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Jeff Grant's Retail Blog

Why Put Rubbish in a Vacant Mall?

Written by Jeff Grant, November 14, 2008

That headline might sound ridiculous, but it makes perfect sense. At least it does in today’s crazy retail climate. Three articles I read should explain it all.

First is this Canada.com story about a Montreal guy who knew he wanted to get into retail but wasn’t sure what to sell. When a friend showed him a carrying bag made of recycled materials, he knew he had found his niche. He opened a shop that only sells “upcycled” products — stuff made from other stuff — like handbags made from old soccer balls, picture frames from bicycle chains, and clocks from old records and cameras. Sure, this kind of stuff has been around forever, but usually not all in one place. “Pure rubbish” is what the headline calls it. To me it’s proof that one man’s trash is another man’s treasure.

If this retailer were in the United States, he’d have little trouble finding a place to open shop. According to this Wall Street Journal article on Baltimoresun.com, shopping malls all over the country are looking for tenants. Rents in new lease signings are 10.4 percent lower on average than the asking price, down from the 9.3 percent discount of two years ago, says a market researcher quoted in the article. In other words, it’s a buyer’s market, an especially good time to get into retail if you can pull the money together. Cheaper rents, shorter lease terms and bigger allowances from landlords if you outfit their stores are also compelling reasons to jump in.

Opportunities for retailers are popping up even in places like Omaha, Nebraska, where a former horse racetrack is being developed into a planned urban community. This story on TMCnet.com discusses the kinds of businesses the developers are looking for: Retail stores, restaurants, entertainment and hotels will be needed to service the growing community. They probably could use an upcycling shop as well.

Keep your eyes open for opportunities like these. If you can get in on the ground floor (literally or figuratively), you’ll be in a great position when the economy finally rebounds.

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