A changing landscape
Last year’s holiday season saw sales rise overall, but with online sales continuing to take a bigger piece of the pie, retailers are having to adapt. As a result, some companies are struggling while others thrive. New opportunities have also arisen as consumers look more and more for retail “experiences.”
Along with the rest of the country, Albuquerque continues to feel the effects of the changing retail landscape. Many national retail bankruptcies and store closures have created numerous vacancies across the city. Over the last quarter, the city saw closures at Cottonwood Mall including Macy’s, Wet Seal, The Limited, Zio’s and Lonestar. The Uptown submarket saw Marcello’s Chophouse close its doors after 10 years of business and Sears has downsized its footprint by 50 percent. In addition to Marcello’s and Lonestar, a third steak house, Texas Land and Cattle located in the North I-25 submarket, closed in the first quarter. With Gordmans and BCBG Max Azria filing for bankruptcy and Bebe adopting an all-online model, Albuquerque’s retail scene is likely to see more closures in the coming second quarter.
Key factors this quarter
- Retail bankruptcies and store closures have left particularly high vacancies in the Cottonwood submarket
- Various discount stores have found success in Albuquerque, backfilling larger spaces vacated by national tenants
- Food continues to grow in the city, attracting many new to market concepts as well as single tenant fast food
- New breweries continue to enter the market, despite concerns they may be reaching their saturation point and facing stronger competition