SAN DIEGO—From 99 Cents Only Stores to the Whole Foods grocery users, there were a dozen different grocery type concepts attending the ICSC conference in San Diego. That is according to CBRE VP, Barbara Armendariz, who we spoke with as part of our retail coverage surrounding the event.
According to Armendariz, “Overall the Southern California Big Box inventory has remained relatively low with vacancy rates of less than 4% in Los Angeles and Orange County.”
She explains that “While we've experienced retailers that have come and gone such as Haggen, the grocery sector is actively competing for market share. Smart & Final and Aldi are among the most active users and new concepts are currently evaluating the Southern California trade area for expansion.”
Also during the ICSC event, Tim McGee, president and CEO of ICSC, based in New York, talked a little bit about how the retail industry is helping to drive the US economy. “It helps to take a step back and look at the size and scale of this industry,” he said. “Approximately one in 11 jobs are shopping center related. The money spent at shopping centers represents 15% of our GDP. ICSC members represent 15% of the Fortune 100 and are the largest employers in 21 states. Almost 50% of neighborhood shopping centers are occupied by locally-owned businesses. Shopping centers give back to the community. Shopping centers generated $193 billion in state and local public revenue.”
With all those facts, he said, “you should be proud of the industry you are in.”
But he explained that from a perception standpoint, perception doesn't match the reality. “Retail sales totaled nearly $5 trillion in 2015. The perception is that Amazon dwarfs brick and mortar competition. The reality is that Amazon is still a small percentage of the market. Yes, it is a big deal, but it isn't taking over the world.”
But no one can dispute that there are changes in our economy, he told the audience of nearly 4,000 at a luncheon presentation on Wednesday. “Major trends are impacting our industry (technology, omnichannel, click & collect, mobile apps, demographics, millennials, silver economy 65 plus, urban density, experience, food & beverage, healthcare and entertainment). But it isn't bricks versus clicks…It is bricks and clicks. It is just perceived wrong.”
SAN DIEGO—From 99 Cents Only Stores to the Whole Foods grocery users, there were a dozen different grocery type concepts attending the ICSC conference in San Diego. That is according to CBRE VP, Barbara Armendariz, who we spoke with as part of our retail coverage surrounding the event.
According to Armendariz, “Overall the Southern California Big Box inventory has remained relatively low with vacancy rates of less than 4% in Los Angeles and Orange County.”
She explains that “While we've experienced retailers that have come and gone such as Haggen, the grocery sector is actively competing for market share. Smart & Final and Aldi are among the most active users and new concepts are currently evaluating the Southern California trade area for expansion.”
Also during the ICSC event, Tim McGee, president and CEO of ICSC, based in
With all those facts, he said, “you should be proud of the industry you are in.”
But he explained that from a perception standpoint, perception doesn't match the reality. “Retail sales totaled nearly $5 trillion in 2015. The perception is that Amazon dwarfs brick and mortar competition. The reality is that Amazon is still a small percentage of the market. Yes, it is a big deal, but it isn't taking over the world.”
But no one can dispute that there are changes in our economy, he told the audience of nearly 4,000 at a luncheon presentation on Wednesday. “Major trends are impacting our industry (technology, omnichannel, click & collect, mobile apps, demographics, millennials, silver economy 65 plus, urban density, experience, food & beverage, healthcare and entertainment). But it isn't bricks versus clicks…It is bricks and clicks. It is just perceived wrong.”
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