LAS VEGAS—“While omni-channel retail has been a trend for many years, we've finally reached the point where retailers have realized that omni-channel is not the enemy and are implementing practical, effective strategies for merging bricks and clicks.” So said Tom Buxton, president and CEO of Buxton. In some cases, Buxton said, merging the channels means realigning the store network to better capture traditional sales and fulfill online orders.
“These 'rightsizing' efforts position the retailer to maximize sales in existing markets,” he continues. “Ultimately, the retailers who truly know who their customers are will be more successful at merging channels and maximizing sales through better real estate, marketing, and operations decisions.”
Today's retail real estate professionals aren't just looking for new sites, Buxton tells GlobeSt.com. “They are also closely examining the performance of existing locations to identify candidates for relocation or closure. In today's highly competitive retail market, each real estate decision is an important investment and an increasing number of retailers are taking a thoughtful, analytical approach to site evaluation.”
CallisonRTKL Senior Vice President Jeff Gunning, based in the Dallas office, also spoke with GlobeSt.com about how nearly all of its retail clients are shifting their focus from omni-channel to omni-presence. “It's about always being there, versus changing channels,” he recently told GlobeSt.com.
When chatting with Naveen Jaggi, president of retail brokerage at JLL, he said that retailer activity is dominated by value, food and beverage, service, and entertainment uses. “The quest for the elusive truly omni-channel grail continues to impact capital expenditures for many retailers as they try to solve the 'last mile' equation and real-time inventory optimization.”
The good news for retailers, Jaggi continued, is that “consumer spending was up in 2016 compared to the prior year, unemployment remains low, and consumer confidence is at its highest levels since the Great Recession.”
This, he said, “is counterbalanced by the reality that as an industry we are likely still over-stored compared to the new consumer paradigm. I still foresee a continued rationalization of retail space across the US, lasting into 2018-2019. The most impacted by this will likely be secondary and tertiary markets as things continue to shake out.”
Jaggi tells GlobeSt.com that “The retail business is in the 'last act of a three-act play' and I see this current rash of closures as the last step in the retail industry coming to grips with the ramifications of the Great Recession.”
For other thoughts from experts who attended the ICSC RECon event here in Las Vegas and to learn more about panel coverage from the event, check out the articles below.
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Retailers Now Have Tremendous Options in “New Submarkets”
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VEREIT Recognizes Top Leasing Brokers at ICSC RECon 2017
A Closer Look at Leasing Financials, Retailers Resiliance
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DDG Talks Retail Landscape Shift, New Opportunity
Will Negativity in Retail Continue Until Sears Falls?
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LAS VEGAS—“While omni-channel retail has been a trend for many years, we've finally reached the point where retailers have realized that omni-channel is not the enemy and are implementing practical, effective strategies for merging bricks and clicks.” So said Tom Buxton, president and CEO of Buxton. In some cases, Buxton said, merging the channels means realigning the store network to better capture traditional sales and fulfill online orders.
“These 'rightsizing' efforts position the retailer to maximize sales in existing markets,” he continues. “Ultimately, the retailers who truly know who their customers are will be more successful at merging channels and maximizing sales through better real estate, marketing, and operations decisions.”
Today's retail real estate professionals aren't just looking for new sites, Buxton tells GlobeSt.com. “They are also closely examining the performance of existing locations to identify candidates for relocation or closure. In today's highly competitive retail market, each real estate decision is an important investment and an increasing number of retailers are taking a thoughtful, analytical approach to site evaluation.”
CallisonRTKL Senior Vice President Jeff Gunning, based in the Dallas office, also spoke with GlobeSt.com about how nearly all of its retail clients are shifting their focus from omni-channel to omni-presence. “It's about always being there, versus changing channels,” he recently told GlobeSt.com.
When chatting with Naveen Jaggi, president of retail brokerage at JLL, he said that retailer activity is dominated by value, food and beverage, service, and entertainment uses. “The quest for the elusive truly omni-channel grail continues to impact capital expenditures for many retailers as they try to solve the 'last mile' equation and real-time inventory optimization.”
The good news for retailers, Jaggi continued, is that “consumer spending was up in 2016 compared to the prior year, unemployment remains low, and consumer confidence is at its highest levels since the Great Recession.”
This, he said, “is counterbalanced by the reality that as an industry we are likely still over-stored compared to the new consumer paradigm. I still foresee a continued rationalization of retail space across the US, lasting into 2018-2019. The most impacted by this will likely be secondary and tertiary markets as things continue to shake out.”
Jaggi tells GlobeSt.com that “The retail business is in the 'last act of a three-act play' and I see this current rash of closures as the last step in the retail industry coming to grips with the ramifications of the Great Recession.”
For other thoughts from experts who attended the ICSC RECon event here in Las Vegas and to learn more about panel coverage from the event, check out the articles below.
How Foodie Culture Has Changed the Way Brokers Think
Attract the Retail Store of the Future to Your Community Now
Retail Expert: The Future is the Carful Curation of Space
What Brick and Mortar Retailers Need to Do
Caruso's Key to its Success, What Retailers are Looking for
A Closer Look at Retail Lending, Investment
Retailers Now Have Tremendous Options in “New Submarkets”
Experts at ICSC's RECon Say It's All About Fitness, Beauty, Food and Service
Will Food Halls be Retail's Hottest Growth Story?
Food and Beverage's Role in New Real Estate
Authenticity Is Critical to Food Hall Development
Upclose With Franklin Street at ICSC's RECon 2017
VEREIT Recognizes Top Leasing Brokers at ICSC RECon 2017
A Closer Look at Leasing Financials, Retailers Resiliance
Top of Mind Topics from ICSC's RECon 2017 Conference
DDG Talks Retail Landscape Shift, New Opportunity
Will Negativity in Retail Continue Until Sears Falls?
Is Retail Being Painted With Too Broad a Brush?
How Brick and Mortar Will Leverage Data and Analytics
New Power Couple: How Retailers and Retail Destinations Communicate
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