The Retail Reaping
Plus 7 fundings, 2 pieces of news, and 7 worthwhile reads
If you look at the excellent visualization below from CBInsights (under One Last Thing), it shows all of the bankruptcies . . so far . . . of retailers in 2020.
I know certain people are going to bemoan the pandemic as the death knell for these poor, unfortunate retailers, but hit the pause button for a moment.
Ask yourself how much sleep you lost when Pier1 filed for bankruptcy.
How much weeping and gnashing of teeth cam from the demise of Hertz?
Probably not much.
And that’s point worth noting here as we think about what retail and retail properties look like post-COVID.
If these brands had deep, nuanced e-commerce platforms and had engaged with their customers like Bombas or Warby Parker, I doubt they would be on this list.
This is the new normal of retailing in the 21st century and the thoughtful landlord should be paying attention. Not only should we (landlords) work on this list and think through forward-looking tenants, but we should also think about physical/digital ways to reinforce that customer-centric branding and experience.
How do we use our technology resources to make the in-person experience even more memorable than the online experience?
This is what people have been contemplating when they say things like place-making and experiential retail for more than a decade now. Retailing is now about an experience that goes beyond a simple transaction fulfilling one of Maslow’s needs.
It’s deeper than that.
And the brands below missed that lesson.
Some of these may emerge from bankruptcy and come back stronger than ever. But what I hope you notice is that COVID has only accelerated an already quickening decline.
Put another way, this was going to happen to these brands sooner or later anyway. COVID simply sped up the train that was already headed off the tracks.
So as much as I mourn for the employees and stockholders of these companies, the marco-view part of me is actually encouraged. This is a reaping that needed to happen and we will be left with our strongest, most consumer-obsessed brands on the other side.
And don’t be surprised if Mattress Firm makes this list . . .
On to this week’s deals and data:
Fundings:
Mighty Buildings, a 3D printing/Prefab company that builds (prints) homes, raised $30M led by Khosla Ventures.
Buildots, a London-based computer vision startup focused on construction, raised a $13M Series A led by TLV Partners.
Room, an office design technology startup, raised $12.5m led by Slow Ventures.
Zibo, a payments platform for small MF landlords, raised $10.5M from Canaan Partners.
Breezeway, a cleaning/turnover management startup, raised $8M led by Schooner Capital.
Proper, an accounting software platform for MF, raised $4.8M led by MetaProp.
Feather, a furniture rental startup focused on apartment renters, got a loan.
Funds:
Paid subscribers only.
News:
Apparently robots are taking over CRE.
The WSJ has a piece on the Hospitality Industry turning to technology to lure guests back.
Worthwhile Reads:
“Work remotely. Don’t port the office.” Great article from the founders of Basecamp (and now Hey) on how Remote Work is a platform.
The ten types of innovation according to Visual Capitalist.
Propmodo explores the concept of your landlord as your business advisor.
DealPath continues its press tour with a piece in Motley Fool.
Goodwin talks about the future of retail properties.
Propmodo wants real estate owners to start thinking about their property’s second lives.
This is a cool article from Bloomberg on how accessibility reshaped cities.
One Last Thing:
CBInsights with another data visualization win. These are the retailer bankruptcies of 2020 (so far):
Thanks for reading!
Our next subscribers-only virtual happy hour will be August 14th at 7 EST/4 PT. If you want to join, become a paid subscriber and I’ll get you on the invitation!
If you learned something from this newsletter, please send it to a friend. If not, send it to someone you hate and help me clog their inbox.
If you have any financings, articles, or suggestions for me, please reply to this newsletter and tell me what’s shaking.