What Gives Retailers a Competitive Edge?

DALLAS—Retailers are getting creative to bat back Amazon’s advances. Many have been successful by being nimble, forward-looking and willing to embrace changing consumer preferences, Todd Rollins, senior director–portfolio manager with TH Real Estate, tells GlobeSt.com.

Rollins says traditional retail stores will need to invest in e-commerce capabilities such as how Walmart did with its purchase of Jet.com. In addition, pure play e-commerce retailers should invest in physical stores to build brands and drive profitability. One of the biggest examples of this is Amazon’s purchase of Whole Foods and its opening of physical stores in order to provide the omni-channel retail experience consumers expect. Successful retailers that provide creative solutions for last-mile delivery such as online payment and in-store pick-up strategies are getting an edge.

Also, retailers that are drawing on consumer data to better understand behaviors and preferences have found those methods to be a competitive edge. Finally, retail centers are rebranding to not only provide a mixed-use component but also include a mix of curated tenant choices so the shopping experience makes sense to the average shopper.

“Landlords are remerchandising centers to diversify revenue streams to create a combination of multiple uses, i.e., hybrid retail,” Rollins tells GlobeSt.com. “This is creating a scenario in which the distinction between traditional retail sub-types (grocery, power, lifestyle) will likely blur over time. Power centers may include grocery stores, while malls may have mixed-use components developed on site. Grocery-anchored centers may also include fitness and entertainment uses. At TH, we look for opportunities where a tenant departure presents an opportunity rather than a threat. For example, centers where we can diversify the offering to include authentic and curated experiences to compliment traditional shopping venues.”

To be sure, there are a number of recent redevelopments and backfilled vacancies in DFW that fit that description, according to Weitzman.

WinCo Foods demolished a vacant anchor space and opened during the first half of the year in a new 85,000-square-foot store at Trinity Valley Shopping Center, located at SH-190 and Josey Lane in Carrollton.

Market Street opened its second Frisco location on Legacy Drive near Lebanon in early 2018. Market Street totals 62,000 square feet opened after redeveloping a former Walmart Neighborhood Market.

Altitude Trampoline Park will open in 2019 in backfilled junior anchor space in Cityview Centre, located at the southwest corner of Loop 820 and Bryant Irvin Road in Fort Worth.

GlowZone, a family entertainment concept, should open by year-end in a 46,000-square-foot space in Lakepointe Crossing, a Lewisville center on IH-35 anchored by Academy Sports + Outdoors and At Home.

Punch Bowl Social, a Colorado-based bowling and “eatertainment” concept plans to open two new area locations in backfilled space, including a 12,500-square-foot location in a former Times Ten Cellars space at 1100 Foch Street in the West Seventh corridor in Fort Worth. The Times Ten space closed during the first half of 2018 and the quick re-tenanting is an example of the demand for space in the market’s strongest retail districts. Punch Bowl Social will also open in a 23,000-square-foot space in the urban Deep Ellum district at 2600 Street at North Good-Latimer Expressway. The space, vacant for several years, formerly housed Copper Tank Brewery and club.

Gander Outdoors, an outdoor-focused sporting goods store, backfilled a 45,000-square-foot space at 6001 Quebec St. in northwest Fort Worth, near the city’s border with Lake Worth. The space was vacated in 2017 by Gander Mountain after it filed for bankruptcy.

CVS opened a two-story location in downtown Fort Worth in a space formerly occupied by a sports bar.

Sam’s Club will open a new concept in an approximately 32,000-square-foot vacancy at Greenville Avenue and Richmond Street in Dallas. The smaller-format Sam’s, designed to be primarily focused on food, will occupy a site vacated by Walmart Neighborhood Market several years ago.

Alamo Drafthouse opened during the first quarter of 2018 in a former grocery store space at Abrams Road and Skillman Street in East Dallas.

Specs Wine, Spirits and Finer Foods is opening in a portion of a vacated grocery store at the northwest corner of Dalrock Road and Lakeview Parkway in Rowlett. Spec’s also plans a new location on SH-78 at Woodbridge Parkway in Sachse.

Junior anchor concepts, ranging from approximately 20,000 to 35,000 square feet, such as Home Zone Furniture, Duluth Trading Co., Chair King and Dirt Cheap discount stores, have been expanding in markets such as Arlington, Denton, Garland, McKinney and Richardson by leasing existing vacancies.

Central Market, the upscale concept from H-E-B, has a planned 2018 location opening in a former Albertsons at Northwest Highway and Midway Road.