Retail industry enters a new phase of innovation and safety
Arguably, the biggest business lesson from Covid-19 is that modern-day retail success is synonymous with flexibility and adaptability. Reflecting on the malls that decided to re-open, differentiation or special themes will become strategies used by landlords and retailers to survive mass store closures and demand challenges from customers.
Destination properties will experience the biggest rebound. Despite this, landlords are expected to continue working with retailers to keep occupancy rates up. As a result, some landlords have become more open to negotiations with tenants looking for space.
Despite an expected slowdown in retail sales, the short-term outlook for the retail market is positive, as a result of the loosening in public activity restrictions and the expected resumption in commuter patterns as many office workers return to the office, at least on a part-time or hybrid basis.