BYLT Basics’ Post

More than 50% of malls still have legacy anchors that no longer draw the same level of traffic as they once did. These anchors were highly effective during the Industrial Revolution era, but they can no longer meet the needs of modern consumers who demand experiences, convenience, and flexibility. To remain relevant, mall spaces must engage communities and offer what consumers want. For example, converting malls into lifestyle centers with restaurants, daycares, dog care facilities, parks, gyms, and other engaging features would make them more appealing to visitors. Many mall retailers lack differentiation and primarily use their spaces as distribution points, effectively competing with Amazon. However, shopping needs to be fun, unique, personalized, and enjoyable. Most people are no longer excited to visit stores like Macy's or J.C. Penney.

Closing the 136,000-sq.-ft. Saks Fifth Avenue department store in downtown San Francisco to the public except for by-advance-appointment-only admission could be a last measure before closing the entire store permanently. What happened to San Francisco, the shining city on a hill after Tony Bennett left his heart there? Decades ago it was considered America’s cleanest city and most popular tourist destination. The Saks announcement follows closures and announced closures in San Francisco by such iconic retail brands as Macy's, Nordstrom, Rack, L’OCCITANE Group, adidas, ALDO Group, J.Crew, EXPRESS, Hollister Co., the LEGO Group, Lucky Brand, Madewell, Old Navy, Whole Foods Market Cinemark, SEPHORA, The North Face, Walgreens, Target, etc. The reason for closures range from high taxes to decline in business but a resounding underlying cause is crime, crime, crime: break-ins, shoplifting, flash mob robberies, drug addicted loiterers, etc. The Union Square district is overwhelmed with crime and homelessness. It’s disheartening that physical stores have to resort to permanent closures or partially opening by-appointment-only as Saks announced. San Francisco has been hit so hard with store closures that a new ordinance was proposed earlier this year to require companies to give six months notice of any planned store closure.

"By Kate King Aug. 6, 2024 9:00 pm ET The owners of the shopping center at Legacy West considered adding a department store to attract visitors and luxury retailers to their mixed-use project in #Plano, #Texas. Instead, Prism Places, Inc. and its partners opted for a lavish food hall. The food hall opened in 2017 with more than two dozen #restaurants and #bars, live music and a brewery. Within a couple of years, it was drawing 30,000 visitors a week and a Louis Vuitton shop moved in across from the main entrance. Tiffany & Co., Gucci and other luxury brands followed, with some pulling out of the nearby mall’s Neiman Marcus Group to open at Legacy West. “We said, ‘Instead of going after a department store, let’s do something that’s more fun and more interesting and that will drive a lot of traffic,’” said Mark Masinter, a partner on the project who handles leasing and tenant curation. #Department stores are bleeding customers, and landlords no longer view them as magnets for shoppers. Discounters are underpricing them. Specialty stores are outmaneuvering them. And luxury brands are sometimes bypassing department stores to open their own shops.  The surviving operators are making big moves in hopes of turning things around. Saks Fifth Avenue’s parent company is buying rival Neiman Marcus. Nordstrom executives are exploring taking the company private. Macy's new chief executive is closing stores while trying to improve the shopping experience at its leaner fleet.  But department stores’ long-term decline will be difficult to reverse. Their sales peaked just before the turn of the century and have been on a downward trajectory ever since, according to U.S. census data...." The Wall Street Journal

Department stores have been left behind in the real estate comeback. Sales remain flat and Landlords no longer see them as magnets for shoppers. Currently there are @ 500 vacant department store spaces nationwide with more closures expected including Macy’s shuttering 150 stores over the next 3 years. https://lnkd.in/gtUEPNZU #bankruptcy #landlords #retail #chapter11 #chapter7 #reorganization #creditorsrights #debtorcreditorsrights #landlords #ceosanddirectors #officersanddirectors #officersanddirectors

In the dynamic world of Soho retail, change is the only constant. Despite strong demand, we've seen a 0.7% increase in availability, reflecting a nuanced shift in the market. Interestingly, most of the newly available storefronts are smaller spaces situated outside of the main Broadway corridor. This trend underscores the evolving nature of Soho's retail scene, where businesses are exploring alternative locations beyond the traditional hotspots. As a result, there's a diverse range of opportunities emerging for retailers looking to establish their presence in this iconic neighborhood. #SohoRetail #RetailTrends #CommercialRealEstate #NYCShopping

Yet another #onlineretail giant opting to go "physical". It's further evidence of the demand from consumers for an in-store shopping environment, and also demonstrates the value of experience in #retail. This is such encouraging news for the future of #retail and #retaildestinations. #retailintelligence #retailinsights #consumerbehaviour #highstreets #shoppingcentres #retailparks #tri2024 Rendle Intelligence and Insights

Why I chose retail: It’s all about resilience and evolution! These properties not only adapt but thrive through decades, much like the retail industry itself. It’s a reminder of why I am so passionate about what I do.

Positive Retail updates! We've had a busy start to the year. 👊 Opened an incredible pop-up in St Leonards and are on the hunt for a permanent space there. 👊 Looking for an East London location—please see the post below. If anyone has any leads, let us know! 👊 Feeling buoyed that our brand of resale is absolutely needed and wanted in the world! So many brilliant interactions with customers and partner brands; it's affirming to open another location to great applause. If you read the news and took it in, you'd think now was an appalling time for retail, and I guess for a lot, it is. However, we are so thrilled that customers are wanting to shop consciously. Started the year strong and cannot wait to unfold our growth plans. Not that it’s all about growth, but when things work, follow your gut and dream very big, I say! #founderstories #founderjourney #growthmindset #growthstrategy #retail #retailnews #retailinnovation #sustainablebusiness #sustainableclothing #sustanability

Macy's might close its big store in San Francisco's Union Square. This could happen in 2025 or later as part of their plan to shut down some stores that aren't doing so great. They want to focus on making the stores they keep even better and opening smaller ones. Macy's has been trying to keep up with shoppers who want different things now and areas where it's tough for stores to do well. They're planning to close about 150 stores by 2026, but they'll keep about 350 open and make them nicer. In the real estate biz, we often see similar challenges and changes. At Cudd Realty, we're all about helping small businesses and our community in North Texas. When big retail stores like Macy's change their plans, it can make new opportunities for local businesses and real estate. That's where we can help figure out what's best for everyone. Thinking about how changes in the retail world could open up new real estate chances? Wanting to get the inside scoop on how it might impact your plans? Reach out and let's have a conversation about what's happening and where you could fit in. Call or text me, Michael Cudd, at 940-595-0138. Let's turn change into an opportunity together. #CuddRealty #NorthTexasRealEstateNews #RetailChanges #CommunityGrowth #RealEstateOpportunities

#Macy's #SanFrancisco and other closings are the end of the 1950s postwar era of #downtown #shopping targeted at mostly middle-class white urban customers. Today, #cities are more #multicultural, #diverse and #global but our #retailers are trying to extend the 1950s business models, despite #Walmart, #Amazon and specialty shops. Retailers and downtowns need to reimagine and reinvent themselves for young people who usually drive city development. FYI, I'm an urban planner. https://lnkd.in/gamSRYC2