Every month, we reach out to retail industry leaders in order to gain their perspective on the market. This month, we asked: Which retailers/restaurant brands do you predict will be “hot” as we head toward 2024, and why?
Ami Ziff, Managing Director, National Retail, Time Equities, Inc.
The current retail environment is changing so fast that the hottest retailers in the future could very well be brands we have never heard of today. While the consumer is still largely spending and retail sales are expanding, the inflationary pressures Americans are feeling and potential risks of a recession will likely shift focus towards value retailers, which I predict will see the largest growth in market share throughout 2023 and 2024.
James Bohnaker, Senior Economist/Head of Retail Research, Cushman & Wakefield
We are seeing a pretty diverse mix of tenants that are expanding in the market, and the most active have been the discount retailers, such as the dollar stores, which cater to that value customer. Anytime you enter into this type of economic environment, you’ve got people dealing with inflation and trying to manage their budgets a little bit better, so we’re seeing those types of tenants be really active. But it’s also interesting at the other end of the spectrum because the higher-end retailers and restaurant segments are also really strong, so your upper-end households have that pent-up demand to get out and socialize.
Grant Gary, President, The Woodmont Company
You can’t discount the growth of the drive-thru space. At the same time, I think you’re seeing a resurgence of the local, regional operator. While the chains are still very active in the younger, urban demographic markets, this customer base is moving away from the chains and toward something with more authenticity, which I think is becoming a hot trend. It’s a balancing act, because those local, regional operators are tougher to finance. So, the future direction will be to find this blend in which we can partner with a sophisticated restaurant operator that can develop a more local, regional concept.
Fred Battisti, Chief Revenue Officer, First National Realty Partners
We will continue to see discount retailers, such as Five Below and pOpshelf, expand their footprint. In addition to discount, the junior box activity for backfills of Tuesday Morning, Bed Bath & Beyond and Party City is very competitive. Vacancy rates throughout the country are at an all-time low, which is driving the rents and the depth of retailers for those boxes. Discount apparel retailers, such as Ross Dress for Less, T.J. Maxx and Burlington, as well as fitness, entertainment and “eatertainment,” are all vying for those boxes.
