NORTH PLAINFIELD, NJ — In February 2020, Levin Management Corporation’s (LMC’s) annual Outlook Survey of retailers within its 110-property, 15.5 million s/f leased and managed portfolio drew some of the most positive sentiment in the poll’s decade-long history. Just one month later the global pandemic took hold in the United States – changing the course of the industry swiftly and profoundly.
LMC, once again, recently surveyed its tenants. The results reflect the challenges brick-and-mortar space users – particularly the hard-hit retail, restaurant and entertainment categories – have faced over the past 12 months. Yet it also reveals the resilience of a sector that is no stranger to change.
Regarding 2020 performance, it comes as no surprise that sales were down last year for a majority of LMC survey respondents. However, more than one third (34.3%) reported their annual sales met or exceeded 2019 levels. Further, more than two thirds (66.9%) of respondents expressed optimism for store performance in 2021. This compares to a trailing nine-year average of 68.1% expressing optimism for the coming year.
“We view the percentage of our tenants that held their own or even grew their sales last year – during an incredibly difficult period – as significant,” said LMC’s Matthew K. Harding, chief executive officer. “The positivity expressed for the near term is also encouraging. It mirrors the steady optimism we have seen through the history of our survey, which spans a variety of economic climates and transformational changes for retail.” This outlook is supported by forecasts from organizations like the National Retail Federation, which anticipates retail sales growth between 6.5% and 8.2% this year.
LMC survey participants were asked what top three drivers they feel will have the biggest impact on their business in 2021. Of the presented options, the most popular included COVID-19 vaccine rollouts (selected by 68.8%), the further lifting of COVID-19 related restrictions (selected by 63.9%), the economy/consumer confidence (selected by 54.9%), and shifting consumer expectations and shopping patterns (selected by 36.1%).