Although the latest UBS report warns that 75,000 more stores will be closing their doors by 2026, FTI Consulting Senior Managing Director Cynthia Nelson thinks that we’re not witnessing the death of retail, but the industry’s rebirth. As a member of the company’s corporate finance and restructuring segment, Nelson agrees that retail hasn’t been through something similar before.
Consumers have changed the way they do shopping and now they want more experiences. Landlords need to cater to this need and quickly adapt their business models. Savvy owners have already recognized this trend and are redesigning their spaces and adding more entertainment options.
While it is true that some struggling retailers have liquidated their businesses and even healthy retailers are pruning less productive real estate, landlords must consider all their options for maximizing the value of their retail assets. In a podcast with Commercial Property Executive Senior Associate Editor Laura Calugar, Nelson explores the alternatives which landlords face with increasing frequency.