Sell for More News is a weekly blog series with interesting information from the world of commercial real estate.
It’s official…you’re no longer allowed to say the words “retail apocalypse.” It turns out there will be a place for brick and mortar stores in our future after all.
Over the last three years, thousands of stores shuttered and dozens of companies went bankrupt. Companies like Toys R Us, Gymboree, Payless, Wet Seal, The Limited, HH Gregg, Radio Shack, Gordmans, Gander Mountain, Claire’s, Aeropostale, Sports Authority, and Bon-ton to name a few.
Fortunately, 2018 didn’t turn out to be nearly as painful as 2017. In 2018, about half as many stores closed as the year before. 2018 also saw startups experimenting with their own take on stores. And large real estate companies got serious about rethinking how malls should be designed.
In 2019, we predict that property owners, brands and consumers will settle into a new normal with stores. Digital and physical shopping will get more seamless.
For example, many startups have recognized that stores can be a huge asset because they have the power to deepen the customer’s relationship with the brand. Look for that that trend to continue. Many will leverage pop-up shops (which are here to stay). Casper, for example, has announced plans to open 200 stores.
The key to understanding this “new normal” is understanding that these stores won’t look like stores you found in malls of the past. Instead, they’ll be designed to complement the digital experience. They’ll be small. They’ll hold very little inventory. Brands expect customers to come into the store to check out products, but purchase the product online. And many brands will also use the stores as a place to forge a strong sense of community by hosting talks, parties, and other gatherings there.
Also, look for brands to make it easier to buy products and services directly on social media. Expect more imagery with a clear call to action like…swipe up to purchase the product.
In conclusion, expect retailers to drive customers to their website and to use brick and mortar stores to enhance the experience. They’ll also increasingly focus on making sales directly through social media. Retail is far from dead…it’s just transforming.
How much is your property worth? Find out now…plus get the step-by-step blueprint to sell your property for the absolute highest price the market will pay, free (click here)
Get an unfair advantage. Get exclusive weekly benefits by joining Sell for More Club (join now)
Pop the champagne. Our clients celebrate when their sale closes…and we supply the champagne. Click here to schedule a no pressure call to get started.
About Beau Beach, CCIM
Beau is a tenacious Commercial Real Estate Broker, author and adoring father of four. His clients appreciate his no-nonsense demeanor and his legendary work ethic.
Beau leads Prowess IRES which is a commercial real estate broker for sellers in the Nashville, Milwaukee, South Florida and Chicago markets.
He’s the author of the books The 3 Reasons: Why Most Commercial Properties Don’t Sell and True Wealth: What Every Seller Should Know About 1031 Exchanges.
Beau can be reached at 414.324.4938, 615.603.9770, click to schedule a call or Beau@ProwessIRES.com