INDUSTRY NEWS
NEWS, NOTES & TRENDS...
Beauty and the (Retail) Beast Why more retailers are investing in beauty departments
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on’t look now, but beauty is becoming a major item on the to-do lists of many mass retailers. For proof, check out what some major brands are doing to increase their investments in segments that include fragrance, cosmetics and nail care. For example, Target continues to become home for hundreds of Ulta Beauty in-store shops, while Kohl's recently began testing the Wellness Market concept at 50 locations. Part of the shift can be attributed to the fact that America’s department store makeup counters are losing their clout, which has provided a window of opportunity for other players to grow in the space. Why? According to retail analytics firm First Insight, 41% of people said they felt either “unsafe” or “very unsafe” testing beauty products in stores during the pandemic. Overall, sales of prestige beauty products in the US, which have primarily been sold in department stores, dropped 17% year over year to $3.7 billion during the third quarter, according to data from The NPD Group. But, as sales of items like fragrances creep up, retailers are hoping to attract a younger consumer base.
A new kind of house hunting Potential for residential developments seen in empty California shopping centers
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s the pains of COVID continue to drive the need for affordable rental units, a California housing group may have found a solution in an equation that is worth exploring: Empty shopping centers + legislation = residential developments. In a state that needs 1.3 million more affordable rental units, the California Housing Partnership believes that legislation aimed at making it easier for developers to turn empty shopping centers into residential units is encouraging. If the legislation, introduced at the end of 2020 is successful, it could help fill a need that is sorely needed. According to developers, there are three main types of projects ripe for reuse, including commercial strips in more urban areas, often along existing transit lines; former big box retailers in more suburban areas; and vacant land in the exurban landscape that has been reserved for future development.
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COMMERCIAL CONSTRUCTION & RENOVATION — ISSUE 2, 2021