Challenges Impacting The Retail Industry

Suzan Zalter is a seasoned deal maker in retail real estate and business development with over 25 years in the North American shopping center industry. She has worked with one of the largest retail tenant representation firms in Canada and have established a reputable network within both the landlord and retail communities with a successful track record of leading the growth of many global retailers. Her expertise includes managing retail portfolios for over 30 international premium retail brands in the fashion, food, and service industries.

WHAT ARE SOME OF THE MAJOR PAIN POINTS OR CHALLENGES THAT THE RETAIL INDUSTRY IS CURRENTLY FACING IN TERMS OF EXPANSION?

The retail industry is facing several challenges when it comes to expanding their presence. One major pain point is the issue of low foot traffic in malls, particularly in B and C grade malls. For retailers who rely on impulse purchases, having sufficient traffic is crucial. Being located in the right spot within the mall, with good visibility and neighboring complementary retailers, also poses a challenge. Determining the optimal number of stores in the market without cannibalizing sales or creating overlap is another difficulty. Understanding the target customer base and their preferences is essential, as performance can vary even between different mall grades. Retailers are increasingly using data and GPS tracking to identify their customers’ shopping patterns and make informed decisions. It’s important for retailers to focus on their specific customer base and tailor their offerings accordingly, rather than attempting to cater to everyone, as this can lead to inconsistency and fluctuations in sales across locations.

WHAT ARE THE LATEST TRENDS, TECHNOLOGIES, OR STRATEGIES THAT HAVE COME UP TO TACKLE THE RETAIL INDUSTRY’S CHALLENGES RELATED TO INCREASING FOOT TRAFFIC, OPTIMIZING STORE LOCATIONS, IMPROVING CUSTOMER FOCUS, AND ENSURING CONSISTENT SALES?

New retail technologies have brought significant benefits, like heat mapping, which helps understand foot traffic in shopping centers, leading to better store placements and layouts. Data analytics and GPS tracking allow retailers to monitor and understand customer behavior, preferences, and shopping habits, helping them customize products and promotions for better customer satisfaction.

In terms of trends, the retail sector has seen strong performance in segments like athletic apparel, as people prioritize their health and fitness. Entertainment options outside homes have also become popular. Healthy food alternatives are in demand, replacing conventional unhealthy choices.

Fashion remains a vital part of the retail industry and has experienced a resurgence after the COVID-19 pandemic, driven by social gatherings and events, leading to increased demand for clothing and accessories.

WHAT ARE SOME OF YOUR RECENT PROJECT INITIATIVES?

I have recently completed over a hundred deals within a year and successfully expanded into a challenging market. It was a market that was difficult to penetrate, but we achieved significant success there. I consider myself a deal-making enthusiast and often refer to myself as a “deal maker junkie.” I thoroughly enjoy negotiating deals, putting together agreements, and engaging in what I call “spreadsheet deals.” Deal-making is a passion of mine, and I find great satisfaction in the entire process.

HOW DO YOU ENVISION THE FUTURE OF THE SPACE AND WHAT WILL BE YOUR ADVISE FOR BUDDING PROFESSIONAL IN THE INDUSTRY?

The future of the retail sector will see various trends and changes. Big box stores, affordable product sellers, and e-commerce concepts will continue to thrive. A-grade malls will grow stronger, while B-grade malls may face challenges but remain stable. The industry, as a whole, will focus on bargain stores and lifestyle hubs. Creating small towns or cities within larger ones is becoming popular, with “live, work, play” locations in metropolitan and downtown areas. Shopping complexes, especially lifestyle centers with outdoor spaces, will increase in response to disruptions.

For success in the retail industry, budding professionals need certain traits and abilities. Financial competence is crucial for deal[1]making, along with strong negotiation skills. Being well-informed about the market and different malls is beneficial. Building connections and networking are critical for finding opportunities and achieving positive outcomes in negotiations. Establishing relationships early on is essential for contributing to the growth and vibrancy of the retail sector.