PARAMUS, NJ – There’s nothing more constant than change and when it comes to retail real estate, change is almost guaranteed.
“Change occurs because our needs are always changing, and no better example than the result of the recent recession,” stated Chuck Lanyard, President of the Goldstein Group. “In order to survive and thrive, retailers have learned how important it is to adjust by downsizing to stay in the retail marketplace.”
The office supply stores (Staples, Office Depot and Office Max) have begun to reduce their footprints from 20,000 square feet and larger to smaller sized stores. Fedex, which took over Kinkos years ago, is now downsizing to stores of approximately 4,000 square feet, thus cutting their stores in half. Very often it’s changes in technology that facilitate the downsizing. Also, internet sales help keep overall sales volumes steady, as retailers find different ways to improve their bottom line. A good example is Staples, which has even started opening stores under 6,000 square feet in Hoboken, Westfield and Summit.
Also, some retailers see the opportunity to expand. Casual Male, a men’s clothing retailer for large sizes, has even changed its name to DXL (Destination XL). The company, which is represented by The Goldstein Group, recently expanded its Union, NJ store to 9,000 square feet. DXL is now looking at relocating its 3,500 square foot stores to 7,000 – 11,000 square foot locations inmarkets.
Lowes recently opened a smaller big box location called Lowes Express, consisting of 49,000 square feet on Route 35 in Wall, New Jersey, to test a smaller concept compared to their standard store size of over 100,000 square feet. Red Robin restaurants is considering a smaller footprint of its franchise to compete against other fast casual burger competitors.
Starbucks, has purchased other food and beverage companies in order to expand its brand. They’re also seeking more drive thru locations. Panera Bread is also seeking drive thru locations.
Companies such as Sleep Number Mattress Shops and Zale’s Jewelers that operate out of mall locations have now looked at non mall locations. Sleep Number recently opened in North Plainfield, East Hanover and Woodbridge.
Other notable changes we see in the market include KFC testing out a new fast casual restaurant. High end steak restaurants such as Morton’s Steakhouse has a new smaller concept called Morton’s Grill, while the Del Frisco’s Steak restaurant chain is rolling out a smaller concept called Del Frisco’s Grille. DSW is looking to test out opening their discount shoe outlets in 10,000 square feet. Chiropractic centers, like The Joint, are seeking sites in NJ shopping centers.
About The Goldstein Group
The Goldstein Group, New Jersey’s leading full-service commercial real estatefirm, specializes in owner representation, retailer representation, investment sales and management services. The firm, founded in 1986, represents over 12,000,000 square feet of retail space and more than 50 national and regional retailers. The Company is the New Jersey member of the Retail Brokers Network. As an RBN affiliate, The Goldstein Group provides clients assistance throughout the United States with qualified retail specialists in over 75 offices in the United States and Canada.
For more information on the Retail Brokers Network, visit www.retailbrokersnetwork.com.
For more information, contact Chuck Lanyard at (201) 703-9700, extension 115 or visit the Company’s website at www.thegoldsteingroup.com.