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?
Spence Mehl, Partner, RCS Real Estate Advisors
Retailers like Lululemon, Kroger and Costco have historically been successful and are likely to continue being successful for three main reasons: product quality, consistent price and brand loyalty. For example, not only does Lululemon provide high-quality clothing, its items rarely go on sale. This builds trust with the consumers, who recognize that they are getting the best deal on these items, in contrast to shopping with competitors, where an item will eventually go on sale. Grocers like Costco and Kroger have a different strategy, selling their products consistently at near cost. Again, consumers learn to trust the prices, knowing they are getting high-quality items at the best price.
Brandon Isner, Americas Head of Retail Research, CBRE
QSR restaurants will continue to thrive, as they’ve quickly adapted to the reality that mobile devices are the future of e-commerce. People could also return to brands which make them feel comfortable. Additionally, fast-casual restaurants with a limited menu are performing well. Rather than 100 things on a menu which might lag in quality, these restaurants specialize in a smaller menu, ensuring that the quality is high. Also, chef-driven “destination” restaurants should perform well in areas which draw tourism.
