(For more retail coverage, click GlobeSt.com/RETAIL.)
CHICAGO-The Chicagoland area's healthy economic base and growing population together fuel retail sales that meet or exceed the expectations of retailers, according to Mid-America Retail Group's recently released Fourth Annual Retail Demand Study.
Out of 32 categories that the firm tracks, the primary retailer types generating the most buzz include: grocery/discount combination stores, traditional grocery stores, home improvement stores and restaurants. The study includes more than 864 retailers currently active in the Chicagoland area.
According to Mid-America's research, grocery and discount retailers are currently seeking some 18 million sf and continue to dominate the demand side of Chicago's retail growth. With Wal-Mart Supercenter and Target Superstore leading the discount grocer arena, specialty grocery stores such as Whole Foods and Trader Joe's are also putting pressure on the mainstream grocery stores like Dominick's.
Big-box retailers Home Depot and Lowe's are dominant players in the home improvement category, which increased 8.5% from 2005. However, new activity is being seen by smaller, independent hardware stores again, such as Ace and True Value, according to the report. These smaller retailers are beginning to react to a perceived niche in the neighborhoods in response to a perception that service is lacking in the larger chains.
In regard to restaurants, Kim McGuire, a broker with Northern Realty Group, tells GlobeSt.com that "there's a never-ending supply of independent restaurants opening in the Chicago area," especially in fringe market areas like the Ukrainian Village, where space is still available at a good price.
"Every week I hear of new ones planning to open," McGuire says. In regard to the quick casual concept, McGuire predicts continued expansion for Chipotle and Panera Bread, as well as the new concept started by ex-executives of Lettuce Entertain You called Go Roma, which has opened in both the city and suburban markets.
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