I’ve talked a lot about the downsizing trend over the past several months, but lately I’ve begun to wonder at what point we stop looking at this as a trend and begin looking at it as a fundamental shift in the big box and power center dynamic. In my latest Retail Rap column, I examine this shift, how it will effect power centers moving forward and look at how both landlords and stores can take a proactive approach to survive and thrive in the long haul.
What is going to happen to the power center if the Office Depot-Office Max consolidation is followed at some point by a Best Buy bankruptcy or repositioning? There are plenty of analysts who think that Barnes & Noble might be another candidate in the next few years — that the bookseller’s recently announced plans to close approximately one third of all Barnes & Noble locations in the next decade might just be the beginning, and a more rapid restructuring of its existing portfolio is unavoidable. Keep in mind that this is coming on the heels of loss of national brands like Borders, Linens N’ Things and Circuit City over the last ten years. That’s a lot of square footage to account for.
Check out the full article from my recurring column, Retail Rap, at Chain Store Age.