Amazon’s 2017 purchase of Whole Foods represents a larger trend in the grocery business: approximately 90 percent of all grocery sales continue to take place in brick-and-mortar stores.
While there was an increase in boutique grocery store openings in 2017, the larger, traditional chains opened fewer stores last year. Instead, many, including Publix, invested in online-ordering and grocery-delivery services to improve the in-store shopping experience and get ahead of consumers’ evolving demands. At the same time, Amazon and other ecommerce retailers recognized how commercial real estate could enhance their brands, and subsequently set to out to expand their physical footprint of brick-and-mortar stores.
As grocery sales continue to climb, physical stores in prime locations will continue to draw foot traffic and provide commercial real estate investors with an appreciating asset yielding positive long-term returns.
With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email email@example.com.