Connect with us

Headlines

More Store Closings Ahead: Real Estate Expert

Retail sector’s struggles stem mainly from reduced discretionary spending.

mm

Published

on

More signs like these will likely continue showing up into next year, a retail observer predicts. PHOTO: ISTOCKPHOTO

A spate of store closures looms in the months ahead due to a still-underappreciated degree of distress in the American retail sector, A&G Real Estate Partners Co-President Andy Graiser said in an recent online panel discussion.

“Reduced discretionary spending is really becoming the biggest issue for retailers,” Graiser said, pointing to a “disconnect” between landlords’ positive perceptions of retail performance and “how volatile and troubling this situation really is” for many chains.

“I see a lot more distress this year than I expected,” Graiser noted in a news release summarizing the seminar . “We’re getting a lot of phone calls, and it’s hitting every sector.”

The webinar, “Market Outlook — Insights on Retail, Consumers, REITs, NNN & Shopping Centers,” focused largely on consumer behavior and chains’ financial health. Moderator and Telsey Advisory Group CEO Dana Telsey kicked off the discussion by pointing to more careful spending across “a wide range of income levels.” Telsey noted that trading-down behavior continues to bolster traffic at discounters such as Walmart and Costco.

The retail real estate investment trust (REIT) Simon is just one example of a landlord that has “talked about how consumers are still shopping, but have pulled back on everyday spending,” said panelist Linda Tsai, part of Jefferies’ REIT Equity Research Team. “They’re holding out to save for occasions like holidays, birthdays and experiences. Overall, Simon has seen outperformance in its outlet business.”

A&G’s Graiser predicted continuing retail distress into the middle or end 2025. Citing the recent liquidations of 99 Cents Only and Conn’s HomePlus, he noted that more retailers could suffer the same fate in the year ahead.

Advertisement

Click here to watch the webinar.

Advertisement

FEATURED VIDEO

Sponsored by Cogent Solutions Group

Reduce Your Pet’s Hip & Joint Discomfort with the Most Researched Hyaluronan on the Market

Nearly 60% of dogs and 90% of cats suffer from joint discomfort. Trixsyn joint supplement contains a patented and proven hyaluronic acid molecule for maximum efficacy to promote joint, bone, soft tissue, and cartilage health, keeping your pet feeling comfortable, for longer. Trixsyn is veterinarian recommended, safe and all-natural, and contains research-proven ingredients. Get your paws on the most-researched hyaluronic acid on the market. Learn more at Trixsyn.com.

Promoted Headlines

Most Popular