SHOPPING CENTER INSIGHTS BY JEFF DERVECHBlog

Batteries Plus, a chain responsible for selling batteries for watches, phones & vehicles, plus replacement lightbulbs is doing very well. They had a record-breaking year with double digit commercial sales growth in 2022 and plan to expand their franchise footprint in 2023 to keep the momentum going. Batteries Plus broke records in the first quarter of 2023 with the highest commercial sales in company history.   The company currently operates 700 stores and plans to...

Raising Cane’s founder, and co-CEO Todd Graves has quite the story to tell. It began in college, where he received the lowest grade in his college class for his proposed business plan, opening a fried chicken business. His teacher didn’t believe this would thrive in Louisiana and when he presented his idea to banks, they did not support him either. He moved to California and worked in an oil refinery then moved to Alaska to...

Dick’s Sporting Goods is a staple in the retail sporting goods industry. As with the changing of the times they are also evolving, not only to meet customer expectations but exceed them. Dicks has started opening stores with a more interactive experiential concept called the “House of Sports” and it is being received very well by its customer base. The House of Sports concepts have a batting cage, rock climbing wall, golf simulators and equipment...

Chipotle has done a great job producing quality fast casual Mexican food, who doesn’t love a Chipotle burrito every now and then? Their recent campaign highlights their sustainability efforts and the importance of connecting to mother earth. The chain is working on making over 100 of its new stores “all electric” in order to reduce their carbon footprint and show their commitment to the environment. Some of the things they are doing in order to...

There is no doubt that Lululemon is a champion in the athleisure category. They have been popular since inception by providing soft, comfortable athletic wear that is fashionable and trendy. Last year was a bumpy ride for a lot of retail, but lululemon came out strong in the 4th quarter of 2022 with revenues surging roughly 30%. Although they had huge increases in revenue, one product in particular that they sell did slow them down...

We are seeing transportation and logistics recover from backlogs of goods coming to the U.S. return to healthy pre-pandemic levels which is good news. Unfortunately, for the customers, this does not mean that prices of goods will be slashed anytime soon. It is still very costly to have items shipped. “Short-term prices for containers from Europe to the US East Coast are still more than double what they were in late-2019,” according to data from...

Dollar Stores offer unmatched discounts to their customers. Through the pandemic, however, they struggled a bit to keep up with all the online shopping that was occurring. Now, they are making a big comeback and ready to compete with grocery stores and offer more food items. At a time where we are seeing a rise in interest rates coupled with high inflation, this seems like a strategic move for the discount retailer. Currently, dollar stores...

Target has just about every single household item you could ever need. They have done a great job getting customers to do the bulk of their shopping all in one place. From grocery shopping, to buying a new throw blanket or toiletries, they have it all. Recently, they have focused their efforts on remodeling stores and having displays at the ends of aisles that make you feel like you need to buy certain items while...

7-Eleven continues to evolve and bring ease and convenience to its customers. The convenience store giant just announced that it will be rolling out the largest and most compatible network of Electric Vehicle charging stations, called “7Charge” across North America. Customers will be able to seamlessly download the app for an easy charging and payment experience. The states they will begin implementing these stations include Florida, Texas, California, and Colorado.  Once the EV network is...

With inflation still high, it comes as no surprise that consumers are doing what they can to save money. Even though we are not currently in what would be classified as a, “recession” consumers are doing more cooking at home, seeking out cheaper gas, and utilizing coupons to save money. People are behaving as if we are in a recession and the big retailers are doing what they can to lure customers in.  Many big...

CAVA, a fast casual Mediterranean restaurant confidentially filed IPO in February. If it does in fact go public, it will be the first of its kind to do so since 2021. The restaurant began in Maryland in 2006 and has since opened hundreds of stores across the country. In 2018, CAVA acquired Zoës Kitchen and has since been flipping those stores over turning them into the CAVA branded locations and opened 83 new stores in...

It has become more commonplace for people to shop online and use delivery services for grocery items in particular but there has been an uptick in online shopping for other household products as well. Nonfood items such as household cleaning products and cosmetic products are being ordered online at a much higher rate than we have ever seen. “48.2% of consumers said they are buying less cleaning supplies in-store, and nearly as many said they...

McDonald’s has been a staple in the QSR sector for many years. They offer a unique and tasty treat when you’re in the mood for a burger, fries or chicken nuggets so it is no surprise to see them growing. In Q4 2022, sales increased 10.3% up further from 7.5% in 2021. Even with inflation and menu items increasing in price by 10% their customers have been resilient. In November of 2020, they rolled out...

It’s always nice to hear good news. Coming out of the pandemic and through 2022 was a bumpy ride, now NRF economists are saying that a recession is unlikely in 2023. The federal reserve announced that with the inflation hikes, they are seeing desirable results and only hiked rates .25 basis points in February compared to .50 in previous months. The economy is seen as very resilient at this time, and we are starting to...

Sam’s club has seen a record rise in membership growth over the past two years due to its product and service offering at low prices. Due to this rise in demand, the company has decided to expand its stores with the first new one opening in Florida in 2024. In addition to stores, it will also be opening fulfillment and distribution warehouses nearby so that it can keep restocking items quickly and efficiently while maintaining...

As we have seen malls transform due to changing times and e-commerce, it comes as no surprise that mall owners are looking for new and exciting ways to bring in foot traffic. In recent years we have seen success with malls incorporating fitness centers, mini golf courses and even ax throwing in some places. However, some of these “Experiential Retail” offerings require quite expensive buildouts and are extremely customized to their offering. Is an indoor...

Amazon challenged other retailers a great deal when it first rolled out, and we saw how valuable curbside pick-up and delivery of anything you want was during the COVID-19 pandemic. Now, Amazon is facing more competition in the market as other retailers are catching up with their technology. Wal-Mart and Target, for example, have since discovered ways to compete with the retail delivery giant. Wal-Mart rolled out its Wal-Mart+ (plus) memberships for $99 a month...

Retail shopping centers have remained profitable and shown strong even with challenges such as the roll out of e-commerce in 2010 and the COVID-19 Pandemic. In today’s market, occupancy rates and rental growth has reached record highs. These brick-and-mortar locations have proven to be valuable storefronts due to the fact that you can talk to a customer service representative in person and pickup things quickly and seamlessly. “Year-to-date through November 2022, data firm MSCI Real...

Walmart is the retail pioneer for using drone delivery to deliver packages to its customers. Last year alone, they had over 6,000 successful deliveries from thirty-six stores which have the DroneUp hubs. States with locations include Arizona, Arkansas, Florida, South Carolina, Texas, Utah and Virginia. With the drone delivery service, Walmart has had success delivering items to customers front yards that weigh less than 10 pounds. They are able to reach customers within 30 minutes...

Who doesn’t love a hearty breakfast or warm cup of coffee to start the day?! Denny’s has been around for almost 70 years and is still strives to evolve with its ever-changing customer base. It has been a staple and perhaps even a breakfast tradition for families who want to take their kids out for breakfast. During the pandemic restaurants such as Denny’s took a hard hit but are emerging strong. They have incorporated more...

It has been a bumpy ride for retailers this year and the stock market indicates that. Many investors are not very bullish about retail stocks going into the holiday season when typically, this is the best time of year for those stocks when sales get a nice boost from the influx of shoppers. What we are seeing now with retail stocks is a similar picture to that from March of 2020 when there was a...

Customers are more likely to go through a drive-through than get out of their cars and go inside to eat at quick serve restaurants. As we saw the trends continue to evolve, it seems that customers still want their food as quickly and efficiently as possible. As more quick serve restaurants invest in technology, one study conducted found that customers ordering speed can be enhanced by having a brightly lit menu with food visuals as...

Inflation has hit a lot of people’s pockets in different ways, but it turns out more people are buying groceries than ever before. Grocery store spending increased 8% year over year. It appears that people are still out spending at a strong rate. Even restaurant sales increased by 1.4% from September to October. Grocery inflation has remained high but did in fact decline in October compared with September.  The Census Bureau also reported that people...

Chipotle is the only restaurant chain to own all of its own stores. It is very exciting to see that they have been doing well and just opened their 500th store in Kentucky with their infamous “Chipotlane,” which is what they call their new drive-thru concepts. The store is excited to announce its next phase of growth by making a big splash in 2023 and opening roughly 250-285 new stores. The chain stated that their...

There is no doubt about it, people are out shopping at brick-and-mortar stores. According to a survey conducted by the National Retail Federation, more people plan to shop in stores than online this holiday season. “After more than two years of heavy online shopping, consumers are ready to get back to the sport of shopping,” said Marshal Cohen, chief retail industry advisor for NPD. “Despite saying they plan on scaling back holiday spending this year,...

Target corporations’ newest location in Katy, Texas is 20,000 Sq. Ft. larger than its traditional stores. The retail giant has seen more and more customers ordering online for pickup at the store and sees this as a great way to enhance the customer experience. They want to be able to serve as a fulfillment hub and not just a retail store where you go to physically shop. The new store design has larger windows for...

Shake Shack reported Q3 earning jumping 18% since 2021 and 8% in Q3 alone with strong sales since Labor Day. The CEO, Randy Grutti attributes this growth as strong performance in Urban markets and people going back to offices and simply being out and about more post pandemic. Shake Shack has 260 locations throughout the United States with 35 currently under construction and 1/3 of those new locations will soon feature drive-thru’s. The company is...

As consumers face inflation, retailers are doing their best to capture any dollars they can this holiday season. Simon Property Group, one of the largest mall and outlet owners in the country has decided to roll out a new sales holiday with their retailers and calling it “National Outlet Shopping Day” similar to “Amazon Prime Day.” The group states that they have been wanting to do something like this since 2019 but had to push...

Starbucks is opening a 23,000 sq. ft. store which will span three stories throughout the empire state building. This location will offer many unique items and be more experiential. They will debut its only cold pressed espresso beverages which was developed using state of the art technology by the Starbucks Research and Development team. “The store will offer Starbucks Reserve signature beverages—such as the Hazelnut Bianco Latte, Whiskey Barrel Aged Cold Brew, and Nitro Almond...

Retail inventories have been starting to fill up post-pandemic. With the influx of inventory, retailers are starting to market huge sales early this holiday season in hopes that shoppers will start early. For example, Wal-Mart is already promoting massive discounts on tech gadgets, air fryers and toys. Amazon is having a two-day sale and Target already started marketing Black Friday sales items. These retailers understand that the American consumer has less discretionary money to spend...

Malls will always be a great spot for retailers as they bring in heavy foot traffic, have ample parking and an array of demographics, however, some stores are looking at stand-alone options outside of malls for various reasons. With the changing consumer behavior, malls have started adding more entertainment and experiential offerings to attract clientele, for example, some malls now have indoor ski slopes, Ferris wheels, bowling alleys, movie theatres, and gyms. Since the pandemic...

A recent survey conducted by “Mood Media” across the U.S., U.K., Spain, France, and China has revealed that the three most important characteristics to shoppers are: #1 – Atmosphere, #2 – Digital in-store, and #3 – Sustainability. As we have learned post pandemic, it comes as no surprise that brick and mortar stores are here to stay. People are back out shopping and enjoy the shopping experience with friends and family. The top trait that...

The creators of Topgolf have developed a new indoor miniature golf concept that is set to take off with a recent $150 million investment from BlackRock. Currently, there are two locations in the U.S. (Atlanta and Chicago) and four locations in the U.K. Two locations will be complete this year in Boston and Miami and expansion is slated to continue into 2023 in other major cities throughout the United States. The concept is unique in...

Subway’s focus and strategy for growth has always been on opening more stores, but now they are ready for their next phase of redevelopment. They are really trying to focus more on the customer experience and providing better service. Subway will be working on improving upon the stores that are already existing as opposed to opening new stores with entrepreneurial franchisees and those who have had success with operations and hiring great personnel to operate...

Despite concerns about inflation and a recession, restaurants are preforming well. The rate hikes are also an indicator of a strong and stable economy. According to the CEO of Texas Roadhouse, Jerry Morgan, their restaurants are seeing seasonal attendance similar to what they were seeing in 2019. Although sales have dipped in August, “it appears that more people are getting back to their normal routines when it comes to dining habits, work schedules, and vacations,”...

We have seen a major surge in drive-thru orders since the pandemic. Many fast-food chains are trying to speed up wait times and make the drive-thru experience more efficient. Panera Bread has decided to test out a program called Tori which is an artificial intelligence technology software. The chain started testing it out at two of their New York locations, customers pull up and have their order taken by a robot. Customer service representatives are...