Large and small, retail outlets in Lincoln are growing, rearranging and trying to meet the changing needs of consumers.
Instead of being limited to one or two retail hubs around the city, there are several pockets of activity meeting the diverse shopping habits of Lincoln residents.
In 2014, vacancy rates for retail space were slightly higher than the previous year, increasing from 5.1 percent to 5.8 percent, according to Marc Snow, sales associate with NAI FMA Realty. And there was a drop in new retail construction -- about $41 million in 2014 compared to $55 million in 2013.
But there was still a lot of growth and change in Lincoln's retail sector. In that regard, trends seen here are consistent with several national trends, Snow said.
* Big box stores are downsizing because many customers do not want a super-store shopping experience. A local example was Best Buy's move from 48th and R streets to its new location in the former Hy-Vee at 70th and O streets. The new store is smaller and incorporates Best Buy's new corporate look, Snow said.
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Nationally, Wal-Mart is developing “Express†stores of 12,000 to 15,000 square feet, he said. No plans have been announced for any of those concept stores in Nebraska. Wal-Mart has seven Neighborhood Markets, each about 40,000 square feet, in the Omaha area.
* Smaller shopping areas are being refurbished. Mega malls, according to NAI FMA sales associate Sally DeLair, are losing popularity. The Shoppes at Piedmont is a local example of a neighborhood center that has re-invented its look and added new stores, while keeping successful old ones.
* Retailers want to be on the “right†corner or location and will pay more to be there. As an area begins to pick up activity, old buildings come down and new ones go up in their place or old spaces are renovated. Snow cited the area along O street from 48th Street east as one that is rapidly changing.
* Tenants want to buy or build their own property, if possible. “It’s back to location, location, location,†Snow said.
* Generation X loves to shop in thrift and upscale consignment stores.
“They are watching their budget and style-conscious,†DeLair said. National stores like Dollar Tree and Dollar General are even targeting that market, she said.
* Small retail stores, often locally owned, are regaining popularity as consumers want to “shop locally.†Lincoln’s Haymarket continues to try to add more retail to its mix, but the lack of “front door†parking and high rents makes it difficult, Snow said.