Findings in 1st Quarter Southeast US Market Report Available Online
Crossman & Company, one of the Southeast’s largest retail leasing, property management, and investment sales firms, has released its much anticipated 1st Quarter 2017 Southeast US Market Report Update, Ranking Retail Tenant Activity: Stop, Wait, Grow…Merge?
As the industry heads into RECon this month, the report reflects how, in this changing environment, retailers are increasingly forced to be creative, seeking new partnerships, franchisees, and co-tenants, as well as exploring how to best leverage brands and ecommerce platforms.
“Our research examined a variety of retailers and measured their relative health and stability by their announcements of store openings or closings,” said Crossman & Company President John Crossman. “We have used stoplight metaphor in the past to ‘rate’ retailers, and now have added other traffic signs to better capture other measures of retailers’ health.”
Some struggling retailers have opted to merge with stronger ones to avoid the chopping block. The report’s special section covers ongoing and completed mergers and acquisitions.
The seven-page report analyzes a wide range of retailers and their relative health and stability as indicated by announcements of store openings and closings, earnings reports, forecasts, and market activity. Groups of retailers are categorized by well-defined red, yellow, or green light designations as well as merge and detour:
Red Light: These retailers have consistent losses over a number of years, filed for bankruptcy, or are trending downward.
Yellow Light: These retailers have triggered public attention with store closures. They can reposition in the market, but are vulnerable if they misstep.
Green Light: These retailers are leading the pack, and have announced major initiatives to capitalize on their momentum.
Merge: These retailers have or are undergoing mergers, or have been acquired by other retailers or companies.
Detour: These retailers began online and are expanding into physical stores.
Some of the Crossman & Company report’s insightful findings:
Discount retailers continue their expansion and show surprising breadth in their target audiences.
In the investment world, value lies in being the ‘early adopter.’ Legacy retailers scrambling to evolve need to keep this in mind, and refrain from jumping on bandwagons and slashing store counts to stem losses and pump up returns for investors.
Though there are many retailers whose slow demise has been well documented, there are popular concepts facing pressures that can’t be explained away by falling foot traffic.
Classic department stores continue to revise their offerings as quick-serve restaurants and gyms can ramp up growth without taking on all the risk through franchising judiciously.
“The first quarter findings reflect the retail market as a dynamic one, subject to tremendous public scrutiny. Retailers must be savvy, forward-looking, and fearless as they do business,” noted Crossman & Company Research Manager Jennifer Jackson.
The complete report is available online and the Crossman & Company research team will be available at ICSC RECon at the Las Vegas Convention Center, May 21-24, booth SMR 221 in the South Meeting Rooms, between the Central and South Halls.
Crossman & Company is the premier commercial real estate firm with offices in Atlanta, Ga., Orlando, Tampa, Miami and Boca Raton, Fla. focused on serving retail landlords exclusively throughout Alabama, Florida, Georgia, Mississippi, North and South Carolina, Tennessee, and Virginia. Founded in 1990,
Crossman & Company has built an ever-growing retail portfolio more than 374 properties and 28 million square feet.
For a copy of the 1st Quarter 2017 Southeast US Market Report Update, Ranking Retail Tenant Activity: Stop, Wait Grow…Merge? visit www.crossmanco.com.
About Crossman & Company
Crossman & Company is the premier real estate firm focused on serving retail landlords exclusively throughout the Southeast – with offices in Atlanta, Boca Raton, Tampa, Miami and Orlando – representing more than 370 shopping centers and 28 million square feet in Alabama, Florida, Georgia, Mississippi, North and South Carolina, Tennessee, and Virginia. The company was founded in 1990 with the goal of providing exemplary service to our clients around four core values: Maintain enthusiastically satisfied clients; Demonstrate servant leadership; Practice kindness, openness and humility; and Develop new talent. For more information, visit the company’s website at www.crossmanco.com.
