Strategy: The company is creating an “incubator where emerging online brands or new retail concepts use storefronts to test the market and experiment in the brick-and-mortar realm.” Brookfield also helps new tenants with marketing to increase foot traffic, according to the WSJ.
What they mean to say: The strategy aims to help traditional pop-up stores become permanent tenants.
Application: Brookfield is testing this on four retail properties it recently acquired from New York REIT on Bleecker Street. The properties consist of seven storefronts and span 24,000 square feet.
Takeaway: Retail is not dead; rather, the traditional model must be tweaked to conform to our zeitgeist. Many retailers that began as e-commerce-only brands are acknowledging the need for physical stores (e.g. Allbirds, Casper, Everlane).