At a glance, many retail centers still proclaim the unmistakable evidence of recession; closing sales and vacant premises are everywhere. But is it wishful thinking to believe that in spite of this there are signs of a revival?
As a Californian I equate the current situation to the effects of our perennial wildfires. These regular and fearsome occurrences are essential to the ecosystem of the chaparral; they eliminate old growth and spur on the regenerative process. The current economic shake-up has achieved much the same in the retail industry and already I wonder if we are beginning to see the green shoots of renewal cropping up.
According to Greg Robb at MarketWatch in Washington, the June sales report offers some encouragement that the economy is about to revive. Retail sales rose a better-than-expected 0.6%, the strongest sales report since January’s 1.7% increase; adding weight to the perception that the U.S. economy may be at a turning point.
The appearance of some extraordinarily competitive rents for retail units has also had the effect of attracting bold retail ventures from newcomers with fresh ideas that can finally be realized with today’s less expensive leases and news from companies like Zara, who plan to open 450 stores here in the US over the next two years, can only inspire optimism for the retail apparel industry.
Looking ahead; opportunities to lease space at more realistic rates is great news for local and regional retailers who can now compete effectively with the national chains and create healthier retail landscape – encouraging more individuality and character as well as being more supportive and loyal to the local economy.
Perhaps more individuality might be just what it takes to stimulate people go shopping again…..
