Internet savvy consumers have reshaped the retail landscape, and, in response, investors are demanding that retailers rethink their real estate strategies.
For instance, in the past, most retailers just needed an approximately 1,500-square-foot store in an “A” mall to run a successful business. But today, there is a lot more to consider, according to Forbes.
Big-box retailers that continue to see their share of online business grow, such as Best Buy and Staples, are beginning to squeeze into smaller spaces. Meanwhile, lifestyle brands, like Destination XL, an apparel shop serving big and tall men, are taking larger spaces and adding wider aisles, larger fitting rooms, sofas and flat-screen televisions, to provide a sense of luxury.
Alternatively, some apparel brands are creating exclusive-feeling stores by using smaller floor plates and offering fewer duplicate products in their shops.
The upshot for retail brokers is, according to Forbes, that there is no longer any one size fits all solution for retailers. [Forbes] – Christopher Cameron