Retail's Bifurcated Revival

THERE IS A PAGE IN OURMAPPING THE Changes to Retail guide that is very telling. It looksat retail categories that are struggling and why. But then abouthalfway down the page there is another data point to read about:why retail is gaining despite the record store closings. And makeno mistake—stores still are closing despite the phenomenal changesunderway in retail overall. Indeed, in a recent report UBS foundthat another 75,000 stores needed to close by 2026 to account forthe inroads that e-commerce will make in physical retail. But asMarcus & Millichap wrote for this piece, “While closed storesmay hurt some owners in the short term, longer-term effects of moreefficient retail business models will be beneficial.” For example,Marcus & Millichap went on to note: when a retail opens aphysical location within a market, web traffic in that areatypically increases by 37%.

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Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.