What: International Research Firm, Colliers International, recently released a report detailing the growth of retail outlets and budget style stores like H&M. Retailers such as Bloomingdales, Nordstrom and Neiman Marcus are joining the “Cheap is Chic” trend with an increase of outlet stores opening across the US. H&M is also expanding with 240 new stores worldwide this year and Top Shop will be bringing its unique style to hipsters nationwide over the next few years.
High-end Retail Trend Highlights:
Bloomingdale’s has four outlet stores planned for 2010 and is expected to boost outlet store openings further in 2011. It has open ings planned for Bergen Town Center (Paramus, NJ), Dolphin Mall (Miami), Potomac Mills (Washington DC area) and Sawgrass Mills (Sunrise, FL)
Nordstrom plans on adding at least 16 new Nordstrom Rack stores in 2010, which boast price points that are about 50 percent lower than those offered in Nordstrom’s traditional department stores. Nordstrom added 12 Rack stores in 2009 (including two in Manhattan) and is actively seeking both urban and suburban sites and has signed a number of deals in big-box space vacated over the past 18 months. For example, Nordstrom Rack recently inked a deal for 36,000 square feet of former Circuit City space on Chicago’s Magnificent Mile.
Neiman Marcus is following suit and is expected to put most of its expansion emphasis behind its outlet concept, Last Call, over the next couple of years, and opened three new Last Call stores in 2009.
Saks opened a number of Saks Fifth Avenue outlet stores over the last half of 2009, including new stores in the Cincinnati, Los Angeles, Raleigh/Durham, Reno, San Antonio and San Francisco Bay markets. One new Off 5th store is planned in the Dallas market and as many as four more stores will likely be added over the course of 2010. Saks plans on rolling out a minimum of five Off 5th stores annually over the next few years.
Lord & Taylor is also getting into the mix, with a 15,000 square foot outlet store in the Jersey Gardens Outlet Mall in Elizabeth, New Jersey.
Coach plans as many as 20 stores throughout North America in 2010
Liz Claiborne will be rolling out a new concept, LCNY, over the next 18 months
Henri Bendel plans to expand in the U.S. in 2010
Lululemon Athletica plans on accelerating growth in 2010 and plans on as many as 15 new stores in 2010 and 25 stores annually for at least the next few years
True Religion will reportedly add as many as 25 new stores in the coming year
Topshop has one confirmed new store in New York slated for 2010 opening, and Hipsters across the nation will be pleased to know that as many as 15 stores throughout the U.S. are planned over the next four years
Zara is planning for as many as 10 new U.S. stores in 2010. California, Florida, Georgia, Illinois, Nevada, New Jersey, New York and Texas are the focal points for growth in the coming year. Worldwide expansion plans for Zara call for 450 new stores over the next two years
Urban Outfitters plans on 50 new stores in 2010 and opened about 35 new stores in 2009
H&M is aggressively expanding and pursuing urban streetfront retail and mall sites. It is currently on track to add about 240 new stores worldwide this year
And to make sure a cool snack is handy for shoppers working up an appetite, Pinkberry is going national with a recent debut in Dallas, and by actively looking for sites in Atlanta, Austin, Boston, Colorado, Miami, New Orleans, Orlando, Philadelphia and Washington DC among other markets.
General Retail Trends
2010 is the “year of the pop up store” with retailers such as Walmart and Target joining the fray in urban settings such as Chicago
Target is expected to replace the century-old Carson Pirie Scott store in this Louis Sullivan-designed building in Chicago
The innovative use of retail spaces will continue to rise, for example:
In the upscale Sacramento suburb of Rocklin, California, an 80,000 square foot vacant Mervyn’s store is currently being converted to
Vacated boxes in Rohnert Park, California (former Linens N’ Things), Austin, Minnesota (former K-Mart) and Round Rock, Texas (former Walmart) were all recently converted to indoor go-kart racing facilities
Other examples include former K-Marts converted into libraries, a CompUSA converted into temporary museum space and boxes have been used for indoor swap meets, churches or Department of Motor Vehicles offices
Look for dollar store chains to emerge as the strongest growth sector in retail (at least in terms of unit counts) over the coming year
Between different concepts, as many as 1,500 new dollar stores may be opening in the United States over the next year
Dollar General plans to open 600 stores in 2010, and to remodel or relocate up to 500
Family Dollar opened 43 stores in just the final quarter of last year and roughly 130 new units over the course of 2009
Family Dollar will be boosting growth levels in 2010, perhaps by as many as 200 new stores in the months to come
Dollar Tree Stores currently operate over 3,700 stores nationally under the Dollar Tree, Only One Dollar, Deal$ and Dollar Bill’s banners and plans to add as many as 220 new stores in 2010
Colliers International is a leading global real estate services firm that operates in 61 countries.
The full report can be found here: and the official press release is in the email below. For questions or to speak with report author Garrick Brown, please do not hesitate to contact me.