A recent CoStar article after the annual ICSC Conference in Las Vegas reported the dramatic transformation that shopping centers across the US are undergoing as legacy retailers like Bed Bath & Beyond, Party City, and Forever 21 exit the scene. In their place, a more eclectic mix of tenants is emerging—ranging from wellness clinics to pet day care centers. These shifts reflect evolving consumer preferences post-pandemic, especially a heightened focus on health, convenience, and cultural diversity.
A growing number of new businesses are tapping into lifestyle-driven categories. Indoor golf simulators, IV therapy centers, doggy day cares, and children’s swim schools are occupying spaces once dominated by traditional retail. These operators seek visibility and customer proximity, finding homes next to popular chains like Whole Foods and Starbucks, thereby enhancing foot traffic and service synergies.
Pet boarding centers aren’t new – but the category has exploded, with operators are looking to lease prominent storefront space, not just standalone facilities. In the wake of the pandemic, a good portion of Americans own pets and consider them like family — and want them treated as such. Pet care has become a major retail use case. With 70% of U.S. households owning pets, the demand for upscale, convenient pet services has skyrocketed. These facilities cater to owners seeking quality care during work hours and contribute to a more community-centric retail experience.
The rise of “medtail”—a mix of medical and retail—is particularly notable. From concierge medicine and infusion therapy to cosmetic dermatology and wellness spas, storefronts are now home to services once confined to hospitals or clinics. The demand for accessible, convenient health and wellness options continues to grow, especially in affluent areas, driving interest in high-traffic retail spaces.
Ethnic grocers are another rapidly expanding sector. Retailers like H Mart and Jagalchi are not just catering to immigrant populations but also to a broader audience interested in global cuisine. These grocers are leasing both large anchor spaces and smaller locations such as former Rite Aid stores, offering diverse food options while revitalizing underutilized real estate.
Digitally native brands like Wayfair are now experimenting with brick-and-mortar, bringing expansive showrooms to shopping centers. This hybrid retail approach allows online-first brands to connect with customers in physical spaces while complementing their e-commerce operations.
Similarly, children’s swim schools like Goldfish, Big Blue, and Stewie the Duck are taking over substantial retail space in suburban shopping centers. These schools offer a modern alternative to traditional venues like the YMCA, and their presence reflects parents’ prioritization of life skills and convenience.
Altogether, this wave of retail reinvention signifies a deeper shift in consumer values—favoring health, diversity, personalization, and lifestyle enhancement. For landlords, this means a broader pool of potential tenants and opportunities to create dynamic, experience-driven shopping environments that meet the needs of today’s multifaceted consumers.
