Dear Friends
With the new year celebrations behind us, the reality of business is back upon us, as many of us return to work. 2020 was filled with challenges through all the different lock-down levels and restrictions on the sale of selected merchandise. Most crazy was the restriction of kids clothing in the beginning of winter last year. If you a parent with small kids you would remember as that is when you need that new jacket or pants. Selected retailers have posted their numbers and some will by March.
As it stands 2020 was the worst year in 15 years for many business units, with Black Friday, Cyber Monday and actual Xmas as none events compared to previous years trade and trends. Even my business was level pegged across the last 4 month of 2020 with no spike in sales for the festive season. The businesses who did grow were online businesses and the IT environments with coders working 24/7 keeping up with online demands.
January as always will be slow, parents focus their spending on back to school. ‘Will there be back to actual school?’ I have noticed expansion of PNA stationary shops in my area as restaurants and other retailers relinquish trading space. Possibly a good strategy as work and school from home will become new normal. Many companies I know of have now published work from home policies. What does this mean to landlords and brick & mortar stores?
Landlords across the world will have to employ a significantly new strategy, no matter if it is a office block or retail space. My view is that you will see mixed use spaces going forward with landlords grappling for paying tenants. We have already seen luxury car dealers pop up in retail mall’s, don’t be surprised when you see more of this as landlords struggle to fill the space. Office spaces might and will become residential space as the office block empty out. Online will grow, best you revisit your online strategy and service agreements.
Happy Trading in 2021
Regards, Charles
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