While e-commerce is often blamed for struggles in the retail sector, there are several other factors at play, according to Real Capital Markets’ recently released 2017 Retail Sentiment Report, which gauged opinions from investors across the U.S. The study examines changing consumer habits and how some survey respondents are trying to reinvent their approach to retail.
Among the study findings are:
- Shifting consumer buying habits are the greatest threat to the industry. From e-commerce to in-store pickup and attitudes toward power shopping centers, shifting consumer habits have the eye of retailers as they try to navigate this current retail climate. Disruption has hit the retail industry and investors are aware of its impact and looking for ways to mitigate risks.
- Most investors feel reinvention is the key to solving the industry’s greatest issues. In light of large tenant shake-ups and e-commerce pressures, investors are looking long-term at where retail is heading and what investments make sense.
- Anchored shopping centers are the preferred property type for investors by a margin of 3:1. In this category, centers anchored by grocery tenants are preferred, as this sector is considered secure against e-commerce.
- More than 57 percent of investors surveyed are net buyers of retail properties, an indication investors looking for opportunities and the ability to “balance” portfolios previously buoyed by other asset types.