Retailers Ramp Up Industrial Presence to Service Their Stores, Customers, Say InterFace Panelists

ATLANTA — While the development pipeline for industrial real estate is at peak capacity, retail’s new store inventory is taking a back seat. Paul Xhajanka, division real estate manager of Kroger, said that his company is breaking from the past when it would open hundreds of stores a year.

“If you look at our store count for the next three to five years, we’re only going to open 20 to 25 stores across our various platforms,” said Xhajanka, referring to Kroger’s portfolio of grocery brands, which include Mariano’s, Harris Teeter and Ralphs. “Target is opening 10 to 20 smaller stores a year, and even Walmart is down to 10 stores a year. All of us are shrinking our inventory of new stores down. Retailers are building more distribution centers, not stores.”...

   ...more

RSK: Instead of more retail locations retailers are opening up more distribution centers. As I said retail will morph into something and this is all part of it.

Ken Notes: Remember the milk man?? It amazes me that the New Retail is really a reboot of the old retail...