Los Angeles – September 6, 2011 – Fifty-nine percent of U.S. retailers plan to open more stores due to the attractive rental rates available in the current market environment, according to CB Richard Ellis (CBRE)‘ second annual "Shop Talk - A Retailer’s Perspective" survey. The report also finds that 93% of the retailers surveyed are using social networks, such as Twitter and Facebook, to assist with the branding and marketing of their products, up from 70% a year ago.
"Our survey shows a significant number of retailers will be taking advantage of an opportune time for growth due to compelling rent levels—luxury goods, wholesale clubs and discounters in particular are expected to continue to expand," said Anthony Buono, Executive Managing Director of CBRE Retail Services in the Americas. "Additionally, the growing utilization of social media significantly underscores the increased desire of retailers to be as 'plugged-in" as possible to the wants, needs and desire of their target consumers."
The consensus outlook among retailers has turned more cautious with regard to the current economic environment. Only 27% of retailers in 2011 viewed the economy as improving as compared to 35% last year. However, 45% of retailers view the economy as stable compared to 35% last year, with 27% of retailers feel that the recovery has already occurred within their market segment.
Other findings in the report include:
- Ninety four percent of retailers have been able to negotiate tenant improvements in their leases, including landlord financial contributions toward building out their space, the term of the lease and the rights to terminate early.
- Some of the risks that retailers cited as possibly impacting their businesses included unemployment (80%), the state of consumer confidence (79%) and higher food and energy prices (68%).
- As of the first quarter of this year, e-commerce accounted for 4.5% of total retail sales, according to the U.S. Department of Commerce. Despite the growth in online sales, traditional shopping is still favored by consumers, according to the International Council of Shopping Centers (ICSC). Over the long term, it is expected that both online and traditional retailing will be part of retailers‘ strategies, providing complementary shopping experiences for consumers.
"Shop Talk - A Retailer’s Perspective" was created to address the current and future climate from a retailer‘s perspective and is published on an annual basis. During June and July of this year, the CBRE Retail Services team surveyed major retailers about their expansion plans, the lessons learned from the recent recession, what concerns they still have and what they foresee for the future. Retailers represented in the report cover the full range of real estate type including: urban, lifestyle center, regional/power centers, strip/in-line and neighborhood/community. Additionally, all major retailer categories are included. The list includes but is not limited to apparel, banks, books and music, general merchandise, grocery restaurant, sporting goods and personal services. The report was compiled in conjunction with the CBRE Retail Services team and CBRE Research.
Note to Editors:
To speak with Mr. Buono or another CBRE retail expert, please contact Robert McGrath (212.984.8267 or Robert.McGrath@cbre.com
About CB Richard Ellis
CB Richard Ellis Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world‘s largest commercial real estate services firm (in terms of 2010 revenue). The Company has approximately 31,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com