Massive Changes in Retail - Summer 2019

Though it reportedly captures less than 15 percent of overall shopping and consumer spending, online purchasing is taking a significant toll on brick-and-mortar retail purchasing. In Sarasota, the rise of e-commerce is one factor contributing to the demise of the two Unibail-Rodamco-Westfield USA malls (Southgate and Sarasota Square) that once were formidable retail hubs sought after by merchants and heavily patronized by shoppers. Both properties were wounded significantly by the development of the Mall at University Town Center and the former Westfield Corp.’s flawed decision to convert Southgate to a “lifestyle” center dominated by restaurants (two of which have already closed) rather than fight to keep A-list retailers in a location that continues to have broad appeal. Time has been good to Southgate in regards to its demographics; it baffles us at Harshman & Co. that the Australian mall owner has not fought harder or been more creative to keep high-end retailers or replace them with tenants that would desire such a premier location.