Mall Landlords Are Out of Sync with Retailers’ Biggest Concerns
Retail Real Estate Beat - A Survey from FTI Consulting
The FTI Consulting Retail Real Estate Beat survey reveals a significant gap in the perceptions of mall and shopping center landlords and their retail tenants about the role of brick-and-mortar in the future of retail. Respondents demonstrated a disconnect about such priorities as location, store design and configuration, as well as conflicting views of the impact of online shopping on the retail industry’s brick-and-mortar needs.
The survey results also demonstrated divergent views of landlords and retailers about business issues such as competitive pricing and advertising and marketing support, as well as the impact of evolving consumer demographics and the shift to shopping online.
Key Findings include:
- While 93% of landlords agree or strongly agree that new stores are critical to retail sales growth, just 61% of retailers agree or strongly agree.
- Owners believe being near other high-traffic retailers (87%) and a compelling architectural design and physical environment (73%) are the two most important benefits a landlord could offer a retail tenant. Fewer retailers (66%) say high-traffic locations are most important and cite convenient parking (52%) as the second most important benefit.
- One of the biggest disconnects between landlords and retailers is the concern about evolving consumer demographics and preferences: 70% of landlords cite this concern; while only 40% of retailers raise this issue.
- Only 33% of landlords agree that shoppers require a more personalized in-store experience compared to 73% of retailers.
- Landlords (60%) agree or strongly agree that customers are shopping in stores less often, while only 37% of retailers agree or strongly agree.