🛍️ Retail Occupancy Trends

February 18, 2025

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🗃️ What’s Shaping the Shelves?

The dream of "Made in America" fashion is running up against major economic and logistical challenges. While many brands promote domestic manufacturing for sustainability and ethical reasons, high costs and a lack of skilled labor continue to push production overseas. Retailers looking to capitalize on the appeal of locally made goods must navigate these hurdles while balancing consumer expectations and pricing strategies. Read more.

🧙 Retail Masterclass - Retail Occupancy Trends

Retail occupancy has been on the decline for a while now, yet many retailers continue to open stores. What’s driving this seemingly contradictory trend? And what do health, wellness, and pet-related retail have to do with it? Listen to this episode of the 60-second Retail podcast as Ross Forman, Managing Director of Strategy & Innovation in the Management Consulting practice at BDO USA, unpacks this curious case of occupancy in the retail investments market.

💡 An Everyday Market Hack

Retailers can improve in-store engagement by incorporating interactive technology. Features such as smart mirrors, QR-code-enabled product details, and augmented reality displays enhance the shopping experience and encourage customers to spend more time exploring products.

🧐 Shopper Insights

This survey shows that consumer sentiment has dropped to historic lows due to rising inflation, impacting purchasing behavior across industries. Higher costs for essentials like groceries and fuel are leading shoppers to cut back on discretionary spending. Retailers may need to adjust pricing strategies, emphasize value-driven marketing, and offer more flexible payment options to maintain sales momentum.

Retail Innovation

Luxury home goods retailer Trousseau is seeing a shift in revenue sources, with clothing, fragrances, and home decor now accounting for 40% of its business. This diversification reflects changing consumer preferences and highlights the potential for retailers to expand their offerings beyond their traditional product lines.

Sustainable underwear brand Step One is making its debut in John Lewis stores, marking a shift toward more eco-friendly fashion choices in mainstream retail. As consumers increasingly prioritize sustainability, major retailers are responding by incorporating environmentally conscious brands into their product mix.

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