There is no doubt that the retail industry is in a state of flux, with new closures for major department stores announced every day. However, mall managers are adapting to the changing landscape of retail, and are continuing to provide urban metro markets with viable alternatives for shopping.

One of the economically healthiest kinds of metro shopping today is the strip mall, which is the lesser-known cousin to the luxury shopping mall.

The health of strip malls

While some major malls are beginning to look like ghost towns, commerce at strip malls is holding up extremely well, and is in fact second only to high street opportunities in terms of overall performance. Part of this is due to the fact that the tenant mix at strip centers contains a good blend of service-oriented vendors and retailers which can successfully resist inroads from the Internet.

Strip mall owners and managers often have the luxury of being anchored by popular grocery stores, and further supplement their tenant mix by providing fast service restaurants, smartphone shops, entertainment possibilities, and small discount retailers. In addition, a great many healthcare facilities are opening up in strip malls, as the decentralization of healthcare moves into full swing.

E-commerce resistance

One of the biggest reasons for the continued success of strip malls and the retailers within, is the fact that they are highly resistant to the inroads made by e-commerce, which is in direct contrast to large department stores which have been decimated by e-commerce. There is virtually no new strip mall construction going on in the country, which means that existing strip malls have become even more popular. Populations have grown up around these malls, and as they continue to offer valuable services such as fitness centers, beauty shops, barber shops, and nail salons, they are providing services which cannot be obtained online, and are thus insulated against e-commerce.

Outlook for the future

It is expected that demand for strip mall space will continue to rise as the retail industry proceeds through its transformation. The convenience of strip malls is expected to fuel this continued demand, as drive-through operations become more prevalent, and municipalities scramble to support these initiatives. While the retail industry as a whole continues to evolve, strip malls appear to be one of the biggest beneficiaries of the change in consumer purchasing habits.

Strip mall investment with Acquisition Capital Solution

A strip mall investment might make great sense for you as an investor, and if you need funding for such a project, we may be able to provide financial assistance.

Contact us at Acquisition Capital Solution so we can explore some possibilities for funding your next project.