Retail Is Doing Just Fine – Richard Crenian

As many large retailers like Target and Sears struggle in the Canadian market, many people are left wondering about the state of retail.

Are we beginning to see the death of retail? This is a concern of many Canadian consumers who enjoy heading to the mall for their routine shops, but Richard Crenian explains that retail is not dying, it’s simply changing.

Not All Change Is Bad

As mentioned, many Canadian shoppers enjoy heading to the mall or other physical stores to do their shopping; in fact, every day millions of Canadians leave their homes and go shopping. This is a big trend that doesn’t seem to be slowing down, so it’s unlikely that retail will be going anywhere.

However, if we take a look at traditional, large covered malls we can see how the industry is changing. Malls can no longer survive by just offering variety and convenience – it’s about the experience.

Richard Crenian explains that what we’re seeing is an industry going through a significant transitional phase. It’s an evolution of the relationship between buyer and seller.

Today, there is much more emphasis on brand experience. More stores are starting to establish themselves as as communities where customers can connect with a brand. This is often a seamless transition fueled by the the integrating of the digital and the real world.

Retail Revamped

Richard Crenians successful commercial real estate model is based on identifying plazas in mature neighbourhoods that require specialized expertise and in some cases significant investment, usually over a five- to 10-year period.

This is the model that has been used by Richard Crenians company ReDev Properties for more than two decades, and in many cases will probably remain the blue print for future projects. When managed properly, these properties become and appreciating asset by producing good cash flow.

However, there are still many problems that need addressing. Namely, there is a need to respond to planners and politicians who are attempting to address population growth and limited space within urban areas.

It has become essential to become more creative within city boundaries. Usually this means intensification. As Richard Crenian explains, intensification doesn’t have a specific definition, but generally it means more people living closer together and a focus on building up rather than across (i.e. apartment buildings rather than single houses).

Richard Crenian notes that a lot of potential lies in creating retail plazas in mature and desirable neighborhoods. These plazas operate as the foundation for mixed-used development, offering many benefits like minimal fossil fuel consumption, growing community identity, and creating economic opportunities.

In some ways, having the services and retail outlets closer to where people live is similar to how cities were developed at the start of Canada’s history 150 years ago. This time, using urban land more effectively can reduce automobile activity and make better use of the existing infrastructure resources.

Before anything, however, Richard Crenian notes that we first have to look to getting these areas rezoned. This means consulting with elected officials, planners, and most importantly, the people living in the community. This is a commitment that goes beyond upgrading a plaza but involves redefining a neighbourhood and understanding the long-term goals of the investment.

Financial Benefits For Investor And Communities

Intensification changes the entire dynamic of a neighborhood – and for the better.

The logistics of working with existing tenants and our neighbours will be considerable but all issues can be overcome by taking into consideration the unique features of each community and setting realistic goals.

We are taking a strategic approach convinced that, for some plazas, this is the best way forward for people, the environment and our investors.

Richard Crenian is the founder and President of ReDev Properties. Since its founding in 2001, Richard and ReDev Properties have grown the asset management company using a long-term approach to manage numerous commercial properties, primarily located in Western Canada. To learn more about Richard please visit redevgroup.ca