{"id":1004144663,"date":"2016-05-23T21:37:03","date_gmt":"2016-05-24T05:37:03","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004144663"},"modified":"2022-12-07T09:59:50","modified_gmt":"2022-12-07T17:59:50","slug":"recon-special-report-retail-at-the-crossroads","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/recon-special-report-retail-at-the-crossroads\/","title":{"rendered":"RECon Special Report: Retail at the Crossroads"},"content":{"rendered":"

By Paul Rosta<\/em><\/p>\n

Las Vegas<\/strong>\u2014What are the biggest issues facing retail real estate today?<\/p>\n

As the 2016 edition of RECon got into full swing in Las Vegas on Monday, executives sized up the major issues facing real estate\u2019s most diverse asset category. At the International Council of Shopping Centers\u2019 annual spring event, topics on attendees\u2019 radar included retailers\u2019 efforts to adapt to rapid change, the evolution of the retail center and common misconceptions about the realities of retail.\u00a0\"Las<\/a><\/p>\n

\u201cWhat\u2019s going on in retail real estate is more structural than cyclical,\u201d said Brad Hutensky, principal & president of Hutensky Capital Partners, at the company\u2019s booth in the Las Vegas Convention Center. \u201cIt\u2019s really about the fact that it\u2019s a mature business. We\u2019re renovating and turning around existing properties more than we\u2019re building new.\u201d<\/p>\n

Executives also reported rising uncertainty among retailer clients in the face of an industry that seems to be changing practically in real time. \u00a0\u201cTo sum it up, I would say that the retailers are worried,\u201d said JLL Retail CEO Greg Maloney in an early-morning meeting at the firm\u2019s booth at the Las Vegas Convention Center. \u201cThey\u2019re worried, but I think a lot of them aren\u2019t sure what to do.\u201d Too many retailers, Maloney explained, are counting on the same strategies that worked in the 1990s and early 2000s. Tried-and-true strategies do no longer always apply. \u201cWe need to make sure that our customers have a reason to go to a brick and mortar store,\u201d Maloney argued. \u201cThe old-school mindset is build it, get the right tenants and people will come. Not anymore.\u201d<\/p>\n

Raising the Barbell<\/strong>
\nAlso strongly influencing retailers\u2019 outlook, said RECon attendees, is the strong consumer preference for value in the wake of the Great Recession. \u00a0The trend is often described as the barbell effect, characterized by strong performance at the each end of the retail market and weaker results for mid-level retailers. \u201cEveryone\u2019s really trying to capture the growth that\u2019s happening at the value end.\u201d Melina Cordero, CBRE Group\u2019s head of retail research for the Americas.<\/p>\n

\"RECon<\/a>

RECon attendees streamed through the Las Vegas Convention Center on Monday.<\/p><\/div>\n

She cited the success of the off-price concepts rolled out by such retailers as Neiman-Marcus, Bloomingdale\u2019s, Nordstrom and Macy\u2019s, which are often generating stronger sales growth than conventional department store formats. But the territory between those two ends of the barbell is far more challenging, and as a result, she noted, \u201cRetailers in that middle ground are trying to figure out what to do.\u201d<\/p>\n

Another consumer preference that is shaping retail owners\u2019 strategy is the dramatic shift in tenant rosters. \u201cThe rock stars are really food and beverage,\u201d noted Mark Burlton, CBRE\u2019s executive director for global cross-border retail occupier services. Only a few years ago, food and beverage tenants accounted for only about 5 percent of retail center clients. Today, that proportion can often reach 25 or 30 percent.<\/p>\n

Missing the Point?<\/strong><\/p>\n

RECon attendees also suggested Monday that recent media reports are creating an oversimplified and sometimes distorted perception of the retail sector. Events like the recent bankruptcy filing by Sports Authority make good headlines but miss the larger point, Hutensky contended.<\/p>\n

\u201cThe press has really intensified the clarion call about the death of brick-and-mortar retail. That\u00a0 probably makes for a more interesting story for the reader, but frankly it\u2019s not the case,\u201d asserted Hutensky, \u201cToday about 92.5 percent of retail is sold in stores. It\u2019s not sold online.\u201d Despite widespread perceptions to the contrary, expansion plans abound in multiple retail categories, he pointed out. \u201cThat really is the gasoline in the engine that keeps things going.\u201d<\/p>\n

Hutensky cited Staples as an example of how retailer strategy can be easily misinterpreted. The office supplies giant\u2019s sales are divided roughly evenly between online and in-store locations, and as a result, Staples is reducing its brick-and-mortar footprint. \u201cThat is the sign of executing a smart and successful strategy. That\u2019s not a sign of weakness.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

During the first full day of RECon, topics on attendees\u2019 radar included retailers\u2019 efforts to adapt to rapid change and common misconceptions about the realities of retail. <\/p>\n","protected":false},"author":445,"featured_media":1004144664,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[22251,21742,21749],"tags":[39450],"class_list":["post-1004144663","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-in-focus","category-latest","category-retail","tag-las-vegas"],"acf":[],"yoast_head":"\nRECon Special Report: Retail at the Crossroads - 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\/recon-special-report-retail-at-the-crossroads\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"RECon Special Report: Retail at the Crossroads\" \/>\n<meta property=\"og:description\" content=\"During the first full day of RECon, topics on attendees\u2019 radar included retailers\u2019 efforts to adapt to rapid change and common misconceptions about the realities of retail.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/recon-special-report-retail-at-the-crossroads\/\" \/>\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=\"2016-05-24T05:37:03+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-07T17:59:50+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/05\/Las-Vegas-sign-in-LVCC-lobby2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1328\" \/>\n\t<meta property=\"og:image:height\" content=\"747\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Paul Rosta\" \/>\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\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/recon-special-report-retail-at-the-crossroads\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/recon-special-report-retail-at-the-crossroads\\\/\"},\"author\":{\"name\":\"Paul Rosta\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/ed97e8245f278ce01a7b951f706152af\"},\"headline\":\"RECon Special Report: Retail at the Crossroads\",\"datePublished\":\"2016-05-24T05:37:03+00:00\",\"dateModified\":\"2022-12-07T17:59:50+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/recon-special-report-retail-at-the-crossroads\\\/\"},\"wordCount\":683,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/recon-special-report-retail-at-the-crossroads\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2016\\\/05\\\/Las-Vegas-sign-in-LVCC-lobby2.jpg\",\"keywords\":[\"Las Vegas\"],\"articleSection\":[\"In Focus\",\"News\",\"Retail\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/recon-special-report-retail-at-the-crossroads\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/recon-special-report-retail-at-the-crossroads\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/recon-special-report-retail-at-the-crossroads\\\/\",\"name\":\"RECon Special Report: Retail at the Crossroads - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/recon-special-report-retail-at-the-crossroads\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/recon-special-report-retail-at-the-crossroads\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2016\\\/05\\\/Las-Vegas-sign-in-LVCC-lobby2.jpg\",\"datePublished\":\"2016-05-24T05:37:03+00:00\",\"dateModified\":\"2022-12-07T17:59:50+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/ed97e8245f278ce01a7b951f706152af\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/recon-special-report-retail-at-the-crossroads\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/recon-special-report-retail-at-the-crossroads\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/recon-special-report-retail-at-the-crossroads\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2016\\\/05\\\/Las-Vegas-sign-in-LVCC-lobby2.jpg\",\"contentUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2016\\\/05\\\/Las-Vegas-sign-in-LVCC-lobby2.jpg\",\"width\":1328,\"height\":747},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/recon-special-report-retail-at-the-crossroads\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"RECon Special Report: Retail at the Crossroads\"}]},{\"@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\\\/ed97e8245f278ce01a7b951f706152af\",\"name\":\"Paul Rosta\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/9c1c95e152828621b403b03a53198a2cb762882a74877838d5ccb2f54ebd769f?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/9c1c95e152828621b403b03a53198a2cb762882a74877838d5ccb2f54ebd769f?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/9c1c95e152828621b403b03a53198a2cb762882a74877838d5ccb2f54ebd769f?s=96&d=mm&r=g\",\"caption\":\"Paul Rosta\"},\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/author\\\/paul-rosta-2\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"RECon Special Report: Retail at the Crossroads - 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\/recon-special-report-retail-at-the-crossroads\/","og_locale":"en_US","og_type":"article","og_title":"RECon Special Report: Retail at the Crossroads","og_description":"During the first full day of RECon, topics on attendees\u2019 radar included retailers\u2019 efforts to adapt to rapid change and common misconceptions about the realities of retail.","og_url":"https:\/\/www.commercialsearch.com\/news\/recon-special-report-retail-at-the-crossroads\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2016-05-24T05:37:03+00:00","article_modified_time":"2022-12-07T17:59:50+00:00","og_image":[{"width":1328,"height":747,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/05\/Las-Vegas-sign-in-LVCC-lobby2.jpg","type":"image\/jpeg"}],"author":"Paul Rosta","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.commercialsearch.com\/news\/recon-special-report-retail-at-the-crossroads\/#article","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/recon-special-report-retail-at-the-crossroads\/"},"author":{"name":"Paul Rosta","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/ed97e8245f278ce01a7b951f706152af"},"headline":"RECon Special Report: Retail at the Crossroads","datePublished":"2016-05-24T05:37:03+00:00","dateModified":"2022-12-07T17:59:50+00:00","mainEntityOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/recon-special-report-retail-at-the-crossroads\/"},"wordCount":683,"commentCount":0,"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/recon-special-report-retail-at-the-crossroads\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/05\/Las-Vegas-sign-in-LVCC-lobby2.jpg","keywords":["Las Vegas"],"articleSection":["In Focus","News","Retail"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.commercialsearch.com\/news\/recon-special-report-retail-at-the-crossroads\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/recon-special-report-retail-at-the-crossroads\/","url":"https:\/\/www.commercialsearch.com\/news\/recon-special-report-retail-at-the-crossroads\/","name":"RECon Special Report: Retail at the Crossroads - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/recon-special-report-retail-at-the-crossroads\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/recon-special-report-retail-at-the-crossroads\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/05\/Las-Vegas-sign-in-LVCC-lobby2.jpg","datePublished":"2016-05-24T05:37:03+00:00","dateModified":"2022-12-07T17:59:50+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/ed97e8245f278ce01a7b951f706152af"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/recon-special-report-retail-at-the-crossroads\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/recon-special-report-retail-at-the-crossroads\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/recon-special-report-retail-at-the-crossroads\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/05\/Las-Vegas-sign-in-LVCC-lobby2.jpg","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/05\/Las-Vegas-sign-in-LVCC-lobby2.jpg","width":1328,"height":747},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/recon-special-report-retail-at-the-crossroads\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"RECon Special Report: Retail at the Crossroads"}]},{"@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\/ed97e8245f278ce01a7b951f706152af","name":"Paul Rosta","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/9c1c95e152828621b403b03a53198a2cb762882a74877838d5ccb2f54ebd769f?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/9c1c95e152828621b403b03a53198a2cb762882a74877838d5ccb2f54ebd769f?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/9c1c95e152828621b403b03a53198a2cb762882a74877838d5ccb2f54ebd769f?s=96&d=mm&r=g","caption":"Paul Rosta"},"url":"https:\/\/www.commercialsearch.com\/news\/author\/paul-rosta-2\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/05\/Las-Vegas-sign-in-LVCC-lobby2.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004144663","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\/445"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004144663"}],"version-history":[{"count":1,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004144663\/revisions"}],"predecessor-version":[{"id":1004628326,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004144663\/revisions\/1004628326"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004144664"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004144663"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004144663"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004144663"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}