Posts tagged Retail
In 2009, American retailers occupied more than 5 billion square feet of warehousing/distribution space. Although significant new leases are way down, retailers do continue to extend and/or renew their lease holdings. Many are attempting to downsize, but all are said to be reviewing their long-term warehousing strategies. More >
While Mexico is evolving into a promising site for retail expansion by U.S. based firms, the country’s full potential cannot be realized until economic conditions improve and crime is contained.
The dramatic evolution of the retail landscape over the past 20 years has been driven by a number of factors such as education, the shift in the age composition of the population, and the emergence of the middle class. The main catalyst behind the emergence of the Mexican retail landscape has been the significant growth of the middle class, with a substantial demographic shift from a “have and have not” socio-economic composition to a more socially tiered structure. The middle class continues to grow both in numbers and in disposable income due primarily to a stable financial industry that has reintroduced the availability of credit (car loans, Visa/Master Card and now mortgages). More >
Retailers looking to grow follow one of two distinct forms of market expansion. Large, well-established companies typically look to expand their market share on an international scale. Smaller retailers, usually franchised, look to expand into new markets across North America.
Tapping into a market analysis can assist these retailers in identifying which markets are ripe for expansion, how to select a location, and how to decide how large/small a presence to create in the market. More >
At the start of the recession, regional malls were in a difficult position. Battling competition from online retailers and as people turned to lower-cost bulk items to save money, shopping malls lost a lot of foot traffic and were in danger of becoming extinct. New shopping mall developments were put on hold, and even mega-malls, like New Jersey’s Xanadu, had their plans scaled back significantly in an attempt to match consumer sentiment. More >
Developing a rolling strategic blueprint is a critical step any retailer needs to complete in order to quantify both revenue and capital expectations. Functioning over a three-year time period, a strategic blueprint should identify not only the expansion of new stores but also the life-cycle of existing locations. The allocation of capital funds to projects should look at which markets and locations would provide the biggest return on revenue. More >