Sears closures present an opportunity for local entrepreneurs in 2018

VANCOUVER (NEWS 1130) – As Sears Canada shuts its remaining stores for good today, a retail expert is predicting we’ll see more pop-up stores and a decline in multi-brand retailers in 2018, as well as an opportunity for smaller entrepreneurs.

Sears Canada is closing the doors after months of liquidation sales and staff lay-offs.

“It’s sad from an overall perspective, particularly about people losing their jobs,” Raymond Shoolman with DIG360 says.

“From a purely retail point of view, Walmart will benefit from it, the Bay will benefit from it, independent stores will benefit from it. I think some of the small to medium retailers will benefit, depending on what people are looking for.”

David Ian Gray, also with DIG360, says a recent report by that firm and Leger showed most of Sears’ customer base has been aged over 45, and in smaller towns in the Prairies and Atlantic Canada.

“In some of those markets, with the decline of Sears and with it going, there could be a void for some time, and maybe an opportunity for some local small entrepreneurs to fill the void.”

He says there’s already a decline in retailers selling other people’s products, for example retailers selling multiple brands of jeans, and he expects that trend to continue in 2018.

“So the retailers that are doing better today are the ones that actually own their own products. Lululemon, Aritzia in our market,” he says. “And you’re seeing people like Herschel, with their bags, start to open retail stores, so they want to have that direct selling connection to the customer.”

“There’s a lot of growth in that kind of retail, and there’ll be shrinkage in the kind of retail that’s just ‘hey, we’re a collection of other people’s brands’,” he says.

David Ian Gray is also expecting more pop-up stores in cities such as Vancouver, where real estate is expensive, this year.

“Besides the cost of the lease, there’s also this notion that retail’s changing so much right now that most retailers don’t want to get locked into ten years when they’re not sure how their model’s going to evolve in that time.”

“So I think we’re going to see pressure on shorter leases, different kinds of flexible formats, stores in other people’s stores.”

He also expects to see more real estate creativity around warehouses and distribution centres, as online shopping and shipping grows.