Secondary Retail Markets Are Poised For Major Growth
Retail decreased by 25.8% year-over-year for Q1 '16, but a new JLL report finds hope for 2016's remaining quarters, expecting growth for secondary retail markets.
The analysts predict that the pent-up demand of consumers who "appeared inactive" in Q1 will be unleashed during the rest of the year.
Secondary retail markets in particular are set to enjoy faster growth, while oversaturated markets are seeing a decline (pictured, right).
A major driver of investment in the secondary retail market is the decline in demand for luxury retail. Burberry, for example, announced a 3% sales decline in the Americas and an overall revenue drop of about 10% in Q1.
This shift, coupled with climbing rents, is pushing upscale brands away from prime urban retail centers, towards secondary markets with cheaper rents.