Capitalize on Stability:
Grocery-Anchored Centers vs. Traditional Retail

Amid a wave of bankruptcies for traditional retailers such as, Bed Bath and Beyond, Party City, and David’s Bridal, grocery-anchored retail has emerged as a “kind of holy grail for real estate investors.” But what differentiates this retail subsector from malls and big box retailers? And what makes grocery-anchored shopping centers so resilient?

Essential retailers, such as grocery stores, face lower competition from e-commerce and typically see strong consumption patterns, particularly during periods of economic uncertainty. This may help to explain why grocery-anchored retail is the only consumer retail subsector to experience positive growth in traffic both pre- and post-pandemic.

Source: “Navigating a Changing Mall: Analyzing Consumer Behavior.” Placer.Ai, 6 Apr. 2023, go.placer.ai/wp/navigating-a-changing-mall-analyzing-consumer-behavior.

In addition, grocery-anchored shopping centers offer consistent and stable traffic throughout the year and are less affected by seasonality and shifting consumer behaviors due to inflation.

Source: “Navigating a Changing Mall: Analyzing Consumer Behavior.” Placer.Ai, 6 Apr. 2023, go.placer.ai/wp/navigating-a-changing-mall-analyzing-consumer-behavior.

Shopping centers greatly benefit from having a grocery store anchor as it improves the health and sustainability for all center tenants. According to recent data from foot traffic analytics platform Placer.ai, grocery stores are responsible for attracting foot traffic and increasing visit frequency for neighboring tenants.

First Colony Center, is a prime example of synergistic shopping in action. Anchored by major grocery chain, Giant, and bordered by Target and Lowes, First Colony Center generates strong consistent cash flow.

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