As COVID-19 cases have increased nationwide, we’ve been paying attention to the consumer trends and behaviors shaping our economy and retail industry. For some of our most frequently visited retail stores, there’s no doubt that the spread of COVID-19 has contributed to an early bounce, then decrease in foot traffic, and an increase in online retail sales. The question remains, “How permanent will these trends be?”
As self-quarantining and stay-at-home orders remain in place across the country, we expect to see these trends continuing with more necessity for online shopping and demand for curbside pickup growing.
Kroger’s foot traffic was up 35% to 50% year-over-year in the second week of March, while businesses like Walgreens and 7-Eleven saw significant foot traffic declines, according to Placer.ai. However, we don’t believe this will be a permanent trend across the country.
In the coming months, investment opportunities will require a new perspective. Finding the right investment for your portfolio will require an experienced approach. As we look at the last three weeks of data, we are starting to see positive trend lines for many retailers. However, these trends will continue to change as states start lifting stay at home orders.
As experts on net lease investments, we remain devoted to finding the best solution for your business. Whether you’re trying to plan an exit strategy for your retail assets, or are looking for buy-side representation, our team of net lease experts can help you implement a strategy toward achieving your goals.