Across the US, retailers are opening their doors, with new locations and brick-and-mortar growth initiatives in pursuit. Landlords report that demand for retail spaces has stayed strong throughout 2023, predicting that 1,000+ new net stores will open this year.
The retail industry has seen a reduction in commercial space availability, however, key players in the industry have proved that they know how to handle this challenge. Retailers are taking advantage of vacant spaces from liquidations of stores such as Bed Bath & Beyond and Christmas Tree Shop. Sectors including discount stores, grocers, home-goods stores, bookstores and apparel companies have expressed interest in the former real estate of bankrupt retailers.
The demand for brick-and-mortar is evident, fueled by strategic shifts and key consumer behavior patterns. One major shift being from digital to physical. Digitally-native companies have started opening brick-and-mortar locations after realizing the limitations of online customer acquisition.
Retail sales in July 2023 increased 0.7% from the previous month, according to Commerce Department data. This marks the fourth consecutive month of increased spending.
Another trend among retailers is expanding to suburban areas. With the benefits of remote work, consumers are more likely to shop during the week – leading fast-casual restaurants and retailers to relocate from urban business districts to the suburbs.