Forecast: Value stores, luxury shops, restaurants to lead retail development in 2013
Chicago -- The value and luxury classes of retail will supply the most construction opportunities in 2013, according to a forecast by Englewood Construction. The Lemont, Ill.-based commercial builder also predicted an uptick in restaurant development and a squeeze on middle-market retail.
While value-based stores and high-end shops meet today’s retail demands, the development of both destinations will look different in 2013. Unlike the segregated past with the big-box value seeker shopping in a completely different locale than the high-end couture spender, said William Di Santo, president of Englewood Construction. He predicts more integration, with these two types of shoppers strolling down the same retail street.
“No longer will new or renovated shopping centers only cater to one set of buyers or income bracket, but rather, most locations will offer a wider variety of retailers,” Di Santo said.
Despite recent growth in the value and luxury segments, internet shopping has taken a toll on brick-and-mortar operations. But mall owners and developers are turning to a different type of tenant to fill vacancies – restaurants.
“Fast-casual food franchises inside shopping centers and new stand-alone restaurants on out lots have become a major driver of commercial construction projects,” Di Santo said. “Restaurants still offer an experience and entertainment value that the online market cannot compete with.”