Retail will be “smaller but healthier” in 5 years: Sternlicht

Starwood Capital CEO said companies will have to trim their boardrooms as they close stores

TRD LOS ANGELES /
May.May 04, 2017 10:30 AM

From TRD New York: Retailers are closing stores across the city and the country, and in the end the industry will be better off for it, Starwood Capital Group’s Barry Sternlicht said.

“A lot of retailers don’t know how to behave in this environment, and they’re panicking,” Sternlicht told Bloomberg. “I see the tenants in my malls that get it, and the ones that are as confused as can be.”

Manhattan saw a net loss of 24 chain stores last year, and Ralph Lauren’s decision to close its Fifth Avenue flagship store is just the latest in a long line of talking points on the struggling retail industry and the overheated retail real estate market. The borough’s retail availability grew nearly 25 percent during the first quarter of the year.

Sternlicht, whose company owns shopping malls across the country, said that in five years the nation’s retail landscape will be “smaller but healthier” as remaining stores have less competition, Bloomberg reported.

He pointed to companies like CVS Health Corp. and Estee Lauder – where he sits on the board – as examples of retailers that are bucking the trend and actually growing. And as companies downsize their bricks-and-mortar footprints, Sternlicht said it’s just as important that their corporate headcounts are appropriate to the new landscape.

“This slow death of cutting stores doesn’t always work, unless they cut corporate,” he said. “That’s much harder to do.” [Bloomberg]Rich Bockmann


Related Articles

arrow_forward_ios
Prop 15 property tax measure draws millions (Credit: iStock)

Prop 15 property tax measure draws millions of dollars from for and against campaigns

Prop 15 property tax measure draws millions of dollars from for and against campaigns
California is allowing barbershops and salons to reopen under new coronavirus mitigation guidelines (Credit: Noam Galai/Getty Images)

California allows barbershops to reopen, but LA holds back

California allows barbershops to reopen, but LA holds back
LA County assessor Jeffrey Prang

LA County properties valued at nearly $2 trillion…before pandemic

LA County properties valued at nearly $2 trillion…before pandemic
First District Supervisor Hilda Solis (Credit: Rebecca Sapp/Getty Images)

LA County select reopening target date for restaurants and retailers

LA County select reopening target date for restaurants and retailers
Eric Garcetti orders a moratorium on LA commercial evictions (Photo credit: iStock photo)

Garcetti orders a moratorium on commercial evictions in LA

Garcetti orders a moratorium on commercial evictions in LA
1960 Grand

Starwood, Artisan pay $127M for El Segundo building

Starwood, Artisan pay $127M for El Segundo building
CA warehouse rentals for e-commerce is booming, according to survey

SoCal developers see boom & bust in different markets in 2022

SoCal developers see boom & bust in different markets in 2022
LA promo

Coming Soon: The Real Deal Los Angeles’ Winter 2020 issue!

Coming Soon: The Real Deal Los Angeles’ Winter 2020 issue!
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...