All across the US, high-end shopping districts are evaporating.
According to CNBC, premium real estate locations that had been previously occupied by luxury retailers like Saks Fifth Avenue and Neiman Marcus — both of which have seen sales plummet during COVID-19 — are being overtaken by value retail brands like Five Below.
While there’s still discussion about the future of brick-and-mortar retail as a whole and whether it will be displaced by e-commerce and online retail, an increase of new stores for some value retailers suggests that perhaps the model of brick-and-mortar retail will remain, though mostly favoring discount and value brands going forward.
Worth noting: e-commerce revenue is still up 61% YoY (though down significantly compared to the soaring peak it reached in May).
For luxury brands to survive, they may want to consider an e-commerce or online-only future.