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Think Tank: Using Digital to Seed Future Physical Stores

Unquestionably e-commerce has fundamentally changed the way people shop, the way that retailers operate, and the way property owners position their shopping centers. Online market share continues to increase and most retailers have added a digital component to their business. But despite claims to the contrary, stores never really went out of style. Retail is a cyclical business and much like how fashion tastes change, we are seeing a resurgence in the recognition that brick-and-mortar stores are a critical part of the retail strategy. There is no stronger evidence of this trend than the fact that more and more digitally native retailers are opening physical locations. A recent JLL study suggests that the top e-commerce retailers will open 850 stores over the next five years. Casper, which only opened its first store earlier this year, is planning to open 200 stores across the U.S. in malls and street-front retail over the next three years. They have also entered into deals with Target Corp. and Nordstrom Inc. to introduce their brand to a larger audience through physical stores. Lingerie retailer Adore Me is planning 300 stores over the next five years in an attempt to expand its market share beyond its digital

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