In today’s retail world, the consumer possesses an entirely new set of expectations that reflect a rediscovered appetite for real world, unique experiences. The US retail landscape became entirely too homogenous when each community replicated the same formula for big brand retailers to dominate power centers, super-regional malls, community centers, and local small business felt the impact. Now, small businesses are making a strong pushback by giving each community its own distinctive fingerprint. The modern consumer turns to online e-commerce for familiarity and to shop at the big-name brands but seeks a new experience in the brick-and-mortar retail landscape which can be found through local small businesses. More than 32 million small businesses employ almost half of America’s workforce. Since many of these small businesses didn’t have access to the same magnitude of resources as the larger retailers, Covid had an enormous impact on them.

Real estate professionals, investors, and property owners are becoming much more deliberate in the locational strategies and developing tenant mixes which play a meaningful role in positioning their centers to support the community and local small businesses. This allows for the shopping center to become more customizable to directly respond to the nearby demographics and needs of the surrounding community. Struggling ‘traditional’ retail centers are now being converted into activity hubs for fitness, dining, outdoor leisure, etc. Additionally, the pandemic forced a migration into the suburbs where these small businesses can cater to a larger pool of customers and different consumer needs.

Culture is more important than ever, and small businesses give communities the tools and means to differentiate themselves and grow together. With many retailers evolving their technology to improve direct-to-consumer relationships, brick and mortar stores provide the ultimate opportunity for small businesses to connect with their clientele and offer a personalized experience. As a retail broker, I am finding it increasingly more common for property owners to launch targeted marketing efforts for local talent, as opposed to sticking to the chain-store formula. These small businesses will remain the heart and soul of communities and the retail sector.