Excerpted from Chain Store Age
Today’s retailers have the ability to appreciate some of the smaller things in life. According to Mark Dufton, CEO of DJM Real Estate, a division of Gordon Brothers Group, this is especially true when it comes to store space.
“Retailers are finding the smallest possible footprint they can operate in,” said Dufton. “They want a smaller, better mousetrap. Funding is the biggest issue. Retailers are becoming more selective when choosing real estate because they cannot afford to make a mistake in site selection.”
Another trend Dufton is observing directly relates to the impact of technology on how consumers shop.
“Retailers are changing the design of stores to align their brick-and-mortar strategy with their e-commerce strategy,” said Dufton. “They are incorporating how they deliver products ordered online into store design.”
In addition, Dufton said pilots of physical stores by pure-play e-commerce retailers like Amazon.com and Google could lead to significant changes in retail.
In serving customers, DJM Real Estate specializes in occupancy savings for retailers. This includes such services as lease restructurings, renegotiations and renewals designed to drive down occupancy costs, as well as pruning the least productive portion of a retailer’s portfolio and auditing triple net charges.
“A store that is not generating significant revenue may have an intrinsic value where it makes more sense to sell it,” commented Dufton.