Discretionary and Experiential Retail Face Seismic Shift, But Transformation Has Already Begun
Store reopenings brighten retail center outlook. As shelter-in-place orders abate across the nation, more retailers are opening their doors. Segments hit hard by sequestration including apparel, home goods and sit-down restaurants all posted an increase in foot traffic since the beginning of April. Customer volume at outperforming sectors — including grocers, dollar and drugstores, and mass merchandisers — have returned to more normal levels. Businesses with an omnichannel presence also fared better as shelter-in-place households conducted a greater portion of their shopping online, boosting e-commerce sales. Many households placed orders online and picked up at local stores. After the coronavirus threat eases, this trend will likely stay and may require a redesign of parking lots and center layouts to facilitate pickup capacity.