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The retail landscape is undergoing significant changes, and Macy's recent store closures are a prime example. This movement is transforming traditional malls into dynamic multi-use complexes, creating a blend of residential, commercial, and leisure spaces. The shift means malls are no longer just about shopping. With the inclusion of residential apartments and office spaces, these areas are becoming community hubs and attractive lifestyle destinations where people live, work, and play. Additionally, the rise of e-commerce is altering how mall spaces are utilized. Many of these vacant stores are being repurposed into last-mile distribution hubs and pop-up shops, effectively blending online and offline retail experiences. The closures also offer a chance to create enhanced retail environments with augmented reality stores and showrooms, ensuring physical stores remain relevant by offering unique shopping experiences. The most crucial impact of Macy’s closures is economic revitalization. Transforming vacant retail spaces into vibrant hubs for living and working has the potential to create jobs, boost property values, and foster community engagement. This evolution marks an exciting new chapter for malls across America. Next steps by reaching out to Together CFO or setting up a call https://lnkd.in/gEhBUk3S.

On May 23, 2024, Wayfair is set to unveil their first-ever large-format store in Wilmette, Ill., marking a significant milestone for the online home furnishings giant. Spanning an impressive 150,000 sq. ft., this flagship location promises to be a haven for home enthusiasts of all tastes and budgets. With immersive experiences across 19 departments and an onsite restaurant, The Porch, Wayfair aims to redefine the in-store shopping experience. Does this move signal Wayfair's commitment to meeting customers where they are, bridging the gap between digital convenience and tactile exploration? Drawing from past lessons, particularly from their brief shuttered Natick Mall endeavor, will Wayfair be mindful of the challenges that accompany brick-and-mortar ventures? Prioritize personalized experiences, community engagement, and leveraging their robust brand portfolio, they may be poised to create a thriving physical retail presence that resonates with today's diverse consumer landscape.....and addresses the gap in the market left by Bed Bath & Beyond and others in the home category. Know who you are, what you represent and meet what the customers want! #Wayfair #RetailInnovation #WayborhoodWayfair

#BigBoxRetail is undergoing an evolution. Where the legacy players are in the middle of downsizing and store closures, newer players are seizing the opportunity to establish a physical presence to better reach their consumer-base. Most recently, Wayfair is putting the finishing touches on their first large-format #Retail store, which will soon open in Wilmette, Illinois at the Edens Plaza. As part of my morning commute, I had the pleasure to observe progress on this redevelopment of an old CARSON PIRIE SCOTT department store, which closed before the pandemic. At the time, I remember thinking to myself, "What is going in there?", but once the purple cladding started to appear, I knew it was a Wayfair location. As a #RealEstate guy, it is always interesting to note what types of uses survive and fail. If anything, it helps craft that 'spidey-sense' of tenant selection. My thesis is that this location will be a success for the company. The current trend seems to indicate that #HomeGoods retailers, like this, make good use of these properties which act as a physical store and local distribution warehouse, which gives more bang for the buck, when it comes to use of the space. And as I like to say, "Use of Location" trumps the golden rule of #LocationLocationLocation. #CRE #CommercialRealEstate

Shopping malls will become....what? Hear from Arcadis' Matt Billerbeck as he discusses four strategies for the reinvention of the so-called ghost mall. “The birth of shopping centers brought fashion to the suburbs. They gave teenagers a place to hang out and families a space to eat and buy everything they needed at once. They were anchored by big-box department stores, many of which are now failing. Only a select few continue to thrive, a testament to their ability to reinvent themselves as experiential destinations. Outside of those retail innovators, savvy owners and developers are turning to entertainment retailers and venues as a means of attracting visitors, and they are capitalizing on those dark department store spaces,” he adds. Read more here: https://bit.ly/3NsBUfP

Despite the retail real estate comeback, roughly 500 department store spaces nationwide now sit vacant. Why have so many department stores been forced to close? Partner Andy Bank, chair of our Real Estate Practice, told The Wall Street Journal that the decline of department stores can be attributed in part to online shopping. Now that shoppers can order directly from retail brands, department stores are less necessary for customer acquisition and boosting retailers’ profit margins. He noted that retailers are increasingly opening their own stores rather than relying on department store staff to sell their goods. Retailers prefer to control their customers’ entire experience, from the way their products are displayed to the shop’s lighting and scent and the design of the shopping bags customers walk out with. Wall Street Journal subscribers may read the full article here: https://lnkd.in/ejCMfiiU Read more here: https://lnkd.in/e_ShURA2 #CommercialRealEstate #Retail

How Will Macy's Closures Transform Shopping Malls into Communities? Answers: https://lnkd.in/g7Q6ceWA #MacyClosures #ShoppingMallTransformation #UrbanLiving #RetailChange Hey there! 👋 Have you heard about the recent Macy's closures? They’re not just shutting down stores, but it sounds like we’re on the brink of a whole new phase for shopping malls. Here’s a quick rundown of what to expect: Remake of Spaces: With Macy's closing some locations, we might see shopping malls transforming into vibrant communities with apartments, hockey rinks, and even Amazon warehouses! 🏢🏒📦 New Opportunities: This could create fresh opportunities for urban living, blending residential spaces with leisure and work environments. Imagine living right above your favorite rink or shopping center! Focus on Experience: Malls are likely to shift from the traditional shopping model to providing unique experiences. Think parks, entertainment venues, and cozy cafes that invite you to hang out. ☕🎡 Local Businesses: Smaller businesses might thrive in these changed landscapes, giving a boost to the local economy and bringing in unique shopping options. E-commerce Impact: With...

In-person shopping is adapting not dying. Summarizing some great points made by McCrain, although “traditional malls” are evolving to meet the rising demand for experienced-based retail destinations and live-work-play communities, people (including Gen Z) still enjoy the in-person shopping experience at the end of the day —of course contingent upon curating the right retail/restaurant/entertainment mix in the right location. Even with the continued rapid rise of e-commerce, the presence of brands’ brick and mortar stores remain crucial both to their bottom line and to how they connect to their consumers.

Department stores used to anchor shopping malls but are now struggling to survive. Department-store operators were once able to negotiate favorable lease terms (including relatively low fixed rent) because they drove foot traffic to shopping centers and allowed owners to profit from smaller tenants who competed for space next to stores such as Sears and Macy's. Department-store sales, however, peaked in 2000 and have trended downward ever since, as speciality and discount stores such as Walmart and off-price retailers like TJ Maxx took market share. Online shopping also caused department stores to lose customers. In response, shopping mall owners are redeveloping space that was previously occupied by department stores into food halls, entertainment venues, and other uses. "Major department stores now occupy less than half of all anchor spaces at enclosed shopping malls, real-estate firm Green Street said. There are roughly 500 vacant department-store spaces nationwide, with more closures on the way as Macy’s shutters 150 underperforming stores over the next three years. Department stores’ decline is a primary reason why regional malls—originally designed to lure department stores out of America’s urban downtowns—continue to struggle even as other types of retail real estate are reporting record-low vacancy rates."

In his video "Why Weirdness is Taking Over Downtown Retail," Stewart Hicks argues that the rise of unique and unconventional retail spaces is reshaping downtown environments. Here are three key points: 1.Traditional retail spaces are being replaced by more experimental and bizarre concepts. This shift is driven by consumers' desire for experiences that stand out from the uniformity of chain stores. This trend has led to the development of stores that focus on offering unique, immersive experiences rather than just products. 2. Retailers are increasingly repurposing old, non-traditional spaces, like former factories or warehouses, which adds to the eclectic feel of downtown areas. This reuse of space not only revitalizes neglected buildings but also contributes to the distinctiveness that draws people to these areas. 3. Impact on Retail Strategy These changes are pushing retailers to rethink their merchandising strategies. The focus is shifting from pure functionality to creating environments that encourage exploration and social media engagement, which can drive both foot traffic and brand awareness. These trends are influencing the retail industry by encouraging more creative and personalized approaches to store design.

Shopping center traffic has rebounded to near-pre-pandemic levels, led by open-air centers and innovative uses, Chain Store Age reports. Editor Zachary Russell points to Scheels at #Macerich's Chandler Fashion Center as an innovative use that helps drive traffic, benefiting all tenants at the center. The article also calls out Scottsdale Fashion Square among a handful of upscale centers outperforming others in the sunbelt. These trends demonstrate how Macerich delivers an exciting, appealing tenant mix at properties that mean more things to more people — creating shopping centers that are here to stay. #Macerich #PropertiesWithPurpose #RetailRealEstate #ChainStoreAge #ScottsdaleFashionSquare #ChandlerFashionCenter #SCHEELS #Retail #FutureOfMalls #ShoppingCenters #Placer.ai #ShoppingCenterTraffic