Every month, we reach out to retail industry leaders in order to gain their perspective on the market. This month, we asked: Are there any new retail tenancy trends that you are particularly excited about as we enter into 2024, and why?
Craig Kopko, EVP of Development, WMG Development
We will see a continuation of retail brick-and-mortar locations opening this year, specifically for those retailers that had sales bounce back quickly post-pandemic or were fortunate enough to see high sales growth through the pandemic.
We are also seeing the return of big-box discount retailers like Walmart and Costco, and sporting goods stores like Dick’s Sporting Goods and Academy Sports. Some of these retailers haven’t expanded with as much velocity since the Great Recession. The byproduct of the large format retailer growth is increased opportunities for smaller users to go to the inline or outparcel spaces created by these developments, fueling the growth of banks, QSR, retail medical and sit-down restaurants.
Jeff Axtell, EVP of Development, Vestar
This year, we anticipate that omnichannel trends in retail will continue to evolve as customers become more and more tech-savvy. Omnichannel platforms provide customers with a seamless transition between online and in-store shopping experiences, including targeted promotions, BOPIS (buy online and pick up in store) functions, easy returns and more, all while maintaining their brand image and level of service.
Over the past five years, retailers tell us they have also found that both online and in-store sales have significantly increased when a brick-and-mortar store is located within the same market as the shopper. Customers who shop on an app or online have established a brand connection and typically find themselves making additional in-store purchases following the original transaction. With the rising trends of integrating AI and retail — including virtual try-ons and interactive displays — we expect to see retailers continue to innovate in the coming years. As a developer, we want to ensure we are providing our tenants with a platform that meets the needs of their business so they can be successful.
Beth Azor (aka “The Canvassing Queen”), CEO, Azor Advisory Services, Inc.
The retail trend I am most excited about is our industry’s recognition and acknowledgement of the local provider. “Shop local” has become a new strategy for many retail property owners. Local retailers bring merchandise which is unique to communities and represent different cultures.
Along with “shop local,” landlords are now understanding that pop ups also bring excitement and character to their projects — this has been a long time coming in our industry! It’s good for the customers, the community, the entrepreneurs and the shopping center!
