By Jamie Barrie A ccording to Jan Kniffen, chief executive officer of J. Rogers Kniffen World Wide Enterprises, a retail con- sulting firm, convenience is what is winning custom- ers over in the retail sector. However, they would rather be in store, where they can see the actual item not a virtual image and holding something or even try it on. It is estimated that between 10,000 and 12,000 physical brick-and- mortar retail locations will close this year. However, around 6,500 new ones will reopen, just not where you might expect them to be or under the same name. Large retailers like; GAP, Ulta, Target, Dick’s Sporting Goods, Dollar General, Ross and Aldi all have announced that they plan to open new locations in 2018. GAP which is closing some 200 GAP stores, have plans to open 270 new locations of its Athleta and Old Navy brand locations by 2020. Customers are looking for convenience and value regard- less of what segment of the retail market you are in so, if you are not local, value-price- oriented or online, it is most likely that you are losing market share in retail right now.
a trend, how customers will shop now and in the future. unless you are local or a value-priced retailer.
As for local, just look at the incredible success of the inde- pendent craft brewery industry which is one of the fastest growing sectors and is built on being local and communi- ty focused and continues to win market share over mac- ro-breweries. As for malls, it does not take an expert to see that retail growth is happening out-side of the mall these days, you just have to go to one and have a quick walk around to see the empty retail spaces, which is part of the problem. Malls tend to be in locations that are generally further away from people and harder to get to, which is what is keeping people away. In saying that, there are some retail winners that thrive in mall locations and continue to grow like Lulu- lemon, Ross, T.J. Maxx and Ulta. There are always winners when it comes to retail, but some- times it seems that who you are, what you sell and where you are located will play a much more important role in your success and if you are located in a mall then you are stacking the deck against you.
Amazon has taught the retail sector that convenience belongs to the consumer and that online shopping is not
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APRIL 2018 • SPOTLIGHT ON BUSINESS MAGAZINE
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