According to a report published by Jones Lang LaSalle Incorporated (JLL), a leading real estate investment trust (REIT) in the U.S., the retail market is likely to recover in 2010, with discount retailers benefiting the most from the recovery.
The continued softness in the economy has led to a reduction in disposable income and a cut in consumer discretionary spending. Consequently, consumers are more attracted to national and local department stores and discount stores that offer products at fire-sale prices.
The JLL report added that B- and C-level retail centers, which offer merchandise at discounted prices, are better positioned to lead the market recovery through increased consumer traffic in their stores. Furthermore, these retailers are also quite flexible and modify their business strategies to realign the inventory to sales trends.
In order to support its claim, the report has cited the meteoric rise of Costco Wholesale Corporation (COST), and has pointed to the shift in balance from more premium-based shopping trends to value-for-money.
Jones Lang is a leading full-service real estate firm that provides corporate, financial and investment management services. The company caters to corporations and other real estate owners, users and investors worldwide. A broad real estate product and service range, and extensive knowledge of domestic and international real estate markets enable it to operate as a single-source provider of real estate solutions.
Read the full analyst report on “JLL”
Read the full analyst report on “COST”
Zacks Investment Research
