The Rise and Fall of Retail Tenants
What will become of our nation’s retail space? The Wall Street Journal reported a few days ago that retailers are shrinking their store footprints due to an increasing pressure of reduced sales caused by an increase of online purchases. The decline will continue for many retailers, but will affect a greater number of retail spaces outside of major urban centers. Retailers will retain brick and mortar outlets in urban cores to act as an extension of their brand for advertising purposes and to serve as a showroom for their customers to experience products before they are purchased online. Retail locations across the country will gradually shift to rely on service industry tenants (barber shop, nail salon, astrologists, etc.) As the new generation’s disposable income increases, there will be a greater increase of purchases online due to a level of comfort with the Internet. Simultaneously as the baby boomers age they will find a greater convenience to order products from the Internet due to limited mobility.