As Old Legacy Retailers Shutter, New Entrants Help Fuel Retail's Comeback
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As Toys R Us, Sears, Abercrombie & Fitch, K-Mart and Sam’s Club continue to downsize, leaving gaping holes and vacant storefronts in malls and retail centers, new companies, international retailers and e-tailers are coming in to fill those spots with a new strategy that blends e-commerce and a physical storefront, according to several reports.
Several major mall and retail landlords are bullish on the trend, according to CNBC.
The CEO of DDR Group, which owns and operates shopping centers across the U.S., told CNBC the company has prospective tenants lined up to replace the commercial space vacated by Toys R Us. The toy chain went bankrupt in 2017 and closed about 800 of its stores last month.
“We're actively negotiating deals right now with at least 20 major, national, healthy companies ranging from off-price [brands] — like Burlington, Ross, the TJX brands — all the way over to specialty grocers like Lucky's and Sprouts," DDR Corp. CEO David Lukes said.
The retail bounce back comes as no surprise.
Data shows that sales from brick-and-mortar stores are increasing year over year.
As consumers' shopping preferences continue to shift, retail companies are adapting to the changing consumer base in a number of ways: companies are providing customers with bulk items without a membership, fast door-to-door delivery, discounted clothes and furnishing and excellent customer service, according to reports.