| A Weekly PropTech Newsletter bringing you industry updates from across the real estate spectrum |
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| Happy New Year, dear readers! We hope you finished 2024 with celebration and rest, and have welcomed 2025 with the same enthusiastic, fresh energy that we have!
With the end of the holiday shopping season, we have officially transitioned to the post-holiday return season, or what has been dubbed by some as “Returnuary.” And while this period of gift returning and exchanging is predicted to be a bit busier than last, which can seem to present a problem, it also presents an opportunity. A return is a key activity in the shopper journey where a positive experience can create customer loyalty. That spans from the return policy itself, to the options provided for making a return, which is where the property owner comes in. What is the physical return experience like? What options do you have for returning online only retailers in-person? Are there lease provisions to determine how to quantify returns in monthly reporting? As a property owner, this is a place to provide value to your tenants and create loyalty among shared shoppers with the experience your center provides and the options you have in place. And while it may be Returnary, returns of course happen all year long, so if you don’t feel up-to-snuff right this second, it’s not too late to make improvements – we’re here to help.
Over the holidays a few big changes in retail ownership took place; a major acquisition completed, creating a luxury power player; a family brand finally went private; and the party is ending (again) for a mainstay. New year, same LinkedIn – please check us out there! |
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| ‘Returnuary’ — after the peak shopping season comes the busiest return month of the year [CNBC] After this season’s peak holiday shopping days, retailers expect their return rate to be 17% higher, on average, than usual. By the end of 2024, returns are expected to total $890 billion.
Saks Closes $2.7 Billion Neiman Deal, Creating Big Luxury Player [BNN Bloomberg] Saks Global completed its $2.7 billion acquisition of Neiman Marcus, creating what the company says is a multibrand luxury giant that’s powered by the technology of its high-profile investors, Amazon.com Inc. and Salesforce Inc. |
| Boom in US retail real estate defies prediction of ecommerce apocalypse [Financial Times] The retail real estate market is showing strength, with vacancies at open-air shopping centers reaching record low levels, according to CoStar data stretching back to 2006.
With every company entering the ad business, here’s what to expect from retail media networks in 2025 [ModernRetail] Retail media networks — whose leaders include Amazon, Walmart and Target — are expected to make up one-fifth of worldwide digital ad spend in 2024, raking in $140 billion, up from $115 billion in 2023 |
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| How Should Retailers Reduce Tech Sprawl? [RetailWire] According to a recent survey from work management platform Quickbase, half of IT professionals feel overwhelmed by the thought of trying to reduce “technology sprawl” — defined as “disconnected systems, data, and point solutions” — due to challenges from employees, disconnected data and systems, and the costs of completing the task of software consolidation. |
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| Three predictions on how the retail store will evolve in 2025 [Chain Store Age] Consumers are returning to stores — 2024 was a good year for foot traffic (even if consumers didn’t seem to be spending as much money there specifically). Heading into 2025, there is still a lot of concerns about softness in consumer confidence and consumer spending. Against that backdrop, retailers will be conservative in their technology investment decisions — at least until the economic outlook becomes clearer one way or the other.
Malls in the US are struggling, except in Silicon Valley [NBC Bay Area] In the era of online shopping, malls all over the country are struggling, except in Silicon Valley. Malls in the region outperform malls just about anywhere else in the United States. “We are very fortunate that we have a base of income earners that is much higher than most places in the country.”
Party City to close all stores in bankruptcy [RetailDive] Party City filed for Chapter 11 bankruptcy protection in the Southern District of Texas. The party supplies specialist also announced it will close its entire footprint, which at the time of its bankruptcy filing consisted of nearly 700 stores, according to court documents. |
| Legacy mall apparel retailers are hoping for a comeback in 2025 [ModernRetail] Apparel brands that were popular two decades ago are readying for a comeback in 2025. Already, Abercrombie & Fitch — once known as a preppy mall brand — is reaping the rewards of changes it’s made over the past few years, including releasing modern styles, adding inclusive sizing and working with more influencers. Now, more brands are joining its ranks in terms of performance.
Placer.ai: Department stores, specialty retailers had strongest Super Saturday performance [Chain Store Age] Super Saturday had several winners as consumers flocked to retail for last-minute holiday shopping needs. Department stores, apparel chains, sporting goods retailers and more all saw massive jumps in traffic on Dec. 21 (the last Saturday before Christmas), compared to the year-to-date daily average.
Nordstrom to be acquired by Nordstrom family and a Mexican retail group in $6.25 billion deal [Associated Press] Century-old department store Nordstrom has agreed to be acquired and taken private by Nordstrom family members and a Mexican retail group in a $6.25 billion deal. |
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