Expect more retail vacancy in 2015 as stores are closing up shop to try and bring their P&L sheets back in line. Malls across the US are going to be hit hard with several longtime companies slimming down their brick and mortar operations. Companies like JCPenney, Abercrombie & Fitch, Radio Shack, and Wet Seal are all planning on closings this year according to the Telsey Advisory Group’s recent research report. And this is not a complete list.

Several factors come into play. First, the US has reportedly been overstored for years with more devoted retail space than other countries. As an example, a Fung Business Intelligence Centre (FBIC) report suggests that the US holds nearly 40 percent more retail space than Canada. Second, consumers are driving double-digit e-commerce growth. Shopping online has never been more popular. Consumer behavior is forcing companies to review their go-to-market strategies that include details from the number of storefronts to developing their own online tools.

All is not lost though. Guess who is poised to take up some of the retail locations? Online merchants. Yes, the very companies that are causing the retail space overhaul. The trend started in 2014 and is expected to continue. For example, Birchbox has already opened a store and eyeware company Warby Parker is staged to open multiple stores in 2015. Toms, Rent the Runway, and Bonobos are all looking for a larger mall presence this year according to a real estate report from Green Street Advisors. And the most interesting rumor on the street? E-commerce giant, Amazon, just might be doing the same!

Keeping your eyes, and your business strategy, open to an ever-changing landscape is key to continued success. And I have to say, I love the idea that new technology doesn’t necessarily mean the extinction of the old – just an evolution of it. If your company is looking to identify growth opportunities within your changing landscape, Catalyst can help. Reach out and connect – we’d love to talk!