Grocery-Anchored Retail Spaces Prove They’re Still Super Markets
During the early days of the pandemic, experts anticipated that the slow death of brick-and-mortar retail would only speed up during lockdown. In some cases, they were correct, but other retail models proved resilient in unexpected ways—one of these being grocery-anchored retail. Even during a global pandemic, people have to eat. With many restaurants closed and prices spiking, consumers turned to cooking more at home, putting grocery stores center stage. As the years have progressed and other issues like surging inflation and commercial rent have put increasing pressure on businesses, real estate investors are looking for sure bets to weather the times. Grocery-anchored retail seems to fit the bill, as JLL reports $13.3 billion in sales in this sector, with grocery shopping center transactions increasing 56 percent in the first quarter of 2022. What investors recognize in grocery-anchored strip malls is the continuing power of foot traffic. Strong grocery chains like Kroger or Albertsons will continue to reliably draw customers to shop, and these customers often visit consistently and frequently. Other businesses that position themselves to capitalize on people visiting grocery stores, sometimes several times a week, can stand to benefit more from that enhanced visibility than standalone locations. Grocery