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Surviving the Retail Shift

By Kelly D. Stohs and David P. Vallas

Shopping centers are not dying. The retail landscape is changing, however, and so too are shopping centers. Retail stores have been closing at a breakneck pace, and Wall Street seems to think the worst is yet to come. Investors are more negative on the retail industry than at any time since September 2008, according to Bespoke stats on the average percentage of shares of retailers being shorted.

The volume of store closings is challenging shopping center owners to evolve. Industry expert Michael Glimcher reportedly noted that the mall is becoming more about things to do than about things to buy. Shopping center owners have responded by finding creative uses for vacant spaces and ways to enhance the customer experience.

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