Search
 

NAREIT Conference Examines the Future of Retail in a Slowdown

WASHINGTON, DC-Although mall rents will not be immediately affected, department stores could look forward to mergers. Maintaining market share is critical to survival in this economy.

By Diane Cook | Updated on December 07, 2000

WASHINGTON, DC-Though recession may not be in the immediate future, the nation’s malls will be operating in overdrive to maintain their competitive edges. The economic slowdown will bring consolidations of some major department stores and a third of the country’s regional malls will take on new functions, according to comments from six key industry figures at the Dec. 7 conference of the National Association of Real Estate Trusts.

While economists note that retail spending is declining, recession is not the likely outcome, says Morgan Stanley Dean Witter & Co. analyst Matt Ostrower. Historically, this type of decline has affected REIT returns for malls. But malls are not likely to feel the pinch this early in the game. Department stores, however, are a different story.

“Over the past several years specialty stores are picking up market share at a faster rate than the discount sector,” says Rick Sokolov, president and COO, Simon Property Group. “Department stores have had a flat to declining market share. We have been encouraged about this Christmas in that department stores seem more focused on market share and are more promotional earlier in the season. That could have an impact on their margins.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.