Retailers who continue to use the same strategies and fail to make adjustments are the ones that will continue to struggle with current economic and market conditions. According to GlobeSt.com, many retailers are continuing to perform poorly, but decreased storefront sales don’t necessarily translate to store closures. These days it is normal for retailers to look at culling poor-performing stores via closures or the downsizing of their footprints square footage.
Downsizing can create both opportunities and problems for landlords. Looking forward, landlords need to be thinking proactively about their portfolios moving into 2012 and try to anticipate where their retailer issues might be. The main factors going into the decision of whether or not to close are the market, quality of the property, and location. When it comes down to it, struggling stores located in tougher locations are the ones most likely to close.
To read the full article from GlobeSt.com, click here.