The headlines in the news highlight the negatives, closings, bankruptcies and daily changes in the retail market but the International Council of Shopping Center (ICSC) Conference has proven that brokers know retail is here to stay.
What’s going on in Retail?
Many of the main takeaways from the ICSC Conference were focused on the ever-changing retail market and the elements impacting it. One of the biggest factors contributing to the changing demand and the growing rate of closings and bankruptcies is e-commerce and the ever-evolving needs of consumers over the years.
They are no longer drawn to any old store. Consumers want a new, engaging and compelling shopping experience. Typical retail stores are fighting to find that balance of the new demand and technology advances within the market. Some are excelling and others are falling behind. Friedman’s Alan Stern, Vice President, Brokerage Services, who attended this year’s ICSC Conference explained, “many retailers commented on having to excel in excellent customer service, providing great customer experience, definitely maintaining brick n mortar but with innovative products. Everyone is still very concerned about the ever-expanding e-commerce business.”
With changes in consumer’s wants, the idea of retail is changing before our eyes. There has been a growing influx of demand for retail concepts focused on entertainment and experimental. The demand for mid-priced apparel has taken a blow in the retail market with a mass of closures, while the demand for discount and lower priced retailers are hitting record sales and the demand for retail sites for the discount and lower price retailers are filling in the vacancies left behind from the mid-priced apparel companies.