Pretending the property business is easy, St. Louis and its hot industrial market, retail lagging the recovery (but not in Miami) and Macy’s goes shopping for commercial real estate talent – it’s all here in the Commercial Real Estate News Roundup for August 11, 2014.
The brick-and-mortar retail universe of ten years ago is gone and won’t be coming back. The intercession of the internet has rewritten the retail equation and disrupted a great many decades-old practices in fulfilling customer need under a roof. While it may not be news that parking, malls and traditional retail are finding more selective appeal, what is news is that the rate of change is increasing and mobile-enabled shoppers are accelerating the trend.
As a business trend and a disruptive force in retailing, e-commerce seems to move in only one direction: toward displacing brick and mortar retail business. The line on e-commerce is that it upends all our industry’s careful research tying profitability to location, and that it promotes “showrooming”, where consumers, armed with smartphones and cutthroat price standards, use retail floor space only to browse products, placing the actual orders only when the lowest price has been found online – even a couple of bucks and any competitor will do.
Last month’s holiday season brought the seasonal retail push. Coast to coast, goods moved at peak volumes, as they do more or less every year. But the radical change brought to retail by online shopping technology has, more than ever, redrawn the landscape in all areas of retail, from customer-facing to logistics and everywhere in between.
A recent Jones Lang LaSalle report put the number of retailers selling online at 92 percent, with 68 percent operating brick-and-mortar retail stores. The past five years have seen increases in online sales for 80 percent of retailers, and some of those are pegged at 25 percent increases.