SHOPPING CENTER INSIGHTS BY JEFF DERVECHBlog

TJX Companies concluded the year with impressive earnings and sales figures that exceeded analysts’ expectations, driven by strong customer demand across all its store banners. The off-price retail powerhouse reported a net income of $1.4 billion for the quarter ending February 1, translating to earnings of $1.23 per share, slightly up from $1.22 per share in the previous year. Despite net sales remaining flat at $16.35 billion, they surpassed estimates of $16.21 billion. The company...

Digital transformation is reshaping the quick-service restaurant (QSR) industry by streamlining operations and enhancing customer experiences, with digital signage emerging as a pivotal tool in this shift. Its versatility allows QSRs to incorporate elements such as dynamic menus, interactive ordering, and engaging promotional displays, ultimately improving customer engagement and operational efficiency. By dynamically showcasing menu items and promotions, digital signage not only drives sales but also captivates customers, with studies revealing that over 80% of...

In January 2025, U.S. retail sales in core segments—excluding food, auto, and fuel—rose by 3.9% year-over-year, reaching a total of $234.88 billion, as reported by the U.S. Department of Commerce. E-commerce sales experienced a similar growth of 3.8% during the same period. Despite typically being a sluggish time for retailers, the January figures were viewed as impressive, particularly given the challenging winter weather that encouraged consumers to buy outerwear and warm clothing. The National Retail...

The potential of AI in the shopping landscape is immense. The author utilizes ChatGPT to locate the main water shutoff valve in their home. This experience illustrates how AI can facilitate daily tasks and hints at its future role in retail. By querying ChatGPT about a product, such as the Nike Pegasus 36 Trail running shoe, the author receives detailed, conversational responses that prove AI’s effectiveness as a shopping assistant. This interaction suggests that customers...

Chili’s impressive 30% increase in comparable store sales contrasts sharply with McDonald’s negative traffic counts, highlighting a shift in consumer dining preferences. Consumers are increasingly prioritizing overall experience, menu differentiation, and perceived value over affordability. This trend is reflected in the declining foot traffic in Quick Service Restaurants (QSRs) and the rise in Casual Dining, as consumers, including higher-income brackets, are opting for higher-quality experiences. Price compression between QSR and higher-tier dining segments has made...

The toy manufacturer Lego has been transforming its retail spaces into immersive experiences that draw in customers and create memories. According to Martin Urrutia, Lego’s head of global retail experience and innovation, physical retail spaces can be seen as a media channel, a place for storytelling, and a way for customers to engage with a brand. To achieve this, retailers must have fundamentals in place, such as stock availability, the correct physical location, and streamlined...

Chipotle Mexican Grill reported a strong fourth quarter for the end of 2024, highlighting its ongoing expansion both domestically and internationally. The company plans to open between 315 and 345 new locations in 2025, with over 80% featuring a “Chipotlane” drive-thru for digital orders. As part of its vision to establish 7,000 restaurants across North America, Chipotle is also focusing on international growth, operating 85 locations worldwide, including 55 in Canada, 27 in Europe, and...

The current discussion around Artificial Intelligence (AI) reflects a growing interest across various industries, with a notable emphasis on its inclusion in corporate earnings discussions. While many sectors are undergoing rapid transformation due to advancements in AI, the restaurant industry is lagging behind. This disparity can be attributed to two main factors: financial constraints and lack of specialized expertise. Unlike tech companies that can absorb significant losses in pursuit of long-term gains, the restaurant industry...

According to a recent American Customer Satisfaction Index study, customer satisfaction with online retailers dipped by 1% over the past year, reaching a score of 79 on a 100-point scale. The study, which is based on 41,850 consumer surveys, indicated that more than two-thirds of online retailers experienced declines in customer satisfaction compared to the previous year. Chewy, however, stood out as a leader in customer satisfaction, maintaining a score of 85 and holding the...

The restaurant industry has faced unprecedented challenges in the past few years, from supply chain disruptions to labor shortages, and the lingering effects of inflation. To adapt and stay afloat, independent operators must rapidly evolve and innovate to meet shifting consumer attitudes, preferences, and expectations. The future of the restaurant industry relies on utilizing cutting-edge technology to deliver value-driven, personalized customer experiences and maximize the human aspect of the dining experience.  Restaurants can adapt and...

Smoothie King had a highly successful 2024, achieving significant growth and expansion with a total of 84 new stores opened across 24 states. This marked an increase from the 81 stores opened in 2023, with a record-breaking 11 stores opened in December alone. Strong franchisee partnerships played a key role, with 68% of new agreements signed by existing franchisees. The brand also made notable strides in key markets, including Indianapolis, Dallas-Fort Worth, and Atlanta. The...

The retail real estate landscape in 2025 is shaped by evolving consumer behaviors, technological advances, and heightened competition for premium locations. Despite the growth of online shopping, physical stores remain integral, with brands facing increasing challenges to secure prime retail spaces. Trends have emerged in response to this competitive market, including the adoption of smaller and more flexible store formats, a focus on experiential retail, tailored geographical expansion strategies, and data-driven site selection. Retailers are...

Shake Shack is significantly expanding its presence in the U.S., now targeting at least 1,500 domestic locations, up from a previous goal of 450. The fast-casual burger chain plans to open 80-85 new restaurants in 2025, with 45 being company-operated and 40-45 through licensing. Since its first location in 2004, Shake Shack has grown to over 550 locations globally, including more than 350 in 33 U.S. states. CEO Rob Lynch, who took over in March,...

KFC launched a new spinoff concept called Saucy, which focuses on offering a variety of sauces, chicken tenders, and creative beverages. The first location opened in Orlando on December 23. Saucy features 11 unique sauces, inspired by KFC’s signature 11 herbs and spices, which can be paired with hand-breaded, made-to-order chicken tenders. The sauces range from Chimichurri Ranch to Sweet Teriyaki, allowing customers to experiment with over 4,000 possible flavor combinations. In addition to tenders,...

Both, restaurant and at home food prices are up 25% since the beginning of COVID 2020. The article discusses the impact of a 25% increase in food and restaurant prices on consumers, particularly those with lower incomes. This significant rise in prices, resulting in meals that were once $10.00 now costing $12.50, has broader implications beyond just low-income diners. Labor costs have also increased by 25%, further adding to the financial strain on restaurants. The...

Impossible Foods, a leading meat alternative brand, has recently launched its first brick-and-mortar foodservice concept called Impossible Quality Meats in Uptown Chicago. This pop-up concept offers a diverse menu of plant-based options, including appetizers, salads, wraps, burgers, and hotdogs. Operating from Aug. 13 through fall, the pop-up is open on Tuesdays through Sundays from 11 a.m. to 8 p.m. It is situated within Chicago’s XMarket Food Hall, managed by VEG House and leased through PlantX...

Darrell Huff’s influential book “How to Lie with Statistics” highlights the susceptibility of individuals to misleading information when interpreting statistics, emphasizing concepts like random sampling, correlation versus causation, and visual misrepresentation. This challenge of accurate interpretation extends to the commercial real estate industry, where traditional metrics like vacancy rates may not provide a comprehensive picture of the overall market. The discrepancy between vacancy rates and actual availability rates in the industry can significantly impact decision-making...

Health-forward restaurants are facing challenges as higher commodity and labor costs impact their profitability. Clean Juice, a health-focused juice bar franchise, has seen costs rise across various areas, including paper goods, meat, dairy, and produce. To address these challenges, Clean Juice has introduced marketing strategies focused on price, such as offering products for under $6 and a pick-two menu for under $13. The company is also working with franchisees to identify underpriced or overpriced items...

Walmart’s CEO, John Furner, highlighted the importance of convenience for consumers in the retail industry, emphasizing that saving time and reducing friction in their lives can outweigh price considerations. Furner noted the increasing demand for innovative solutions that streamline decision-making and enhance customer experience. He expressed optimism for the consumer health in 2024, despite challenges like inflation, citing early sales data that showed positive trends in spending on health and personal care products.  Furner also discussed...

Portillo’s, a Chicago-based brand led by CEO Michael Osanloo, is strategically focusing on expanding its presence in the Sun Belt region of the U.S., known for its warmer climates and lower taxes. With data showing significant population growth in counties in Arizona, Texas, and Florida, Portillo’s is directing 80% of its future growth efforts towards these states, particularly targeting areas like Phoenix, Houston, and Dallas-Fort Worth. The brand has seen success in Texas, with four...

Target announced the launch of its paid membership program, Target Circle 360, following in the footsteps of competitors like Amazon and Walmart. The program, set to debut in early April, will cost $99 per year with a promotional rate of $49 per year until May 18. Members will enjoy perks such as unlimited free same-day delivery for orders over $35, two free-day shipping, and other benefits aimed at boosting online sales and improving profits. Target...

Crumbl recently acquired the pie company Crust Club, founded by Tyler and Valerie Kukahiko in 2016. The acquisition was made because Crumbl resonated with Crust Club’s mission, which is similar to theirs, of bringing friends and family together around the dinner table. Now, Crumbl is preparing to franchise the Crust Club concept, with the first franchised location set to open in Logan, Utah on March 8th. Crust Club’s menu focuses on savory and sweet pies,...

Just as restaurants and fast casual food chains are evolving, so is the healthcare retail sector.  It comes as no surprise that we are seeing more of these types of businesses pop up within shopping centers, malls, or retail spaces. This trend continues to shape the real estate landscape by creating demand for properties that can accommodate healthcare facilities within retail environments. This type of tenant is great for landlords and investors as it can...

In Wendy’s fourth quarter earnings update, they announced they will be rolling out new digital menu boards at its fast-food locations to have more flexibility in changing the display of featured items. Some of this information has been misinterpreted in media reports claiming that they will incorporating surge pricing during peak hours which is not factual. Wendy’s said in a statement: “We have no plans to do that and would not raise prices when our...