Despite some of the negative headlines, quality malls and well positioned brick and mortar retail is expected for robust growth in the coming decade. Over this period, annual consumer spending is estimated at 4.3% which will be fueled primarily by low unemployment and an expanding economy. As anchored department store tenants are redeveloped due to the change in meeting consumer demands, inline tenants will continue to fare much better as they are able to pivot and adjust their product offerings to embrace an Omni-Channel strategy for long term sustainability.
Did you know that 42% of all e-commerce sales are generated by brick and mortar retailers?
It is important to not overstate the negative impact of online retail on physical stores. As “E-Tail” growth has doubled from 4% in 2009 to 8.9% in 2017, sales at brick and mortar establishments (including food services) have expanded by 3.2% yearly, on average since 2010. The future looks bright for physical retail and malls, retailers online and offline strategies are increasingly being used to complement each other.