@RegencyCenters Blog

Discount Retailers and Grocers Poised for Profits Before Holiday Shopping Begins

Consumers traditionally expect to find deep discounts from retailers during the Labor Day weekend and into the winter holidays. However, discount retailers like Nordstrom Rack, HomeGoods, HomeSense, and grocers like Aldi and Lidl have made it their core strategy to cash in on a cash-strapped market by offering quality products at discount prices all year long. Moody’s vice president Mickey Chadha indicates that cash-strapped consumers are a driving force behind dollar stores faring among the top performers in 2017, according to a recent CoStar article.  

For example, as the Market Realist reports, while Nordstrom’s upscale full-price stores have not been performing well, the company’s off-price Nordstrom Rack stores and online channels are delivering good results. Department stores like Macy’s, JCPenney, and Sears have closed hundreds of stores while companies like TJX, the parent company of Marshalls, HomeGoods, TJ Maxx, and the new HomeSense, are showing an increase in sales, according to Worcester Business Journal. Shawn Harris of Zebra Technologies explained to Forbes, that full-priced traditional furniture stores should keep their eyes wide open due to losing shoppers to discount retailers like HomeGoods.

Grocery stores, too, are responding to consumer demand for discounts by shifting their business models in several areas, such as downsizing stores, investing in store brands, and offering lower priced, high quality produce.

Discount grocers like Aldi, Lidl, and the smaller format stores coming to a town near you are witnessing sales growth and expansion of new stores. Since these discount grocers can be smaller than traditional stores, a limited assortment of products fill the shelves. However, the growth remains strong. As Forbes reports, between 2011 and 2016, store counts increased 17.6% across the U.S, and Nielsen Homescan panel data shows that grocery shopping trips grew the most at discount grocery retailers.  

In addition, discount stores are rising to the top in the area of beauty and fashion. Business Wire confirms both Generation Z and Millennials are looking to discount stores over traditional beauty stores for beauty products. When asked where Generation Z has purchased beauty products in the last 6 months, 55% said discount stores, and for Millennials, 49% said they shop discount stores.

With the holidays quickly approaching, and giant retailers like Amazon, Walmart, and Target preparing again to launch their Black Friday offensives, discount retailers may be drawing in some early Christmas shoppers even now, as fall breezes in and summer fades away. As retailers continue to seek ways to draw shoppers into their stores, they may need to factor not only product variety and store formats into the equation, but also deep discounts as a shift in retail strategy.

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How Anchor and Co-Anchor Stores are Changing the Face of Shopping Centers

While the trend of grocery-anchored shopping centers continues to sweep the nation, there is an undercurrent of co-anchoring where more than one store holds similar size space in a retail development. In part, this is because many stores, even grocery stores are turning to smaller format stores. CCIM Institute credits e-commerce as a driving factor for retailers to shift formats, looking to “right-size” or downsize their footprints. Combined with department store closings over the past decade, CRE owners are repositioning and renovating shopping centers to offer square-footage that is more in line with these retail trends.  

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The Power of Green Retail--REI Among the Nation’s Best

From packaging to power, green retail continues to shine in shopping malls and stores throughout the retail industry. Where once recycling and recycled products could qualify retailers as environmentally conscious, green retail has stepped up its game to bring more sustainable measures to improve the world in which we live, work, and shop. A sign of these changing times is revealed in the EPA’s recent Top 30 Retail list of largest green power users among retail partners within the Green Power Partnership. Among the top ten are top retailers like Kohls (#1), Best Buy (#7), and REI (#9).

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Chapel Hill's Blue Hill District Comes to Life

The Blue Hill District covers 180 acres targeted for redevelopment and reinvestment, in Chapel Hill, NC.

Regency Centers recently partnered with other developers to make Blue Hill District a place where people work, live and play.

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Book Retailers Plan for Success with Bricks, Mortar, Books and More

In an age where digital drives so much of what we do, when it comes to books, print is still outselling digital, which may be why so many independent bookstores continue to compete in the marketplace. Even big book retailers like Amazon are seeing the light when it comes to physical stores, but books are not the only attraction to these brick-and-mortar stores. From deep in the heart of New York City to the suburban America near Scarsdale, New York, bookstores are offering food, comfort, community, and customization.

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Shop Kohl’s for Amazon Echo, Fire & More

Kohl's Corp. announced Wednesday, September 6, that shoppers will be able to buy Amazon Echo, Fire tablets and other gadgets from select brick-and-mortar Kohl's stores. Customers in the Chicago and Los Angeles areas will be among the first to experience the 1,000-square-foot Amazon shops. Planning for 10 of its stores to feature these Amazon shops, Kohl's will also offer customers a personalized service where an Amazon employee can come to a customer's home and install a device or suggest products to buy.

With 11 Amazon bookstores opening in the last two years, the addition of Amazon shops in Kohl's may be an option for other retailers waiting in the wings. Read more here.
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Fresh Look Stories, Summer 2017

Fresh Look® isn't just a philosophy; it's the driving force behind creating ideal locations with best-in-class retailers representative of the communities we serve.

We combine unique placemaking designs with the right merchandising mixes, and connect with our shoppers through community outreach and an active social media presence. These innovative destinations are crafted one at a time by our team. Take a closer look at our most recent Fresh Look success stories in action:

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Starbucks’ Sign Language Aprons Help Build Inclusion

What happens when two people from opposite sides of the world find common ground to communicate? For Starbucks at least, a few barriers were broken after introducing to some of its stores a better way for hearing impaired baristas to communicate.

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Fresh Offerings From First Watch: A Fresh Look Story

Imagine starting your morning off right with crunchy whole grain artisan toast topped with creamy burrata cheese, colorful marinated heirloom tomatoes, freshly chopped herbs, and a sprinkle of Maldon sea salt served with two cage-free eggs plus shredded parmesan. Pair it with a fresh juice and piping hot tableside pitcher of organic coffee, and you’ll get a full First Watch experience.

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