LAS VEGAS—The retail sector is once again proving its remarkable adaptability and resilience, even as it faces macroeconomic headwinds and ongoing challenges in talent recruitment. This was the central message from CBRE leaders Todd Caruso, Laura Barr, and Aylin Gucalp, who spoke with GlobeSt.com during the ICSC conference in Las Vegas.
Todd Caruso, Americas Retail Investor Leader at CBRE, emphasized that retailers are recalibrating rather than retreating. Despite concerns about tariffs and rising operational costs, Caruso highlighted the enduring strength of U.S. retailers. He pointed out that retailers have consistently shown resilience during significant economic shifts. Instead of slowing down on new store openings, many are accelerating the closure of underperforming locations and strategically adjusting sourcing and supply chains.
Caruso also observed that big-box retailers, in particular, demonstrate impressive flexibility by adapting their store formats to meet changing market demands. This adaptability has enabled them to reach new customers and expand into previously untapped markets. At the same time, about 20% of U.S. retail centers are undergoing repositioning or renovation, although rising construction costs are causing delays. Nevertheless, Caruso is confident that these efforts will continue as owners strive to maintain relevance and value in a rapidly evolving retail landscape.
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He also noted that certain segments—such as drugstores, dollar stores, and casual dining—are now experiencing steady closures after years of rapid expansion. This trend affects net lease valuations and creates challenges in backfilling vacant spaces, prompting owners to seek creative solutions.
While the physical side of retail continues to evolve, Laura Barr, CBRE’s Americas Retail Leader, pointed to a different but equally pressing challenge: human capital. Barr explained that finding quality talent and planning for succession has become especially difficult. The combination of an aging workforce and reduced hiring after the Great Financial Crisis and the COVID-19 pandemic has left significant long-term gaps in the industry’s talent pipeline. She also noted that the misconception that retail was “mortally wounded” led to underinvestment in recruiting and developing new professionals, a decision whose consequences are now being felt throughout the sector.
Barr urged current professionals to help change the narrative and embrace mentorship, emphasizing that there has never been a more compelling time to enter the retail industry. She stressed the importance of guiding the next generation forward.
Aylin Gucalp, CBRE First Vice President, sees growing momentum in experiential and contemporary retail in New York and across the country. She expressed excitement about the intersection of consumers’ desire for experiences and the expanding fitness and wellness sector, which now encompasses mindfulness and longevity. CBRE actively supports the growth of brands like Othership, Jaybird, and Myodetox as they expand or scale in the U.S.
Gucalp also highlighted the ongoing rise of contemporary brands on major U.S. high streets. While the luxury sector is stabilizing, a new wave of accessible, stylish brands such as Rails, Ganni, Staud, and Toteme are attracting younger consumers and revitalizing iconic shopping corridors like Madison Avenue.
Check back with GlobeSt.com for more insights from the ICSC Las Vegas show floor.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
