As traditional retail stores close and vacancies mount, landlords across the country appear newly receptive to leases as short as a week, eschewing the typical 10-year time frame, even in locations that once shunned limited stays.
The upswing in pop-up stores, as the short-term placements are called, is playing out in all sorts of ways, and in all sorts of places — including dark malls, former grocery stores and shuttered art galleries, according to real estate brokers, landlords and tenants.
For retailers, the stores can offer lower rents and far less commitment. For the landlords, the reason is just as clear: A short-term tenant is better than no tenant at all.
“Landlords have their backs against the wall right now,” said Samantha Elias, the co-founder of the Vintage Twin, a secondhand clothing company whose stores frequently pop up in Manhattan. “I tell them that some money is better than no money, and I promise not to bother you.”
View entire article here in New York Times.
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A new research report from Fung Global Retail & Technology, an international think tank that follows retail and technology trends, uses hard data to outline what retail property owners and managers already know—store closing announcements this year have been off the charts.
Fung Global researchers found that year-to-date in 2017, store closing announcements in the U.S. increased by 97 percent year-over-year, to 3,296 locations. The majority of retailers closing stores are typical mall tenants—department store operators and apparel and electronics sellers. The chains with the highest number of announced store closings, for example, include apparel retailer Rue 21 and shoe seller Payless Inc., each with 400 closings apiece. Apparel chain The Limited comes in third, with 250 announced store closings.
Read entire article here in National Real Estate Investor.
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Store design plays a crucial role in attracting customers and driving foodservice sales in convenience stores.
That’s according to the new study, Food-Forward C-store Design, which comes as more convenience retailers are pursuing foodservice as a growth opportunity.
The report, from foodservice research and consulting firm Technomic and retail branding and design agency Chute Gerdeman, was undertaken to understand how evolving consumer demands and preferences for prepared foods and beverages can be met through convenience store design, décor, and layout.
“Foodservice is now a strategic priority for the majority of convenience retailers, and the competitive landscape requires them to raise the bar on store design to increase consumer appeal,” said Donna Hood Crecca, associate principal at Technomic.
The interactive survey of 1,000 consumers revealed insights about the role of store layout and design elements in the success of convenience foodservice programs. Key takeaways include:
Retail landlords are on edge. Their tenants in malls across America are reporting awful revenues and earnings, and they’re shuttering stores, and some are going bankrupt. And they’re all getting their clocks cleaned by ecommerce.
Ecommerce sales in the first quarter jumped 15% from a year ago to $86.3 billion, not seasonally adjusted, or $92.8 billion seasonally adjusted, the Census Bureau reported today. They accounted for 7.7% of total retail sales. Over the last four quarters, ecommerce also jumped 15%, to 354.3 billion.
Meanwhile, much of brick-and-mortar retail is stuck in a quagmire. Total retail sales inched up 3.3% year-over-year. A third of that “growth” was inflation as measured by CPI. Another third was the impact of ecommerce.
This chart shows quarterly ecommerce sales on a seasonally adjusted basis. It’s an impressive trend:
Read entire article here in Business Insider
Men, rejoice. Your dreams might be coming true, all thanks to your desire to never leave your house. A new study from Business Insider Intelligence confirms that men are doing a lot of shopping online. So men are thereby helping drive malls into the ground, which are already struggling on multiple counts.
“When it comes to e-commerce, men drive nearly as much overall spending online in the US as women. The conventional wisdom is that women drive shopping trends, since they control up to 80% to 85% of household spending,” BI Intelligence reports.
And it turns out, more men than women would prefer to never have to leave their houses to shop — especially these guys.
The report noted that 40% of men ages 18-to-34 “would ideally buy everything online.” Women, on the other hand, seem to still care for traditional in-store shopping experiences at times with only only 33% of women agreeing they feel the same.
View entire article on Business Insider website here http://www.businessinsider.com/men-shop-online-more-frequently-than-women-2016-2