Atlanta: Why There's No Retail Apocalypse (sales, real estate, to buy)

[aries4118]

Atlanta: Why There's No Retail Apocalypse
https://www.wsj.com/video/why-there-...8-a1ef18759d72

[aries4118]

This is why need to keep working to transform and retrofit key retail areas like Gwinnett Place, Northlake, Sprayberry Crossing, Southlake, etc...

[arjay57]

Good points, aries.

[DreamerD]

Originally Posted by aries4118

Atlanta: Why There's No Retail Apocalypse
https://www.wsj.com/video/why-there-...8-a1ef18759d72

Informative post. Yes, mainstream media would have people think that brick and mortar stores will all soon shut down. I think around 11 per cent of retail sales are e-commerce. Don't quote me on that number. With all the counterfeiting, I can definitely understand why consumers (most) choose to buy their health products in person rather than online.

[citidata18]

The video didn't seem to be specific to Atlanta.

In any event, to say there's no retail apocalypse in Atlanta is not entirely true. There was a whole article not too long ago about how South DeKalb has been completely ravaged by retail closures.

https://www.ajc.com/news/online-comp...C1f5LAcuBAIjP/

It's still early, as this year is poised to surpass any previous year in terms of retail closures by a wide margin (and this is without a recession). I would keep an eye on other low density / lower income shopping hubs for more store closures.

[aries4118]

Originally Posted by citidata18

The video didn't seem to be specific to Atlanta.

In any event, to say there's no retail apocalypse in Atlanta is not entirely true. There was a whole article not too long ago about how South DeKalb has been completely ravaged by retail closures.

https://www.ajc.com/news/online-comp...C1f5LAcuBAIjP/

It's still early, as this year is poised to surpass any previous year in terms of retail closures by a wide margin (and this is without a recession). I would keep an eye on other low density / lower income shopping hubs for more store closures.

It is related to Atlanta.

And remember, the reason for this thread is not to say there won’t be any closures. It is actually a reminder for us to not “give up” on certain retail areas and instead work strategically to update, transform, retrofit, and market these areas.

[atler8]

As noted in the piece from October below, we have a structural problem in the U.S. that is contributing to the shakeout in retail store numbers & in retail real estate. That problem is that on a per capita basis the U.S. has far too much retail space in terms of square footage.

Simply put, that specific structural problem exists because we've overbuilt in retail space due to a number of reasons, among them the expectation that past shopping trends would continue relatively unchanged. They haven't & they won't.

https://www.businessinsider.com/reta...n-says-2018-10

[Mutiny77]

Originally Posted by atler8

As noted in the piece from October below, we have a structural problem in the U.S. that is contributing to the shakeout in retail store numbers & in retail real estate. That problem is that on a per capita basis the U.S. has far too much retail space in terms of square footage.

Simply put, that specific structural problem exists because we've overbuilt in retail space due to a number of reasons, among them the expectation that past shopping trends would continue relatively unchanged. They haven't & they won't.

https://www.businessinsider.com/reta...n-says-2018-10

Exactly. The vast majority of these malls and shopping centers that have declined did so well before the rise of online shopping; it was pretty much the retail scene correcting/right-sizing itself due to overbuilding and the abandonment of older suburban areas for newer outer suburban/exurban development.

[cqholt]

People no longer want to shop at bland, low density strip malls and shopping malls. They want mixed-use, destinations, that provide an experience.

[Mutiny77]

Originally Posted by cqholt

People no longer want to shop at bland, low density strip malls and shopping malls. They want mixed-use, destinations, that provide an experience.

I wouldn't go quite that far. Enclosed shopping malls have certainly taken a beating, but the story is a bit different with strip malls. The interesting thing about the upheavals in retail right now is that it is mainly affecting the middle-of-the-road retailers, but budget-conscious retailers, which tend to be located in strip malls, are thriving right now.

[TJ Maxx] has been benefiting from a disappearing middle class and a higher demand for budget options — two factors that have been hurting department stores like JCPenney and Sears.

TJ Maxx has also been able to avoid the effects of declining foot traffic to shopping malls. Most TJ Maxx stores are located in suburban strip malls rather than enclosed shopping malls, so the discount chain is less likely to be affected by the declining foot traffic that has hurt malls and the retailers that depend on them.

Like other off-price retailers, TJ Maxx is known for offering a treasure-hunt experience in stores, which is difficult to replicate online.

https://www.businessinsider.com/tj-m...retail-2018-12