Landlords and Retailers Out or Sync.
Position | THE MALL |
A significant gap has been found in the perceptions of mall and shopping center landlords and their retailer tenants about the role of brick-and-mortar stores, as well as retailers' top business concerns. According to a survey by FTI Consulting, Inc., Washington, D.C., 61% of retailers agree or strongly agree that new stores are critical to their sales growth, while as many as 93% of landlords agree or strongly agree. Conversely, 33% of landlords, compared with 73% of retailers, agree or strongly agree that shoppers require a more personalized in-store experience.
When it comes to brick-and-mortar stores, landlords and retailers also view real-estate benefits differently. Landlords believe that being located near other high-traffic retailers (87%) and providing a compelling architectural design and physical environment (73%) are the two most-important benefits they could offer a retail tenant.
Meanwhile, 66% of retailers surveyed believe being located near other high-traffic retailers is the most-important priority for their brick-and-mortar locations, followed by convenient parking (52%). Only 44% of retailers believe a compelling architectural design and physical environment are important. The biggest disparity in priorities is found in the value of flexible store configuration-40% of retailers say this is important compared to 10% of landlords.
"While it may not come as a total surprise that landlords place a greater value on the physical location of the store than retailers do, these variations in perceptions present a real opportunity for landlords to work more closely with their retail tenants to explore how they can support their growth plans," says Cynthia Nelson, senior managing director in the Real Estate & Infrastructure industry group at FTI Consulting.
Christa Hart, senior managing director in the Retail & Consumer Products practice, adds: "Our research also suggests that many retailers are...
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