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In a recent blog, we detailed why we are optimistic 2020 will be another strong year of growth for Kansas Asphalt. While that optimism extends across our biggest industry sectors, retail remains our biggest revenue driver and a sector we pay especially close attention to.
The news from the retail industry as a whole has been something of a mixed bag in recent years. Online shopping and other factors have taken a toll on certain types of brick-and-mortar stores, and malls and shopping centers in many markets continue to face significant challenges. Despite those trends, Kansas Asphalt has continued to grow revenue in the retail sector.
A recent report from the global real estate services company CBRE provides additional reason for optimism. One of many highlights in the report is a prediction that retail store openings will outstrip closings this year. According to the report:
Thousands of new stores will open nationwide in 2020, including by once online-only retailers that recognize the brand value of a physical store, and by food & beverage concepts, grocers and franchisers. Pop-ups to test brand collaborations, launch new products or test new markets will proliferate in urban markets and dominant malls (CBRE 2020 U.S. Real Estate Market Outlook report).
Health & wellness concepts are expected to continue to be one of the fastest-growing types of retail businesses. In many markets in which Kansas Asphalt works, we have seen the trend first-hand. Shopping centers that have seen some longtime traditional retailers close and leave have replaced them with various fitness centers and concepts, yoga studios and primary and/or urgent care centers, among other concepts.
“These brands are improving experience and loyalty through amenity-rich environments, customization, seamless online apps and subscription or membership-based models,” the report said.
As the retail sector will continues to evolve, we will continue to build on our customer relationships in the sector and seek new opportunities. Increasingly, our customers may provide different types of services and products than what traditional shopping center tenants have — but they will continue to need Kansas Asphalt to ensure they have the highest quality parking lots, sidewalks and stormwater solutions in the business.