We’ve all been hearing about retail closings that are sweeping our nation. It’s a “retail apocalypse” with record-breaking closings in 2017 and 2018 on track to set a new record. But the news isn’t all bad. There are still certain retail categories that are growing and several brands are opening new stores. Here’s a look at the type of retail development that’s continuing to thrive in spite of the retailpocalypse.
With so many customers shopping online now, quite a few retailers are switching to small-format brick-and-mortar stores. These stores support the online shopping experience and give customers a chance to check out the products in-person. They act as a hub for in-store pickup, easy returns, and local delivery. Target, one of the few retailers actually expanding in 2018, expects to open 35 of these small-format stores this year.
Off-price stores continued to expand even during the record-breaking closings of last year. Discount brands like T.J. Maxx, Marshall’s and HomeGoods are thriving. Dollar General and other dollar store are expanding all across the US. And deep-discount stores like Ollie’s Bargain Outlet are also opening new stores. These aren’t just small-format stores either. They’re moving into large retail spaces that are new or newly vacant.
At the other end of the spectrum, the high-end retail sector is also growing. Brands that started off online like Birchbox, Bonobos, Brilliant Earth, and Warby Parker are starting to open brick-and-mortar stores for the first time. The information gathered from their online customers lets them target retail expansion to locations where they already have a customer base. The ability to zero in on their best markets makes expansion a less-risky prospect for these retailers.
Even though more and more websites offer online shopping for groceries, these sites still can’t beat a grocery store for convenience. People want to inspect their produce before they purchase it and they want to make sure their perishable items don’t spoil in shipping. They might buy some items online, but brick-and-mortar grocery stores aren’t going away any time soon.
Another category that will continue growing is restaurants. In fact, restaurants are so popular that they can anchor other forms of retail. Some former shopping centers in Seattle, New York, and Denver are finding success with food-themed malls. Restaurants and specialty groceries act as the main draw to these shopping centers, attracting customers to other types of retail as well.
Whether you’re a community hoping to attract new retail growth or a retailer looking for the best place to expand, Retail Attractions can help. We have extensive experience working with developers and cities to create the best possible outcome for all interested parties. Contact us today to learn more.