From Macy's and JCPenney's to Payless, without a doubt, it is clear there is a “shake up” underway and very few are bulletproof. That is according to Jason Baker, principal with Houston-based retail brokerage Baker Katz.
He recently told GlobeSt.com that the strong will get stronger and the weak will get weaker—or close their doors altogether. “Mid-level retailers that don't offer a unique or private label product—like Kohl's and JCPenney—are going to get hurt more and more in the near future. Kohl's is at least making an attempt to adjust by rightsizing their stores, but it's unclear if that will really address the issues they're facing.”
And as a result of these trends, he adds, “everyone is scratching their heads as it relates to retail and the future of the industry. However, in markets like Houston, retail occupancy and total retail square footage are both at all time highs.”
As for what the future holds? “In spite of some of the negative announcements among retailers, the forecast is really pretty positive from my perspective,” he explains. “While online is and will continue to be a threat, you have to look at the other side of that equation as well. Amazon recently revealed another 1 million-square-foot distribution center in the Houston market—which means thousands of jobs and more consumer confidence and spending.”
Meanwhile, he says, online retailers are continuing to move to bricks-and-sticks, establishing, at a minimum, a showroom-type concept to complete the customer experience they're offering online.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
