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

Miami /
May.May 04, 2017 08:45 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
Nautical Ventures Marine CEO Roger Moore and Holman Automotive CEO Brian Bates with 1400 South Federal Highway (Google Maps)

Holman sells former Fort Lauderdale BMW dealership for $6M

Holman sells former Fort Lauderdale BMW dealership for $6M
Rendering of the Dorsey with Alex Karakhanian, Jon Paul Perez and Tricera’s Scott Sherman and Ben Mandel (iStock)

Related scores $88M construction loan for Dorsey project in Wynwood

Related scores $88M construction loan for Dorsey project in Wynwood
12301 West Sunrise Boulevard with Raanan Katz, Bob Barth, Zach Zalben and Stanley Black (Google Maps, Linkedin, Getty)

Miami Heat minority owner continues Best Buy shopping spree with $12M Plantation deal

Miami Heat minority owner continues Best Buy shopping spree with $12M Plantation deal
From top: Ruben Lujo from Broward Meat, SunCap's Scott Auker and Ross Realty's Barry Ross with Penn Dutch Plaza shopping center in Margate (Linkedin, Google Maps)

Part of Margate shopping center formerly anchored by Penn Dutch sells for $12M

Part of Margate shopping center formerly anchored by Penn Dutch sells for $12M
Costco CEO Craig Jelinek and 8300 Park Boulevard, Miami (Costco, Google Maps, iStock)

Costco sells site near Doral to Trammell Crow for $19M

Costco sells site near Doral to Trammell Crow for $19M
(Google Maps)

Here are South Florida’s biggest retail leases in 2020

Here are South Florida’s biggest retail leases in 2020
(Getty)

Here are South Florida’s largest retail sales of 2020

Here are South Florida’s largest retail sales of 2020
Alex Rosemurgy and 2350 to 2390 North Federal Highway (Twitter, Google Maps)

Rosemurgy sells Pompano Beach shopping center for $10M

Rosemurgy sells Pompano Beach shopping center for $10M
arrow_forward_ios

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

Loading...