Excerpt from roundtable during Tango’s virtual retail summit The Next Normal for Retail Location Strategy on May 19, 2020.
Retail Trends in a COVID-19 World
Shannon Koenigsdorf – Region Lead, Client Service Delivery, PSC, Cushman & Wakefield:
“I think as we look forward, unfortunately, the bankruptcies that we’ve seen thus far this year aren’t going to slow down. I think we’re going to continue to see folks that have been on the watch list, unfortunately, continue to file as the year goes on and that’s going to create some opportunities for those who are looking to make deals right now. We’ve been talking for a long time about this dichotomy that’s been developing in retailer where you have the luxury retailers doing well and the discount retailers doing well and the middle being squeezed. Unfortunately, this is going to continue to exacerbate that, we think.
I mentioned some sort of creativity that we’re starting to see in maybe improving the retail tenants’ lease position. I think we’re going to see more of that as we move forward. Folks really getting in tune via the use of strategy tools and products, what is the right size for their portfolio and what’s the quickest path to that right-size portfolio? So, I think that’s something that … those are some hard questions that folks are going to be working really, really hard to answer over the coming months to make sure that as they’ve continued to invest in omnichannel because they’ve recognized COVID has really emphasized the importance of having a strong online shopping experience available to their customers, I think that’s going to help them answer perhaps, is more of a hub and spoke model appropriate for it for some folks. So, we’re going to see more of that as we move forward as well.
And then I think as we pivot to a new normal, we will see investment in the stores that have made it through that modeling exercise as the right long-term answers, I think that’s when we start to see in-store investment. I think retailers are going to be looking to partner with their institutional owners to try to create a situation whereby perhaps they’re giving a longer-term extension in favor of some capital to invest in those types of renovations.”
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