| A Weekly PropTech Newsletter bringing you industry updates from across the real estate spectrum |
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| We highlighted back in February that Walmart had purchased a mall in Pennsylvania, though at the time that was all we really knew. This week, more details on the potential plans Walmart has for the property have emerged and it seems they plan to demolish portions, reconfigure the footprint, and re-introduce a mixed-use, open-air format with a core store, membership club, dining, entertainment, and other experiential amenities. This development has already unnerved existing tenants concerned about uncertainty, declining foot traffic, and forced relocation. For mall property owners, the story underscores both the risks and opportunities: anchor tenants might increasingly wield redevelopment control; traditional leasing models may give way to hybrid ownership or joint-venture models; and the survival of malls may depend on rethinking them as lifestyle hubs rather than pure retail destinations. How are you feeling about these new tenants turned owners/redevelopers?
This week we’re attending the Middle East Council of Shopping Centres & Retailers (MECSR) Retail Congress. If you’re here too, send us a message over on LinkedIn! Also this week, AI chatter shows no sign of slowing, parking lots might need to start making space for helicopter taxis, and an online giant goes in-store. |
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| Report: Shein to enter brick-and-mortar with in-store shops [Chain Store Age] Shein is making its first permanent move into physical retail.The Asian online fast-fashion giant will pilot six shop-in-shops across France, starting at BHV Marais in Paris, followed by five more, to be opened in Galeries Lafayette stores, managed by an affiliate in Dijon, Reims, Grenoble, Angers and Limoges.
Why Walmart And Target Love ChatGPT But Amazon Is Banking On Rufus [Forbes] A quiet AI revolution has picked up speed over recent months as the flow of online consumers heading towards major retailers such as Walmart and Target has been increasingly driven by referrals from ChatGPT.
IKEA buys US logistics tech firm Locus in online growth push [Reuters] IKEA has acquired U.S. logistics technology firm Locus, a deal the Swedish furniture retailer said would make its deliveries to shoppers smoother and faster as it invests to expand online sales. |
| Michaels CEO on turning Party City and Joann closures into opportunities [RetailBrew] It’s not often that two competitors exit the market at around the same time. But that’s the situation Michaels faced earlier this year when both Party City and Joann Fabrics declared bankruptcy, leaving two specialized marketplaces wide open and giving the arts and crafts chain a boost at a difficult time for specialized brick-and-mortar retailers.
ASOS Live launches as it “evolves into a video-led destination” [Fashion Network] ASOS has launched ASOS Live, an “immersive video shopping experience” that we’re told “brings inspiration, discovery, and shopping together in one seamless journey”.
AI and data power the next chapter of department store evolution [Fashion Network] As the post-pandemic “boom” fades, department stores now rely more than ever on technology to stay top of mind with international customers. |
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| Why Did Walmart Just Buy a Shopping Mall? [The New York Times] Walmart plans to turn the Monroeville Mall in Pennsylvania into a mixed-use development that will include retail, dining and entertainment space, according to a recent filing.
The Ultimate List Of 123 AI Firms Reshaping Commercial Real Estate [BisNow] Artificial Intelligence is commercial real estate’s next operating system. See how this technology is quietly reshaping the multitrillion-dollar commercial real estate industry.
Real Estate Really Wants to Use AI, But It’s Not Fully Ready: Survey [Commercial Observer] Results from a canvass of investors indicate growing acceptance of the technology, but also fears that organizations don’t yet have the in-house expertise for it
Inside the Death Spiral of San Francisco’s Most Storied Mall [The Wall Street Journal] Artificial intelligence is powering a comeback across much of this hard-hit city. That recovery isn’t doing much to stop its biggest mall from imploding. San Francisco Centre resembles a retail ghost town: 93% of its more than 1.5 million square feet sits vacant and is now bleeding millions of dollars a year. |
| How to run A stores in a B mall [RetailDive] Investors, developers and retailers are taking a fresh look at B malls, especially those in areas with little competition. One thing that hasn’t changed much about these lower-traffic shopping centers — along with their flooring, layout and signage — is the challenge of running a store in them.
L.A. Races to Build the First Network of Flying Taxi Vertiports [Propmodo] Electric air taxi operators are moving quickly to stake out real estate in Los Angeles ahead of federal approval for eVTOL (electric vertical takeoff and landing) flights, which could begin as soon as next year. VertiPorts by Atlantic, a subsidiary of Atlantic Aviation, is working with Cushman & Wakefield to identify potential sites for “vertiports” that might occupy rooftops, parking structures, or open land near airports and universities.
Nordstrom returns to San Francisco this week [RetailDive] Nordstrom on Thursday will open its seventh Local store. The merchandise-free location on Fillmore Street in San Francisco’s Pacific Heights neighborhood will be the first Local in Northern California and the fourth in the state. |
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