Trying to open your own store may be risky business, and stocks haven’t been a fun subject for investors for a while. Yet, for the founding families of large and hot retailers and the real estate investors who lease them their storefronts, the outlook seems bright.
Here are five great signs that retail and investors in retail property should be happy and bullish on the year ahead.
The new cannabis retail business could have easily gone all online, been offered exclusively through existing pharmacies, or simply continued to be controlled by the government. Instead, we have a new explosive brick and mortar industry with immense demands for retail, industrial, and mixed-use space to name a few. This new business could be one of the most impactful in retail for years to come.
Even if you are not a fan of marijuana or its legalization, it means bringing new life and traffic local shopping plazas across Canada. More incoming tourist dollars. Plus, who knows what new similar product will be unveiled in a similar way in the next few years as fears about legalizing drugs calms down.
Sears’ chairman Eddie Lampert has won a $5.2B bid to keep the retail giant alive. This could create a lot of opportunity in retail real estate. As well as keep many workers employed. If Sears can be saved, then so can many other big retail tenants.
You’d think if any retailer would struggle, it would be the biggest giants who have the most square footage of space. Yet, the Walton family behind Walmart has seen its fortune boom to $1752B dollars after a hot holiday season. The Bloomberg Billionaires’ Index shows the family’s fortune has risen $14B since the beginning of 2019.
Despite the pushback against the Amazon HQ2 deal and a recording breaking multi-billion dollar divorce, Jeff Bezos has pledged $2B towards providing free schooling and fighting homelessness. As Amazon’s physical retail footprint grows it will be great to see its founder and the investors benefiting from its growth give back even more. Just as ReDev Properties founder Richard Crenian has become an ambassador for fighting dementia.
Mastercard has reportedly spent years crafting the perfect jingle to be triggered when consumers to pay for things. The final product, in collaboration with Linkin Park, may usher in a new era of psychological tools for promoting and emotionally rewarding shoppers for their purchases. These are huge investments being made in retail.
Contact ReDev Properties Ltd. to gain further insight into retail opportunities in Alberta, Ontario and Saskatchewan.