NRF: In-store sales have edge over online sales this year 1
By: Jeff Dervech - November 12, 2022 NRF: In-store sales have edge over online sales this year

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,...

Read More
Target unveils larger-format store design 2
By: Jeff Dervech - November 10, 2022 Target unveils larger-format store design

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...

Read More
Shake Shack ramps up labor efforts to support traffic recovery, growth 3
By: Jeff Dervech - November 7, 2022 Shake Shack ramps up labor efforts to support traffic recovery, growth

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...

Read More
The biggest mall owner in the U.S. hopes to create a new sales holiday as inflation surges 4
By: Jeff Dervech - November 5, 2022 The biggest mall owner in the U.S. hopes to create a new sales holiday as inflation surges

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...

Read More
Starbucks to Open 23,000-Square-Foot Store in Empire State Building 5
By: Jeff Dervech - October 30, 2022 Starbucks to Open 23,000-Square-Foot Store in Empire State Building

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...

Read More
Amazon, Walmart Kick Off Holiday Sales With ‘Massive’ Deals Expected 6
By: Jeff Dervech - October 28, 2022 Amazon, Walmart Kick Off Holiday Sales With ‘Massive’ Deals Expected

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...

Read More
How COVID-19 Changed Retailers’ Site Selection Strategies 7
By: Jeff Dervech - October 24, 2022 How COVID-19 Changed Retailers’ Site Selection Strategies

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...

Read More
The top three things that in-store shoppers want are.. 8
By: Jeff Dervech - October 21, 2022 The top three things that in-store shoppers want are..

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...

Read More
Puttshack gets $150M from BlackRock to Fuel Mini Golf Entertainment Growth 9
By: Jeff Dervech - October 16, 2022 Puttshack gets $150M from BlackRock to Fuel Mini Golf Entertainment Growth

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...

Read More
Subway Evolves Into its Next Stage of Growth 10
By: Jeff Dervech - October 14, 2022 Subway Evolves Into its Next Stage of Growth

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...

Read More
A Vision of a Post-COVID Era Emerges for Restaurants 11
By: Jeff Dervech - September 15, 2022 A Vision of a Post-COVID Era Emerges for Restaurants

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,”...

Read More
Panera Bread tests artificial intelligence technology in drive-thru lanes 12
By: Jeff Dervech - September 2, 2022 Panera Bread tests artificial intelligence technology in drive-thru lanes

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...

Read More
Walmart invests in ranchers’ company as more shoppers opt for premium beef 13
By: Jeff Dervech - September 1, 2022 Walmart invests in ranchers’ company as more shoppers opt for premium beef

Walmart understands that customers want to know more about their food, where it comes from and what is in it. In order to improve upon their product offering in grocery stores, they have partnered with McLaren Farms and invested in their own line of Sustainable Beef. Customers are looking more closely at the ingredients in their foods and Wal-Mart wants to be able to provide them with antibiotic-free, hormone-free, and even organic alternatives. The new...

Read More
Consumers keep shopping despite inflation 14
By: Jeff Dervech - August 20, 2022 Consumers keep shopping despite inflation

According to the National Retail Federation, consumer sales were up 0.8% month-to-month from June to July. Although people are still concerned with inflation, it seems consumers are continuing to shop at a similar pace. When looking back at sales from over a year ago, retail sales are actually up 10.3%. The top categories with sales up in include online sales, building materials and garden supplies, and grocery stores. According to the article: “Online and other...

Read More
Here’s a look at Wendy’s new, technology - fueled prototype 15
By: Jeff Dervech - August 19, 2022 Here’s a look at Wendy’s new, technology – fueled prototype

Wendy’s is striving to keep up with current trends on how patrons are ordering and has come up with an entirely revamped brick and mortar layout. The improved layout will feature shelves inside for ordering online and picking up in store as well as a window designed specifically for delivery drivers. There will also be special parking for the grab and go customers. Wendy’s has seen that many of their sales are coming from digital...

Read More
In Spite of Worries About Inflation, Downturn, Retail Leasing Has Thrived This Year 16
By: Jeff Dervech - August 12, 2022 In Spite of Worries About Inflation, Downturn, Retail Leasing Has Thrived This Year

So far this year, the U.S. retail market has shown absolute strength. Although, some have been wary about the state of the economy this summer due to inflation, it has not stopped retailers from opening new stores. Some however, are hitting the pause button on new store openings going into the latter half of the year to see how the state of the economy pans out and whether inflation will go down. The types of...

Read More
Macy’s speeds up plans to open smaller stores outside of malls 17
By: Jeff Dervech - August 5, 2022 Macy’s speeds up plans to open smaller stores outside of malls

Macy’s is evolving and adapting to consumer behavior changes by opening smaller department stores that compete with stores such as T.J. Maxx. Macy’s plans to open three “Market by Macy’s stores” in cities across the United States which are just 1/5th of the size of their typical department stores. They are shifting and opening stores where they see many people shopping online but also want to have a brick-and-mortar presence. These stores will have a...

Read More
Suburban Retail Has Been Outperforming Urban Properties. Will This Trend Continue? 18
By: Jeff Dervech - August 2, 2022 Suburban Retail Has Been Outperforming Urban Properties. Will This Trend Continue?

Many suburban retailers have been doing more business than urban locations for the past few years. Due to the Pandemic and an increase in people working from home, they are shopping closer to their homes and continue to do so. Now, there has been a shift in the workforce with people going into the office a few times a week vs. full time and it seems to be benefitting both, urban and suburban properties. According...

Read More
Markdown Mania – Tv’s, Furniture, Leisure Wear and More Hits Major Retailers Moving Excess Inventory on Pandemic-Era Goods 19
By: Jeff Dervech - July 27, 2022 Markdown Mania – Tv’s, Furniture, Leisure Wear and More Hits Major Retailers Moving Excess Inventory on Pandemic-Era Goods

Retailers are seeing large amounts of inventory in certain types of products and are being forced to sell them at a discount or halt purchasing from certain vendors in order to get rid of the excess that may be taking up valuable space in warehouses. The main reason? Consumers preferences have shifted through the Pandemic up to now. For example, more people are searching for back to office apparel in lieu of athleisure wear. During...

Read More
Taco Bell readies ‘Defy’ frictionless drive-thru opening 20
By: Jeff Dervech - July 24, 2022 Taco Bell readies ‘Defy’ frictionless drive-thru opening

Enhancing the drive-thru experience has been a new hot topic since the pandemic hit. People are demanding more contactless options, and a seamless experience when picking up their food. Taco Bell is one fast food chain that has adapted to customer demands and is opening its first futuristic looking restaurant concept called ‘Defy’ in Minnesota. The design is a two-story structure and features four drive-thrus below the restaurant to serve customers at record speeds. Three...

Read More
Consumers are venting about menu prices, but not always acting on it 21
By: Jeff Dervech - July 22, 2022 Consumers are venting about menu prices, but not always acting on it

In a recent study conducted on Yelp, more customers than ever are writing reviews mentioning higher costs of prices at their favorite restaurants. In the first quarter of 2022, inflation hit record highs since the 1980’s. Many restaurants are reporting having to increase the prices of their menu items or cut back on portion size offerings; however, the restaurants are seeing little to no decline in the amount of pushback they are receiving from customers....

Read More
Kroger Targets new market for fast delivery with hiring initiative 22
By: Jeff Dervech - July 20, 2022 Kroger Targets new market for fast delivery with hiring initiative

Grocery delivery has become a widely popular trend. About one year ago, large grocery chain Kroger opened its first Customer Fulfillment Center (CFC) in Groveland, Florida to service the greater Tampa Bay, Orlando, and Jacksonville markets. With much success in these markets and with its e-commerce delivery business model, the chain recently announced it will be expanding its reach into the South Florida market and hiring approximately 200 more workers. Instead of going to a...

Read More
Demand For Electric Vehicles Is Rising. How Can Building Owners Prepare for The Influx? 23
By: Jeff Dervech - June 10, 2022 Demand For Electric Vehicles Is Rising. How Can Building Owners Prepare for The Influx?

With the rise in gas prices coupled with the Biden administrations $5 Billion budget to support State EV charging station infrastructure, it is highly likely we will be seeing an even greater increase in demand for Electric Vehicles. From 2016 to 2020, the increase in number of electric vehicles has tripled to a total of 1.8 million registered in the U.S. For building owners, especially residential, it is critical that they begin investing in the...

Read More
Target Q1 earnings plunge amid ‘unusually high costs’ 24
By: Jeff Dervech - June 9, 2022 Target Q1 earnings plunge amid ‘unusually high costs’

Although Target increased sales in Q1 of 2022, they missed profit margins by almost $1 billion from last year. Net profit margin decreased due to the high costs of transportation and freight. It is refreshing to see that their “total revenue rose 4.0% to $25.17 billion, above estimates of $24.48 billion. Same-store sales increased 3.3%, also more than expected. Sales growth was led by frequently purchased categories, including food & beverage, beauty and household essentials.” Unfortunately,...

Read More
Does Increased Leasing Activity Signal Recovery for Retail Sector? 25
By: Jeff Dervech - June 7, 2022 Does Increased Leasing Activity Signal Recovery for Retail Sector?

Demand for leasing space has increased significantly from 2020 to 2021. Many businesses that were already on the brink of closing were propelled to close during the pandemic and new, stronger tenants have taken their places within retail strip centers. Retail commercial real estate firms have stated that from March 2021 to March 2022 was the strongest year for retail tenant lease ups in nearly five years. With the pandemic winding down and pent-up demand...

Read More
Chipotle raised prices another 4% but still can’t outrun inflation 26
By: Jeff Dervech - June 3, 2022 Chipotle raised prices another 4% but still can’t outrun inflation

With inflation at historic highs, it is severely impacting restaurants bottom line, at least for now! Take for instance Chipotle. High prices for avocados, dairy products and tortillas have forced the fast causal chain Chipotle to raise prices last quarter above 4%. Even with this increase it is not allowing them to achieve the margins that they would like to obtain. Chipotle CFO, Jack Hartung said, “there are no signs that food or packaging prices...

Read More
Inside the Store - Amazon Go's new suburban format 27
By: Jeff Dervech - May 20, 2022 Inside the Store – Amazon Go’s new suburban format

Amazon opened its first suburban convenience store concept called “Amazon Go” in Washington on April 26, 2022. The new concept is tailored to the busy, on the go, fast-paced commuters who are looking to grab a snack or meal quickly. Patrons simply enter the store using the Amazon shopping app. Once you’re in the store, you can grab the products you want and go! There are essentially no lines or checkout. Some of the product...

Read More
Wawa Charts Massive Growth Strategy 28
By: Jeff Dervech - April 27, 2022 Wawa Charts Massive Growth Strategy

The convenience store retailer, Wawa Inc. is planning major growth and adding hundreds of new locations that will connect its stores along the East coast and into Florida. With over 1,000 stores already, the chain is planning to open an additional 1,800 locations by 2030. Wawa is looking to fill the void of stores between Virginia and Florida with expansion into new states. The store will build a few different concepts, one being “traditional,” which...

Read More
Inflation has the middle class already planning restaurant cutbacks, study finds 29
By: Jeff Dervech - April 27, 2022 Inflation has the middle class already planning restaurant cutbacks, study finds

With the rise of inflation, speculation is whirling as to how often consumers will continue to eat out at restaurants due to increase in prices across the board. One recent study is now proving this to be true. Middle income Americans are worrying more about their budgets now than they ever have before, reviewing the costs of all items that they elect to spend their money on. This is a direct impact from the recent...

Read More
Walgreens turns to robots to fill prescriptions, as pharmacists take on more responsibilities 30
By: Jeff Dervech - April 19, 2022 Walgreens turns to robots to fill prescriptions, as pharmacists take on more responsibilities

With the shift in consumers buying so many goods online, Walgreens was challenged to stay competitive in the pharmaceutical sector and is changing how it fills prescriptions to be more efficient. Walgreens has opened one of its first micro-fulfillment centers in Texas to fill prescriptions using robotic arms. Within this facility there are approximately 220 employees including pharmacist’s that fill roughly 35,000 prescriptions per day. Walgreens plans to open 22 more fulfillment centers throughout the...

Read More
Investment Activity in Automotive Net Lease Assets Speeds Up 31
By: Jeff Dervech - April 19, 2022 Investment Activity in Automotive Net Lease Assets Speeds Up

The automotive net lease market is not slowing down. Retail tenants that include an auto related use are much more resistant to e-commerce, essentially recession proof, and are considered to be very stable and secure users of retail space. With close to 282 million cars on the road in the United States, car services and auto part businesses are essential to consumers.  “On average, American’s drive 12,000 miles each year and spend 1.5 percent of...

Read More
The Past, Present, and Future of Fast-Food Drive-Thru 32
By: Jeff Dervech - April 7, 2022 The Past, Present, and Future of Fast-Food Drive-Thru

Drive-thru lanes have been around for decades and not much has changed. However, since the Pandemic, many restaurant tenants single handedly witnessed drive thru lanes and take out operational components as lifelines to keeping their businesses afloat. Due to this, more restaurants are interested and desire to add drive-thru lane components to their current prototype and future expansion plans for customer convenience and the enhancement of the overall experience.  “According to the NPD Group, drive-thru restaurant...

Read More
Ghost kitchens could be a $1T global market by 2030, says Euromonitor 33
By: Jeff Dervech - March 31, 2022 Ghost kitchens could be a $1T global market by 2030, says Euromonitor

Ghost kitchens are a popular concept that have been on the rise even since before the pandemic. Now, with changing consumer demand, labor shortages, as well as the advances in technology, Ghost kitchens are thriving.   One of the main drivers of the ghost kitchens concept prior to the pandemic was that it involved less overhead due to the smaller kitchen only footprint and virtually no employees except kitchen staff. This ghost kitchen food model allows...

Read More
Growth in New Types of Health and Wellness Tenants Drives Retail Leasing Activity 34
By: Jeff Dervech - March 29, 2022 Growth in New Types of Health and Wellness Tenants Drives Retail Leasing Activity

The rising increase in preventative medicine and the awareness surrounding people’s desire to keep healthy has led to the growth of many new health and wellness concepts that are finding homes within neighborhood retail strip centers. These non-traditional “med-tail” concepts include alternative medicine, acupuncture, massage therapy, cryotherapy and physical therapy. Instead of renting space within healthcare facilities, health and wellness tenants have been strategically positioning themselves in highly visible, high traffic shopping centers. Med-tail tenants...

Read More
Store closures slowed after a pandemic shakeout. Now Dollar General, Warby Parker and others see new value in stores 35
By: Jeff Dervech - March 16, 2022 Store closures slowed after a pandemic shakeout. Now Dollar General, Warby Parker and others see new value in stores

An interesting trend we are closely watching, is the growing list of direct-to-consumer retailers that started their businesses online and are now adopting physical stores to reach new shoppers, boost profits, and drive brand awareness.   One retailer who plans to hit the ground running, opening three stores in Massachusetts this year, is Wayfair. They had tremendous success in 2020 with consumers wanting to enhance their homes during the Coronavirus Pandemic. Wayfair’s sales rose 55% from...

Read More
Seven Trends Driving Commercial Real Estate in 2022 36
By: Jeff Dervech - February 23, 2022 Seven Trends Driving Commercial Real Estate in 2022

Promise is on the horizon! The commercial real estate environment remains favorable in 2022. Investors are choosing real estate and propelling into the market in an effort to diversify their portfolios for many different reasons which include inflation, the volatile stock market, and the low interest rate environment for debt.  Below are a few highlights.  Significant capital and available debt will contribute to another year of growth. “ Preqin reported commercial real estate funds collected over $152.2...

Read More