Shopping Centers Today

DEC 2018

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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48 S C T / D E C E M B E R 2 0 1 8 hen Internet- based eyewear retailer Warby Parker opened its first physical store, in New York City's SoHo district, in 2013, many in retail real estate saw a trend in the making. Five years later that initial optimism appears to have been well placed: Around the globe, observers say, so-called clicks-to-bricks retailers are ramping up their store rollouts, especially at marquis proper- ties in major markets. After surveying the histories and expansion plans of about 100 e-com- merce companies, researchers at JLL have concluded that these businesses intend to open at least 850 U.S. stores over the next five years. JLL released those findings in an October report titled How E-Commerce Brands Get Physical. Though the report shows that formerly online-only retailers aim to ramp up their physical footprints in coming years, its general take on the future is, if anything, conservative, says James Cook, JLL's director of retail research for the Americas. "For this study, we did a methodical count of every pure-play online retailer's announcement of their intentions about the number of stores they want to open," Cook said. "But it's an actual count, as opposed to a guess or forecast. Many online retailers don't announce their intentions in advance. My expec- tations are that [clicks-to-bricks retail- ers] will open a lot more than 850 [U.S. stores] over the next five years." According to the report, 2017 was a banner year for clicks-to-bricks retail- ers, with more store openings than ever by the likes of Allbirds, Away, Everlane and MM.LaFleur. Wool sneaker com- pany Allbirds, which already operates stores in New York City, San Francisco and Toronto, will target four cities over the next year for additional physical stores. Mattress retailer Casper says it intends to open 200 stores within three years, and women's intimates vendor Adore Me has plans to roll out about 300 within five years. Consultant Craig Johnson, founder of Madison, Conn.–based Customer Growth Partners, says store open- ings among such brands as Athleta, Bonobos, Casper, Fabletics, Peloton, Untuckit and Warby Parker represent more than just a novelty in retail leas trend and is accelerating," Johnson said. "For many of these players, it was not a question of whether they would move to the bricks side, but of when." The process typically begins with a pop-up shop in a major city. Of the 100 digital retailers JLL studied, about 60 percent had opened a pop-up in New York City (most frequently in SoHo); 16 percent had opened one in The Duro-Last ® ,w}-ÞÃÌi«ÀÌiVÌÃÞÕÀLÕÃiÃÃÀiÜ>ÞÃÌ>i°-ÕÀi]ÌiÀi½Ã ÌiÃÕ«iÀÀ«iÀvÀ>Vi>}>ÃÌÌiiiiÌð ÕÌÌiVÕÃÌv>LÀV>Ì«ÀViÃÃi>Ã> ÕÀ>ÃÌ,w}-ÞÃÌi}iÃv>ÃÌiÀÜÌiÃÃÜ>ÃÌi°Ƃ`ÃÌ>>ÌõÕiÌ>`Ã>vi] i>Ì}`ÃÀÕ«ÌÃÌÞÕÀLÕÃiÃðƂvÜV«ÀÌiVÌÞÕÀLÌÌi°Ì½Ãiv >ÞÀi>ÃÃÜi½ÀiÜ>ÃÌiº7À`½Ã iÃÌ,v ® »°Ü>LÕÌÜi`ÃVÕÃÃÌiÜÌ ÞÕ¶ Keeps the weather out. And the shoppers in. Learn how Duro-Last can help you protect your investment: (888) 359-7365 duro-last.com/downtime Duro-Last and the "World's Best Roof" are registered trademarks owned by Duro-Last, Inc. ORIG: 5/14/18 - DL040005 W

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