{"id":681572,"date":"2024-06-25T05:37:02","date_gmt":"2024-06-25T12:37:02","guid":{"rendered":"https:\/\/www.esri.com\/about\/newsroom\/?post_type=wherenext&#038;p=681572"},"modified":"2024-07-03T12:56:20","modified_gmt":"2024-07-03T19:56:20","slug":"retail-vacancy-rate-falls","status":"publish","type":"wherenext","link":"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/retail-vacancy-rate-falls","title":{"rendered":"Retail Bankruptcies Rise, But That\u2019s Not the Real Story"},"author":501,"featured_media":0,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"sync_status":"","episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","castos_file_data":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","_links_to":"","_links_to_target":""},"categories":[],"tags":[],"department":[476812],"wherenext-category":[],"industry":[],"class_list":["post-681572","wherenext","type-wherenext","status-publish","format-standard","hentry","department-business-growth"],"acf":{"short_description":"Don\u2019t let the headlines fool you\u2014with bankruptcy rates high, the retail vacancy rate is still low. Some brands know just how to adapt.","pdf":{"host_remotely":false,"file":"","file_url":""},"flexible_content":[{"acf_fc_layout":"content","content":"In 2023, over 800 Bed Bath &amp; Beyond stores permanently switched off their lights\u2014the linen aisles emptied, the iconic signage gone. They were one of 26 retailers that went bankrupt last year, the most since 2020. This year is on pace to surpass that mark.\r\n\r\nCall it a dynamic shift instead of a downturn."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Left","content":"<strong>Snapshot<\/strong>: Despite some high-profile bankruptcies, the retail vacancy rate remains noticeably low, putting pressure on executives to find just the right location.","snippet":""},{"acf_fc_layout":"content","content":"US retailers are <a href=\"https:\/\/www.wsj.com\/real-estate\/commercial\/bankruptcies-have-left-more-stores-vacant-but-the-space-doesnt-sit-empty-for-long-729ae976\">expected to open more stores<\/a> than they close in 2024, according to <em>The<\/em> <em>Wall Street Journal<\/em>, but finding the right space could be challenging. Construction of retail buildings has been slowed by inflation and higher interest rates, and the retail vacancy rate is low.\r\n\r\nCompanies that have adapted to new consumer preferences\u2014a community-focused, omnichannel, experiential way of shopping\u2014are looking to expand in locations where other retailers have failed.\r\n\r\nLocation, always a key factor in business success, is now even more important. With the retail vacancy rate low, retailers feel added pressure to analyze markets and meet customers where they are.\r\n\r\nExpansion demands precision, and intuition is not enough; data is key to such high-stakes decisions. Retailers have prodigious amounts of customer data available to them, with sales transactions, loyalty programs, and online interactions revealing who their customers are. <a href=\"https:\/\/www.esri.com\/en-us\/industries\/blog\/articles\/creating-competitive-advantage-with-location-aware-processes\/\">Combining customer data with location data<\/a> surfaces valuable insights about <em>where<\/em> customers are, and <em>how<\/em> to engage them. Top retailers rely on geographic information system <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/enterprise-technology-behind-big-business-decisions\">(GIS) technology<\/a> for this kind of analysis.\r\n<h3><strong>Mapping Psychographics When the Retail Vacancy Rate Is Low<\/strong><\/h3>\r\nWith retail space in <a href=\"https:\/\/www.costar.com\/article\/523238330\/retail-supply-and-demand-likely-to-remain-in-balance-for-foreseeable-future\">short supply<\/a>, smart executives will look to analytics for an edge."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Left","content":"<strong>Related Reads:<\/strong>\r\n\r\n\/\/ What does omnichannel success <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/carhartt-omnichannel-success\/\">look like<\/a>?\r\n\r\n\/\/ Pondering <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/is-direct-to-consumer-a-ticket-to-growth\/\">direct-to-consumer<\/a> retail","snippet":""},{"acf_fc_layout":"content","content":"<a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/psychographics-market-analysis-moves-beyond-demographics\/\">Psychographic research<\/a> builds on demographic information to segment markets, helping retail planners better understand their target customers. Psychographic profiles comprise the attitudes, motivations, values, opinions, and other characteristics of consumer groups, and GIS technology brings psychographic research to life by grounding it in geography\u2014a form of <a href=\"https:\/\/www.esri.com\/en-us\/location-intelligence\/overview\">location intelligence<\/a>.\r\n\r\nOne of the world\u2019s largest commercial retail firms analyzes <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/the-world-leader-in-commercial-real-estate-tells-a-new-story\/\">psychographics<\/a> when designing shopping centers to fit the communities they serve. In one location, GIS-based analysis revealed that a shopping center was a destination for families. With this information, the firm added spaces for family-centric events, concerts, yoga classes, and pet-friendly amenities, and drove the retail vacancy rate below 10 percent.\r\n<h3><strong>Omnichannel Sales Data Informs Smart Expansion<\/strong><\/h3>\r\nLocation intelligence also informs the expansion strategy for a <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/carhartt-omnichannel-success\/\">popular work apparel brand<\/a>.\r\n\r\nAs the company\u2019s omnichannel strategy matured, leaders sought to understand the relationship between a growing e-commerce presence and the performance of physical stores\u2014including company-branded stores and those of retail partners that carry their apparel.\r\n\r\nGIS technology helped contextualize customer behavior and gave decision-makers a way to view performance by location. Now, it\u2019s even offering predictions. As <em>WhereNext<\/em> reported, the company relies on:"},{"acf_fc_layout":"blockquote","content":". . . an advanced form of location analytics that crunches sales data from multiple channels along with information on consumer demographics to predict how a geographic market will perform. It represents the next stage of strategic planning for omnichannel retailers . . ."},{"acf_fc_layout":"content","content":"In a time where expansion opportunities are limited, the stakes are too high for a guessing game. With GIS-driven location analysis, apparel brands, restaurant chains, grocery stores, and other retailers are transforming data into guidance as they decide on their next expansion sites."}],"references":null},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.9 (Yoast SEO v25.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Low Retail Vacancy Rate Elevates the Importance of Location<\/title>\n<meta name=\"description\" content=\"Despite some high-profile bankruptcies, the retail vacancy rate is low, and companies need sharp analysis to select the right location.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/retail-vacancy-rate-falls\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" 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