in-store inventory, shopping is being modernized before our very eyes.

 

Leasing Done Differently

 

Throughout the pandemic, companies have announced plans to simultaneously close store locations and open others. A changing retail landscape is on the horizon, but CRE needs to support these adjustments. 

As retailers are reconsidering their physical footprints by adjusting their locations, warehouse leasing is set to change.

Tenants want more freedom to experiment, but they need the freedom to adjust as needed. Experts expect to see more cooperation and negotiations between landlords and retail tenants through creative leases that enable growth and optimization in the post-COVID world.

 

A New Playing Field

 

All in all, it’s clear that the pandemic is pushing retail forward. It’s important to remember that most of the conditions that retail brands are facing now aren’t solely a result of the pandemic. Many of the factors have already been in the works, and the pandemic only made them more apparent.

Retailers who were stalling on making changes were the ones who faced the most challenges during the pandemic’s sudden shifts, while pivot-ready companies could adapt more easily.

Meitiner commented on this factor, stating, “Digital disruption, changing behaviors of consumers, questionable viability of historically robust business models, the emergence of new players—those were all in place before the coronavirus happened. Good things come out of crises like these. It’s moved companies to achieve in a few months something that might have otherwise taken them five years”.

The pressure is on and the heat is cranked up high, but challenges are often what generate the very best results. Retail is in a difficult space right now, but it’s introducing significant benefits for the shopping industry as a whole.

Comments

Popular posts from this blog

4 CRE Trends We Can Attribute to Millennials

Today’s workforce is undergoing a major shift in population. As of 2017, 56 million Millennials are either working or actively searching for work , making them the largest segment of the U.S. labor force, surpassing Gen Xers in 2016 and this will eventually lead to an impact of office space needs and what companies are looking for with new office leases.   More than one out of every three American workers is a Millennial -- more than Gen Xers and much more than Baby Boomers. And, just as every other generation that came before them, Millennials pride themselves on marching to the beat of their own drum, if you will -- wearing different clothes, listening to different music, and working differently. The very idea of where and how we work is undergoing a revolution right now, with major changes being made in physical design and decor. Here’s a closer look at 4 CRE trends we can attribute to millennials… 1. Millennials prefer non-traditional workspaces   ...

NAI Emory Hill Sells Wilmington Shopping Center

  Wilmington, DE – NAI Emory Hill ( www.naiemoryhill.com ) is pleased to announce the sale of a 8,710 square foot shopping center located at 2308 Concord Pike in Wilmington, DE to The Wittig Family at DSM Commercial. Dave Morrison and Jim O’Hara Jr., of NAI Emory Hill, represented the purchaser and Seller in this transaction. This retail center is anchored by Mattress Firm, Green Drop and China Inn. The center is strategically located at the intersection of Sharpley Road and offers a great retail location along the busy Route 202 corridor. NAI Emory Hill is a completely full-service commercial and residential real estate firm serving Delaware and the surrounding counties of Maryland, New Jersey and Pennsylvania. Founded in 1981, we have the resources to design, build, finance, lease, sell, manage and maintain commercial and residential properties throughout the Mid-Atlantic . Learn more about our services at: www.propertymanagementdelaware.com www.emoryhillhomes.com

PropTech 101: What CRE Professionals Should Know

Everyone in the CRE biz has doubtlessly heard the term proptech getting thrown around. Whether it’s been in article headlines, on the web, or during business conversations; ‘proptech’ has officially integrated into the commercial real estate vocabulary. Unfortunately, there isn’t always an on-hand dictionary available to help novices decode the latest and greatest CRE lingo. While proptech popularity has surely skyrocketed during 2019, some of us still may be confused as to what exactly proptech is. We’re happy to clear up the confusion; covering what proptech actually is and why CRE professionals should care. PropTech Explained The moment you’ve been waiting for is here… when you finally get a concise definition of the term PropTech. According to real estate technology experts at Forbes , proptech is ‘the acronym used to describe any technology for the real estate space.’ If that’s not clear enough, here’s another universally-accepted explanation devel...