The USA has the highest average retail space in the world at 23 square feet, as opposed to five square feet per person in the UK, Germany, France and Japan.
According to PwC’s analysis, number one position does not bode well for the sector. PwC’s head of US real estate practice, Byron Carlock said, “We are clearly overretailed in America”.
With the pandemic continuing to impact retail industry, retail space providers would consider using retail spaces more efficiently. Physical stores would continue to be relevant but parts of it would be demolished and repurposed to build establishments like fitness centres and medical facilities.
Carlock said the US could cut down retail spaces to reach close to 16 square feet per person. He further added that if this reuse and replacement continues, America would have 30% more space for the “kind of development people actually need.”
[2 minute read]