{"id":1004035574,"date":"2011-12-20T07:01:49","date_gmt":"2011-12-20T15:01:49","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004035213"},"modified":"2022-12-03T03:14:25","modified_gmt":"2022-12-03T11:14:25","slug":"exclusive-cushmans-12-retail-predictions-for-12","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/exclusive-cushmans-12-retail-predictions-for-12\/","title":{"rendered":"Exclusive: Cushman's 12 Retail Predictions for '12"},"content":{"rendered":"

December 20, 2011<\/strong>
\nBy Nicholas Ziegler, News Editor<\/em>
\n\"\"<\/a><\/p>\n

Cushman & Wakefield Inc. is set to release its 2012 retail outlook tomorrow, and despite some of the economic setbacks the world economy faced in 2011, U.S. consumers are still remaining resilient in the face of strong economic headwinds. Although same-store retail sales increased by only 3.7 perent in October, its smallest increase since March, the recent back-to-school spending season was declared by some observers to be the strongest since 2006. And, the holiday season, which can account for as much as 20 to 40 percent of a retailer\u2019s total annual sales, is shaping up to be strong as well, as the weekend bookended by Black Friday and Cyber Monday set both traffic and sales records.<\/p>\n

\u201cThe interesting thing about the size of Black Friday sales was that people were getting shopping done early with doorbuster sales,\u201d Matt Winn, head of U.S. retail services for Cushman, told Commercial Property Executive<\/em>. \u201cThat plays into our \u2018barbell of prosperity\u2019 where people are shopping at both the top end as well as at the low end [of the market]\u201d<\/p>\n

The \u201cbarbell of prosperity\u201d Winn mentioned was one of Cushman\u2019s 12 trends that will shape our economic future going into 2012. \u201cRetailing\u201d the report notes, \u201cis in the midst of a generational shift that \u2026 perpetuate the ongoing bifurcation of the retail market.\u201d In other words, the gap between high- and low-income households is continuing to grow along the Gini index \u2013 where 0 represents exactly-equal income and 100 represents one person having all the income. The index sat at 39.7 in 1967, but rose to 46.9 in 2010. The result, Winn says, \u201cis a generational shift. You\u2019re going to have an entire group of consumers who think of value. While this might not be as extreme as it was after the Great Depression, you\u2019re still training a group of consumers to look for value as their first screen.\u201d<\/p>\n

And this search for value is a key part of another trend Cushman describes. Consultancy Booz & Co. have termed consumers who knowingly spend less on non-essential items, purchasing lower-cost brands, as \u201cspend shifters.\u201d More than half \u2013 55 percent \u2013 of Americans are now trading down, according to a 2011 Booz study, meaning this change is a structural shift in the way consumers approach their purchasing habits. Retail outlet stores, for example, are in a good place to grow if this particular demographic continues to search for value.<\/p>\n

One of the other points in the report noted that big-box retailers, such as Office Depot, are working to shrink their footprints. In 2004, the store began rolling out 17,500-square-foot stores, down a third from the previous standard. By spring 2011, half of Office Depot locations were the smaller size, lowering by $1 million the yearly sales volume needed to break even. \u201cShrinking footprints means the big boxes are getting smaller in their urban locations,\u201d Winn says. \u201cBut, conversely, you have the new [Japanese clothing retailer] Uniqlo 90,000 square foot concept store maximizing exposure in a new market.\u201d<\/p>\n

\u201cIn a way,\u201d Winn explains, \u201cthe suburban store\u201d \u2013 the shrinking big-box retailer \u2013 \u201cbecomes the fulfillment of what you\u2019re sold in the urban environment.\u201d<\/p>\n

Cushman\u2019s 12 trends for 2012 continue:<\/p>\n

1. Global Political Events. <\/strong>Just as the U.S. and the European Union are struggling to find ways to pay debts and to raise new sources of capital, the U.S. consumer is doing the same \u2013 meaning retail spend will likely be muted.<\/p>\n

2. <\/strong>U.S.<\/strong> Presidential Election. <\/strong>The race for the White House will intensify, and will likely hinge on the issues of employment and taxation. With the stagnation in Washington, the figure of 9 percent unemployment may stand for quite a while.<\/p>\n

3. Inflation. <\/strong>The rising costs of raw materials and consumer goods \u2013 as well as gasoline \u2013 will see annualized CPI growth continue. But the question remains: Will retailers absorb costs or pass them along to consumers?<\/p>\n

4. Demographic Diversity.<\/strong> The U.S. population is aging appreciably, and Hispanics are quickly becoming a larger percentage of the country. These trends will continue to shape retailing and real estate.<\/p>\n

5. Return to Urban Cores<\/strong>. The nation\u2019s \u201creturn to the city\u201d trend will likely continue in 2012, meaning urban fill-ins will comprise a sizable portion of the new construction pipeline.<\/p>\n

6. The \u201cBarbell of Prosperity.\u201d <\/strong>Described above, but the two more successful retail sectors in 2011 were both luxury stores \u2013 up 8.5 percent year-over-year in August \u2013 performance that was actually eclipsed by wholesale clubs such as Costco.<\/p>\n

7. Spend Shift and the Rise of Outlets. <\/strong>Again described above, but retail outlets across the country reached record sales of $482 per square foot in 2010, according to a Cushman study.<\/p>\n

8. Mobile Commerce, Facebook and Transparency.<\/strong> Retail delivery strategies will continue to change as purchasing habits evolve. It is estimated that, by 2013, more than half of consumers will use smartphones to assist with in-store purchases.<\/p>\n

9. Pop-Up Stores. <\/strong>For some retailers, such as Toys R Us, pop-ups are a way to meet seasonal demand; for others, they increase brand visibility without a huge investment in a flagship store.<\/p>\n

10. Shopping as an Event.<\/strong> Stores are now making their shopping experiences mean something by adding enticing elements to their in-store experiences: Hollister stores have video walls. Nike and Apple combine distribution with retail stores.<\/p>\n

11. Shrinking Footprints and the Reuse of the Big Box.<\/strong> Even before the recession, stores were shrinking in size. In 2004, the average Best Buy generally occupied 45,000 square feet. In 2011, however, two-thirds of the 90 stores opened were smaller than 30,000 square feet.<\/p>\n

12. A Focus on Core Markets. <\/strong>Strong metro areas, and the high-rent shopping streets in gateway cities, will continue to drive strong demand and strong sales.<\/p>\n","protected":false},"excerpt":{"rendered":"

Cushman & Wakefield’s retail report being released tomorrow will contain both good and bad findings on the sector. U.S. retail head Matt Winn offers CPE<\/em> an exclusive advance look.<\/p>\n","protected":false},"author":1201,"featured_media":1004038243,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21742,21749],"tags":[],"class_list":["post-1004035574","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-latest","category-retail"],"acf":[],"yoast_head":"\nExclusive: Cushman's 12 Retail Predictions for '12 - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/exclusive-cushmans-12-retail-predictions-for-12\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Exclusive: Cushman's 12 Retail Predictions for '12\" \/>\n<meta property=\"og:description\" content=\"Cushman & Wakefield's retail report being released tomorrow will contain both good and bad findings on the sector. U.S. retail head Matt Winn offers CPE an exclusive advance look.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/exclusive-cushmans-12-retail-predictions-for-12\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2011-12-20T15:01:49+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-03T11:14:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2011\/12\/122011-Cushman-12-Trends-Top-Art.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"480\" \/>\n\t<meta property=\"og:image:height\" content=\"270\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nicholas Ziegler\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/exclusive-cushmans-12-retail-predictions-for-12\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/exclusive-cushmans-12-retail-predictions-for-12\/\",\"name\":\"Exclusive: Cushman's 12 Retail Predictions for '12 - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/exclusive-cushmans-12-retail-predictions-for-12\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/exclusive-cushmans-12-retail-predictions-for-12\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2011\/12\/122011-Cushman-12-Trends-Top-Art.jpg\",\"datePublished\":\"2011-12-20T15:01:49+00:00\",\"dateModified\":\"2022-12-03T11:14:25+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/ff3a837f33daecfcf8978b405eaae20c\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/exclusive-cushmans-12-retail-predictions-for-12\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/exclusive-cushmans-12-retail-predictions-for-12\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/exclusive-cushmans-12-retail-predictions-for-12\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2011\/12\/122011-Cushman-12-Trends-Top-Art.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2011\/12\/122011-Cushman-12-Trends-Top-Art.jpg\",\"width\":\"480\",\"height\":\"270\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/exclusive-cushmans-12-retail-predictions-for-12\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.commercialsearch.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Exclusive: Cushman's 12 Retail Predictions for '12\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/ff3a837f33daecfcf8978b405eaae20c\",\"name\":\"Nicholas Ziegler\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/70e28229c24dc3cf14fac93ebb7647505c7519b301aa20c8f635957a4e8a8a66?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/70e28229c24dc3cf14fac93ebb7647505c7519b301aa20c8f635957a4e8a8a66?s=96&d=mm&r=g\",\"caption\":\"Nicholas Ziegler\"},\"url\":\"https:\/\/www.commercialsearch.com\/news\/author\/nicholasziegler\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Exclusive: Cushman's 12 Retail Predictions for '12 - Commercial Property Executive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/exclusive-cushmans-12-retail-predictions-for-12\/","og_locale":"en_US","og_type":"article","og_title":"Exclusive: Cushman's 12 Retail Predictions for '12","og_description":"Cushman & Wakefield's retail report being released tomorrow will contain both good and bad findings on the sector. U.S. retail head Matt Winn offers CPE an exclusive advance look.","og_url":"https:\/\/www.commercialsearch.com\/news\/exclusive-cushmans-12-retail-predictions-for-12\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2011-12-20T15:01:49+00:00","article_modified_time":"2022-12-03T11:14:25+00:00","og_image":[{"width":480,"height":270,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2011\/12\/122011-Cushman-12-Trends-Top-Art.jpg","type":"image\/jpeg"}],"author":"Nicholas Ziegler","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/exclusive-cushmans-12-retail-predictions-for-12\/","url":"https:\/\/www.commercialsearch.com\/news\/exclusive-cushmans-12-retail-predictions-for-12\/","name":"Exclusive: Cushman's 12 Retail Predictions for '12 - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/exclusive-cushmans-12-retail-predictions-for-12\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/exclusive-cushmans-12-retail-predictions-for-12\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2011\/12\/122011-Cushman-12-Trends-Top-Art.jpg","datePublished":"2011-12-20T15:01:49+00:00","dateModified":"2022-12-03T11:14:25+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/ff3a837f33daecfcf8978b405eaae20c"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/exclusive-cushmans-12-retail-predictions-for-12\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/exclusive-cushmans-12-retail-predictions-for-12\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/exclusive-cushmans-12-retail-predictions-for-12\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2011\/12\/122011-Cushman-12-Trends-Top-Art.jpg","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2011\/12\/122011-Cushman-12-Trends-Top-Art.jpg","width":"480","height":"270"},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/exclusive-cushmans-12-retail-predictions-for-12\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"Exclusive: Cushman's 12 Retail Predictions for '12"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/ff3a837f33daecfcf8978b405eaae20c","name":"Nicholas Ziegler","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/70e28229c24dc3cf14fac93ebb7647505c7519b301aa20c8f635957a4e8a8a66?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/70e28229c24dc3cf14fac93ebb7647505c7519b301aa20c8f635957a4e8a8a66?s=96&d=mm&r=g","caption":"Nicholas Ziegler"},"url":"https:\/\/www.commercialsearch.com\/news\/author\/nicholasziegler\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2011\/12\/122011-Cushman-12-Trends-Top-Art.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004035574","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/1201"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004035574"}],"version-history":[{"count":1,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004035574\/revisions"}],"predecessor-version":[{"id":1004627812,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004035574\/revisions\/1004627812"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004038243"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004035574"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004035574"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004035574"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}