Retailers have faced rough seas over the past few years. The pandemic exacerbated the growing changes in consumer shopping habits. No longer was online shopping simply a convenience, it was a necessity. With such a massive and abrupt change, retailers were forced to come up with solutions with only the resources at their disposal.
Fast forward a few years and some pandemic trends have remained. Curbside pickup is now an option for most major retailers and supply chain issues continue to pop, albeit not to the extent of the pandemic.
These trends – along with others – have led to a shift in how retailers approach their lease management and particularly their lease renewal strategy. Let’s take a look.
Curbside Pick Up Calls for Reimagined Storefronts
With many consumers opting for the convenience of curbside pickup, retailers have to consider the long-term logistics of their parking spaces. They know that if their parking lot causes headaches for their customers, those customers will find other places to shop.
Retailers increasingly look for spaces that offer the ability to control two different traffic flows – curbside pick-ups and in-store shoppers. Spaces that offer either a turnkey solution or can easily be retrofitted to separate these two traffic flows will be prioritized as companies consider their lease renewals.
Supply Chain Issues – Will Retail Stores Shrink?
Online shopping had already shifted consumer behavior a great deal before the pandemic and now that supply chain issues add uncertainty, retailers are left to wonder if they need all that square footage. Large retailers were already experimenting with smaller footprints before the pandemic and if they are going to face ongoing uncertainty as to their stock, smaller stores may be the answer. As retailers review their lease management, they will look for spaces that reflect the future of their business and not the past.
Greater Focus on Sustainability
Retailers have become even more cost-conscious over the past few years. With many having already made commitments to sustainability, they are using this time as an opportunity to realize a two-fold commitment. Retailers are looking to realize the cost savings of green initiatives, reaching their sustainability goals along the way. Buildings that already have fixtures and infrastructure in place will become the top choices for retailers as they consider their lease management.
Partnering for Strategic Retail Lease Management
Plot your strategy as you guide your business to a new era in the retail sector. Scribcor is here to provide accurate leasing data so that you can make the most informed decisions possible. Reach out today to begin your retail lease management strategy.