Without attention to technology, retail will likely experience continued stress.
Jacob Frydman has seen fewer and fewer retail properties being developed over the past few years as a result of more online shopping and more competition, especially in big cities. U.S. retailers seem to be expanding internationally at a faster pace than in recent years; however, while they are gaining “brick-and-mortar” locations abroad, the reverse does not hold true, as the American retail market is often too expensive and competitive for international retailers to do well. Among American-owned companies, the physical retail market is much more closely tied to how well they have managed to attract buyers in a virtual space.— Property developer
According to Reis, Inc, a company that provides reliable real estate market data, healthier neighborhoods and community retail centers are closely connected to how diversified its markets are. Right now food and beverage retailers lead in sales, with luxury and business following close behind, and then mid-range fashion in third place. Reis also points to the technology of retail chains making an impact on the market. Analysts predict that retailers who can hold onto their profits and even expand their businesses will be those who can adapt to customers’ desire for seamless in-store and online shopping experiences.
Jacob Frydman notes that without attention to technology, retail will likely experience continued stress from the shifting demands of customers who increasingly prefer to shop online. For example, during the 2015 Black Friday shopping weekend, online purchases outperformed in-store purchases for the first time ever, signaling a new trend in consumer behavior during the busiest shopping season of the year. But people are not yet ready to give up physical locations for browsing, socializing or comparison shopping.
A primary example that corporate retailers will be watching closely is Amazon, already a giant in the online retail space. In the fall, it opened a physical bookstore in Seattle and will likely continue to open dozens more in a variety of markets as it tests this model. Amazon may drive other stores to adopt this same model of physical showroom that complements the digital fulfillment space. However, for some stores like Sears, JCPenney and Kmart, the struggle for a share of the U.S. business continues, and it may be too late for some companies to shift gears. American consumers will continue to see closures among corporate giants that were once household names for some time to come.
Over his 30-year career, Jacob Frydman made a lasting impression with the property investment industry. Through his vast experience in structuring, financing, and executing highly complex real estate transactions, he has acquired over five million square feet of American property and has participated in investments valued at over $2 billion. He often speaks at Columbia University and in the Master's Lecturer series at New York Law School, discussing business, law, and ethical elements of real estate management to aspiring students. Frydman is an avid philanthropist, who cares greatly for his Jewish community, and supports many other charitable committees, including The Chabad of Dutchess County and The Brem Foundation, which focuses on the eradication of breast cancer among women and men in the Washington DC metropolitan area.
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