May 20, 2018
By Lauren Farhat
Niche retailing should be considered risky business, right? Well, think again. According to Dees Stribling in this Bisnow national story, up-and-coming retailers can still look ahead to a bright future, but, “the niche has to be right.” With some retailers across the nation closing up shop, some such as Dutch men’s clothier Suitsupply, Magnolia Bakery and Club Pilates aren’t ready to be put to rest.
Suitsupply initially grew its brand in countries overseas. Unlike many other men’s clothing suppliers, the company now has big plans to expand beyond its 33 already existing stores in the U.S.. In selling, off-the-rack suits that are more expensive than mass-market but not as pricey as custom suits, the company’s niche is a perfect fit for cities like Brooklyn, Manhattan and Boston.
Retailers Focus on Niches
According to the Wall Street Journal, New York City brand Magnolia Bakery is also planning an expansion of franchises over the next few years. Except this time around, the company’s strategy isn’t to leverage from the sole success of its cupcakes, but the other parts of Magnolia that just as equally establish sales.
Other deep-seated commercial real estate retailers are those following the rage in the newly hot and trendy fitness world. Fitness chains such as Club Pilates, have been replenishing unoccupied spaces once filled by their failed retailer counterparts. Next year, Club Pilates foresees 5% to 10% of their locations occupying these types of retail spaces.
Will this niche approach work for retailers? It just might. As the industry transforms, look for more creative approaches that target niche markets. Consider how retailers are using a mix of online and bricks and mortar, for example.