Many magazines and news sites are predicting the downfall of brick and mortar stores in the future, suggesting that online shopping and other forms of retail will take over the industry. Jeffrey Roseman, the Vice Chairman- Retail Division of Newmark Knight Frank, said otherwise in a recent chat with Marketscale.
According to Roseman, brick and mortar stores are not going away. He pointed out that even as many legacy stores have closed, there are still different stores opening. “A lot of these companies have been in business 50 or 60 years,” Roseman explained about legacy stories as he highlighted that there are now new companies that are doing what “tired” companies do, except the new stores are doing it in better, modernized ways.
Speaking about good retail investments, Roseman said he suggests looking for unique spaces and good frontage. Entrepreneurs should have solid business plans and be in it for the long run. Roseman said he “expects to see many new companies last for as long as legacy companies have.”
When it comes to changes in retail, Roseman added, “the bones of it haven’t changed, but there is a lot more data.” Using data can also help improve decision-making about investments in new retailers. However, Roseman said, it’s still important to “go with the gut.”
Given as an example of why Roseman is hopeful for the future of retail and brick and mortar stores, Hudson Yard was highlighted. Roseman called it a “bell weather of things to come.” Representing a new wave of retail stores, Hudson Yard has interesting concepts, great food choices, and art installations. “It’s a trip to go…you’re not only going in to buy shoes,” Roseman said.
Despite the challenges of many brick and mortar legacy stores, including rent rates and labor issues, Roseman said the future looks bright. “People don’t want to stay home to shop in their bedroom,” he concluded.