Which retailers are still growing despite the current market challenges? It’s not a matter of opinion.
As we see big box retailers struggling and even going bankrupt, other retailers are thriving. So, what’s the difference?
GlobeSt.com caught up with Franklin Street
director Reid Mason
and senior director Bryan Belk
to discuss these issues in part two of our exclusive interview. You can still read part one: Insight: When Big Boxes Become Smaller Boxes
The retailers that you are not seeing impacted by e-commerce and the “Amazon affect” are discount retailers, such as TJ Maxx, Marshalls, HomeGoods, Burlington, Hobby Lobby, Ollie’s and Bargain Hunt. These concepts are bringing consumers to brick-and-mortar stores and these are the box users that are actively expanding.
The other sector that seems to be backfilling these vacant boxes are your value gyms such as Planet Fitness and Crunch. These groups will take second generation boxes and even new construction in certain scenarios. The pool of active box users seems to be shrinking, which means you have to get creative and sharpen your pencil when looking to backfill these spaces. Belk:
You’ve got to find creative ways to get people to come to your shopping centers and bringing in entertainment users is a good way to do that. Recent popular users that have been doing that are tenants such as Main Event or Catch Air. We’re seeing families make visits to indoor play areas like those, then they’re getting a meal in the shopping center and shopping around all in one trip, which is beneficial to all tenants.
All those elements mix well together. Owners are getting a little bit more creative at going after those types of tenants as opposed to your typical retailers that are going out of business, like the Payless Shoes, Gander Mountain or HHGregg’s of the world.