{"id":1004294906,"date":"2019-01-29T07:19:39","date_gmt":"2019-01-29T15:19:39","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004294906"},"modified":"2020-02-25T06:13:05","modified_gmt":"2020-02-25T14:13:05","slug":"retails-winners-losers","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/retails-winners-losers\/","title":{"rendered":"Retail\u2019s Winners & Losers"},"content":{"rendered":"
\"\"

Source: NNECAPA Photo Library<\/a><\/p><\/div>\n

If you relied on mainstream media reports of the past couple of years, you would think that retail real estate was doomed. But many retail property companies report strong performance. That disconnect was the topic of a panel discussion at the Goodwin-Columbia University Capital Markets conference.<\/p>\n

\u201cHow do I separate for the audience the headlines from what is really happening in retail?\u201d<\/em> asked moderator Jim Sullivan, president of the Green Street Advisory Group.<\/p>\n

Representing the ownership side was Regency Centers Inc. chairman & CEO Martin \u201cHap\u201d Stein and Acadia Realty Trust President & CEO Ken Bernstein, who also chaired ICSC for the 2017-2018 term. “What I see in your portfolios is quite different than what I read in the media,\u201d<\/em> Sullivan noted.<\/p>\n

\u201cThere is disruption that\u2019s occurring in retail that\u2019s occurred forever and ever \u2026\u201d<\/em> said Stein, whose Jacksonville, Fla.-based company specializes in grocery-anchored shopping centers. \u201cYou continue to have this separation between the winners, the survivors and the losers.\u201d<\/em><\/p>\n

Currently, Stein explained, the losers are the Sears of the world. \u201cThe companies that don\u2019t get it,\u201d<\/em> he said. \u201cThey don\u2019t provide good service. They don\u2019t provide good value. And they have over-leveraged balance sheets.\u201d<\/em> The survivors are companies that are either really good merchants, but they have too much leverage, or companies (like Bed, Bath & Beyond) that \u201chaven\u2019t quite figured things out\u201d<\/em> but have pretty strong balance sheets. The winners, he said, are stores like Publix, H-E-B, Trader Joe\u2019s and Orange Theory that \u201cget it\u201d<\/em> and have the capital to invest in technology, service and value. Those stores, Stein said, will continue to survive and thrive.<\/p>\n

Both owners and tenants have received a wake-up call during the past couple of years, said Bernstein, whose New York-based company owns a portfolio of urban and street retail. \u201cI do think our industry got complacent\u2014both landlords and tenants\u2014in terms of the amount of capital and how aggressive we needed to be to keep our stores relevant and keep our centers relevant<\/em>,\u201d he said. \u201cWe were used to retailers failing and then easily replacing them.\u201d<\/em><\/p>\n

While 2017 was a tough year, 2018 was a significantly stronger year in terms of retail fundamentals and 2019 feels strong as well, according to Bernstein. But, he said, in order to attract the \u201cthe haves\u201d<\/em>\u2015those companies that are well capitalized and willing to invest in their companies and in omnichannel distribution and willing to make shopping as \u201cfrictionless\u201d<\/em> as possible\u2015property owners must create retail environments that are physically inviting for those retailers. As for the retailers that the haves will replace?<\/p>\n

\u201cThe have-not retailers have to go away,\u201d<\/em> Bernstein said. \u201cThey are sticking around too long. It\u2019s a pain in our necks. It takes up way too much of our time and energy. \u201c<\/em><\/p>\n

Future of grocery stores<\/h2>\n

Sullivan then asked the two retail owners to share their forecasts for the grocery store business and grocery-anchored shopping centers over the next three to five years. How will that industry change to be competitive? Will \u201cclick and collect\u201d<\/em> technology replace brick and mortar stores?<\/p>\n

Amazon\u2019s purchase of Whole Foods shows that brick and mortar store will continue to be relevant, Stein said. But there will definitely be more click-and-collect technology and fulfillment spaces and you may see the use of robots in stores for such tasks as taking inventory and cleaning up spills. But, he said, the real differentiating factor will be service.  \u201cThe physical store will continue to be important. Technology will continue to grow in importance,\u201d<\/em> Stein said. \u201cIt\u2019s the ability to provide service, value and experiments that will continue to be more and more important.\u201d<\/em><\/p>\n

Bernstein agreed that there will be fewer traditional supermarket grocery-anchored shopping centers, and he did not think that would have a big impact on real estate portfolios because the industry leaders are investing in click-and-collect and fulfillment and expanding the experiences they can provide to customers.<\/p>\n

\u201cIn real America \u2026 the shopping experience is going to change,\u201d<\/em> he said. \u201cYour ability to have your groceries fulfilled and then use the time you spend in the store for other reasons, as Hap was alluding to \u2026 It could be cooking classes. There are going to be restaurants. There will be a host of other opportunities. Long before you have driverless cars, the cashier and the cash register are going away. Just think about the impact of that change alone. You can begin to think about how these stores evolve. And, just like it is incumbent upon us as landlords to think about how that change occurs, I am very pleased to hear what the Walmart\u2019s and the Kroger\u2019s and Costco\u2019s all are doing to (grow) their services.\u201d<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

At the Goodwin-Columbia University Capital Markets conference, two retail REIT CEOs discussed why some stores will survive and thrive and why others will wither and vanish.<\/p>\n","protected":false},"author":756,"featured_media":1004294909,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[23891,21742,21749],"tags":[38205,43892,43895],"class_list":["post-1004294906","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","category-latest","category-retail","tag-acadia-realty-trust","tag-green-street-advisory-group","tag-regency-centers-inc"],"acf":[],"yoast_head":"\nRetail\u2019s Winners & Losers - 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\/retails-winners-losers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Retail\u2019s Winners & Losers\" \/>\n<meta property=\"og:description\" content=\"At the Goodwin-Columbia University Capital Markets conference, two retail REIT CEOs discussed why some stores will survive and thrive and why others will wither and vanish.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/retails-winners-losers\/\" \/>\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=\"2019-01-29T15:19:39+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-02-25T14:13:05+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/01\/No_Ancher_Store_cropped.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Therese Fitzgerald\" \/>\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\/retails-winners-losers\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/retails-winners-losers\/\",\"name\":\"Retail\u2019s Winners & Losers - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/retails-winners-losers\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/retails-winners-losers\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/01\/No_Ancher_Store_cropped.jpg\",\"datePublished\":\"2019-01-29T15:19:39+00:00\",\"dateModified\":\"2020-02-25T14:13:05+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/72a93f240402a8c7f4e56a69aed5f713\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/retails-winners-losers\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/retails-winners-losers\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/retails-winners-losers\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/01\/No_Ancher_Store_cropped.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/01\/No_Ancher_Store_cropped.jpg\",\"width\":800,\"height\":620,\"caption\":\"Source: NNECAPA Photo Library\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/retails-winners-losers\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.commercialsearch.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Retail\u2019s Winners & Losers\"}]},{\"@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\/72a93f240402a8c7f4e56a69aed5f713\",\"name\":\"Therese Fitzgerald\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/02\/head.jpg?w=96\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/02\/head.jpg?w=96\",\"caption\":\"Therese Fitzgerald\"},\"description\":\"Therese Fitzgerald has nearly 20 years experience writing and editing commercial real estate content. She got her start writing about the New York City market with Real Estate Weekly and later joined CPE\u2019s predecessor publication, Commercial Property News, where she held various positions including editor in chief. In addition to working on the CPE and MHN websites, she edits CPE's Capital Markets Newsletter and MHN's Finance & Investment Newsletter. Tune into her Sustainability Street podcast on CPE.\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/author\/therese-fitzgerald\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Retail\u2019s Winners & Losers - 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\/retails-winners-losers\/","og_locale":"en_US","og_type":"article","og_title":"Retail\u2019s Winners & Losers","og_description":"At the Goodwin-Columbia University Capital Markets conference, two retail REIT CEOs discussed why some stores will survive and thrive and why others will wither and vanish.","og_url":"https:\/\/www.commercialsearch.com\/news\/retails-winners-losers\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2019-01-29T15:19:39+00:00","article_modified_time":"2020-02-25T14:13:05+00:00","og_image":[{"width":800,"height":620,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/01\/No_Ancher_Store_cropped.jpg","type":"image\/jpeg"}],"author":"Therese Fitzgerald","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\/retails-winners-losers\/","url":"https:\/\/www.commercialsearch.com\/news\/retails-winners-losers\/","name":"Retail\u2019s Winners & Losers - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/retails-winners-losers\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/retails-winners-losers\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/01\/No_Ancher_Store_cropped.jpg","datePublished":"2019-01-29T15:19:39+00:00","dateModified":"2020-02-25T14:13:05+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/72a93f240402a8c7f4e56a69aed5f713"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/retails-winners-losers\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/retails-winners-losers\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/retails-winners-losers\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/01\/No_Ancher_Store_cropped.jpg","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/01\/No_Ancher_Store_cropped.jpg","width":800,"height":620,"caption":"Source: NNECAPA Photo Library"},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/retails-winners-losers\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"Retail\u2019s Winners & Losers"}]},{"@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\/72a93f240402a8c7f4e56a69aed5f713","name":"Therese Fitzgerald","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/02\/head.jpg?w=96","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/02\/head.jpg?w=96","caption":"Therese Fitzgerald"},"description":"Therese Fitzgerald has nearly 20 years experience writing and editing commercial real estate content. She got her start writing about the New York City market with Real Estate Weekly and later joined CPE\u2019s predecessor publication, Commercial Property News, where she held various positions including editor in chief. In addition to working on the CPE and MHN websites, she edits CPE's Capital Markets Newsletter and MHN's Finance & Investment Newsletter. Tune into her Sustainability Street podcast on CPE.","url":"https:\/\/www.commercialsearch.com\/news\/author\/therese-fitzgerald\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/01\/No_Ancher_Store_cropped.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004294906","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\/756"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004294906"}],"version-history":[{"count":6,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004294906\/revisions"}],"predecessor-version":[{"id":1004394602,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004294906\/revisions\/1004394602"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004294909"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004294906"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004294906"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004294906"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}