National CRE News In Your Inbox.

Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.

Sub Markets

Property Sectors

Topics

MarcusMillichap-36-banner
National  + Retail  | 

CONNECT RETAIL: Are Sporting-Goods Retailers the Next Casualty?

Connect Retail is our weekly column on the sector, authored by veteran CRE writer Ian Ritter.

It’s a little upsetting, that Sport Chalet is closing all of its stores after filing for bankruptcy. The sporting-goods retailer, mainly located on the West Coast, was not a huge chain, but it took up a significant amount of commercial real estate.

The stores, numbering less than 50 in all, averaged more than 30,000 square feet, which is a big blow to retail real estate landlords that had the chain as an anchor tenant.

What’s more disturbing is that it follows the bankruptcy of Sports Authority, which involved the shutdown of more than 100 locations.

Meanwhile, Dick’s Sporting Goods, the undisputed leader of specialty sporting-goods stores, is planning to open 36 locations this year, though its sales have waned of late. That is some good news.

But we are entering a world where specialty big-box retailers are becoming a thing of the past. We have one dominant national specialty electronics chain, Best Buy. In the office-products space, it looks like Staples will be the most dominant player.

In a world where mass-merchandise retailers like Walmart and Target sell basically everything, and with Amazon doing the same thing online, it’s very tough to compete.

Should we keep our fingers crossed that this will be the last major chain closing its doors in 2016, or will we inevitably see more to come as the year unfolds?

Connect

Inside The Story

About Mark El-Rayes

Mark El-Rayes is an award winning designer and photographer from Beirut, Lebanon. El-Rayes has over 15 years in the design industry, 5 years of which he served as a Mass Communication Specialist in the United States Navy at Naval Air Station North Island, Navy Public Affairs Support Element - West (NPASE). El-Rayes is a full-stack developer, seo specialist, photographer, and artist.

Money360-14-cube
Wonderful-04-cube