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Vacation rental companies again are seeking to block Florida cities and counties from imposing local regula- tions on them, a move opposed by many property owners in parts of the state where short-term home rentals in single-family neighborhoods can be a noisy, disruptive nuisance. The battle over short-term vaca- tion rentals has become an annual tug of war in Tallahassee. Top lawmakers are sympathetic to arguments advanced by the industry that such rentals are a vital engine for RETAIL Florida’s tourism-driven economy, and also should be protected because of property rights concerns. But efforts to limit local rental reg- ulations have faced fierce opposition, ISN’T particularly from beach towns that have seen a proliferation of large rental homes in recent years. Resi- dents complain that living next to the DEAD, rental homes is equivalent to living See HOME RENTALS, Page 15A IT’S CHANGING

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Laura Layden Naples Daily News | USA TODAY NETWORK – FLORIDA

etail apocalypse. ❚ Those are the words often used to de- scribe the closing of countless stores across the country Nicklaus still active at almost 80 over the past decade, especially by big chains. ❚ But what Golf legend uses gym regularly, plans 1C does the trend with bricks-and-mortar stores really to stay connected to tournaments. mean? And how does that translate in Southwest Florida? R❚ The region has lost its share of stores and retailers, just as the nation has Weather waved some good-bye forever. Some of the retailers that have disap- Volume 96th | No. 179 High 82° ❚ Low 64° peared in the past decade — locally and nationally? Toys R Us, Sports Home Partly sunny. delivery 34B Authority and Payless Shoesource. See SHOPPING, Page 4A pricing Forecast, inside Subscribe 800-404- 7343 ©2020 $3.00 XEJDHH-10055u BRADY POTTHOFF/USA TODAY NETWORK ILLUSTRATION; GETTY IMAGES ILLUSTRATION; NETWORK TODAY POTTHOFF/USA BRADY

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Retail renewal

Shopping

Continued from Page 1A

Remember Orchard Supply Hard- ware? It’s gone too, not just in South- west Florida, but everywhere. How about Dress Barn? Stores closed perma- nently last year, including one in Estero at Miromar Outlets in August. Other large chains have gone belly up or drastically reduced their footprint, closing thousands of stores here and across the country. Sears shuttered its Naples store at the Coastland Center mall in November 2018, and its store at Edison Mall in Fort Myers will soon go dark. Why? The mer- chant said it’s faced “a difficult retail en- vironment and other challenges.” Closer to home, Fort Myers-based Chico’s FAS, a national women’s retail- er, announced a “retail fleet optimiza- tion plan” a little over a year ago that will shutter 250 of its stores across the coun- try by 2022. Pier 1 Imports and Macy’s are some of the latest retailers to announce plans for closures. It appears their locations in Southwest Florida will be spared — for now — seen as a good sign for this mar- ket. Some retailers are shutting stores in A crew works Aug. 27 on demolishing a building that Sears had occupied at the Coastland Center mall in Naples. Southwest Florida to change locations, ALEX DRIEHAUS/NAPLES DAILY NEWS such as Chico’s FAS, which will relocate its Chico’s, White House Black Market and Soma boutiques from Bell Tower highest number since the global re- sources, from wages to investments to especially on the weekend. Shops to Daniels Parkway in Fort Myers, search firm began tracking the data in government benefits. Per capita — or av- “You can hardly get a parking space,” at the end of the month. 2012. erage income — in the county stood at he said. “We look forward to joining the other So is physical retail dying? Local and $87,829 in 2017, according to a statewide In fact, the Costco in Naples is ex- great retailers in the plaza and welcom- national experts say that’s not the case report. panding, with plans to add at least 9,632 ing our customers to our new location, — especially not in growing, affluent The retail industry remains one of square feet, according to county rec- while delivering the most amazing per- markets, such as Southwest Florida, the top drivers of the local economy, as ords. sonal service that we’re known for,” said where there’s plenty of purchasing pow- one of the leading employment sectors. Pashen Black, the company’s director of er — driven by residents and tourists “There is a misconception that retail Not ‘cataclysmic’ corporate public relations and social alike. is dying. And that’s not true. Retail is marketing, via email. Based on U.S. Census data, Collier changing,” said Stan Stouder, a found- When Stouder sees big box stores go- In 2019, American retailers an- County — or the Naples-Marco Island ing partner of CRE Consultants in ing dark, he doesn’t view it as “cataclys- nounced more than 9,300 store clos- area — has consistently ranked as one of Southwest Florida. mic,” he said. ings, up nearly 60% from 2018, accord- the top areas in the country for personal Case in point? Go to any Costco, ing to Coresight Research. That’s the income, which includes income from all Stouder said, and “they’re all mobbed,” Continued on next page

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Retail renewal

Continued from previous page the Great Recession ended, despite the exit of major retailers and the addition “When I see a box go empty, I don’t of new neighborhood shopping centers correlate it to dynamics within a specific too numerous to count. market, like Southwest Florida,” he said. The rental rate stood at 5.1% at the “It’s a national chain. It’s a nationally end of last year for Lee, Collier and based decision based on how we as con- Charlotte counties — up a half a percent sumers are changing our habits.” from 2018, but still signaling a healthy Retail isn’t just about selling prod- market, Stouder said. ucts anymore. There’s been a shift to- Retail rents declined 2.5% in 2019, he ward what’s been dubbed “retailtain- said, but that shouldn’t trigger any con- ment,” as customers demand better cern. shopping experiences, from wine tast- “If it went down 10%, that would be ings to educational talks. cause for some digging,” Stouder said. Stouder points to Dave & Busters — a Rental rates are a key factor for retail- restaurant and video arcade — as an ex- ers, as it’s typically one of the highest ample of the trend. Since replacing the costs of doing business, said Nelson former Saks Fifth Avenue store at the Taylor, a veteran appraiser and market Bell Tower Shops, the family-friendly research director with LSI Cos. in Fort chain has offered a new experience Myers. that’s made the open-air shopping cen- With the exit of long-time retailers, ter more popular, bringing in new cus- he said, the market is seeing tenants tomers and generating more repeat traf- take their place that don’t have as much fic, he said. of a history in Southwest Florida — and Dave & Busters is just one example of they’re paying higher rents because major chains that are expanding nation- El Dorado Furniture replaced Sports Authority at Airport-Pulling and Pine Ridge they come with more risk, which could ally — locating in prime locations left roads in North Naples. The store has a purple glow at night, as seen in this photo weaken their staying power. behind by other retailers, such as Saks taken Jan. 15. LAURA LAYDEN/NAPLES DAILY NEWS “They may not be able to stay as long Fifth Avenue and Sears. as a typical tenant, which is about a While more people shop online these five-year lease term,” Taylor said. days, it doesn’t mean they don’t want to ❚ In September, a JoAnn Fabric & In some cases, stores are getting de- “They’re meeting today’s consumer- go to shopping centers anymore, Stoud- Craft store took the spot of the old World molished to make way for new uses. ships, but will it be the same three or er said. Market at Coconut Point in Estero. That’s what happened with Sears at fours years from now?” “People starve for community,” he ❚ About a month later, a Ross Dress Coastland Center, where a new upscale In this day and age, retailers need to said. “A shopping experience is not just for Less store opened in the Tarpon Bay theater is rising called CMX Cinebistro. be more nimble to stay alive, so long- a shopping mission. It’s a way to be im- Plaza between Panera Bread and World Some of the empty retail space in the term leases are no longer as attractive, mersed in society.” Market in North Naples, replacing Sta- region has been converted to medical or common, said Justin Thibaut, LSI’s While a dizzying number of stores ples. and professional offices, as well as president. have closed in Southwest Florida, many At Granada Shoppes, sitting at the housing. Southwest Florida remains an attrac- others have opened in their place. corner of U.S. 41 and Immokalee Road in While there are still some large tive market for retail shops, he said, be- Some more recent examples? North Naples, two empty spots will spaces sitting empty in Southwest Flori- cause it continues to add “rooftops,” or ❚ In July 2018, El Dorado Furniture soon fill up, with the addition of Jersey da, most have been backfilled, evi- more homes, at a rapid rate and to lure opened in place of the Sports Authority Mikes Subs and Sports Clips. denced by the low vacancy rate for retail in new residents thanks in big part to in Naples, at the northeast corner of Air- The former home of Orchard Supply in the region. Florida’s business- and tax-friendly en- port-Pulling and Pine Ridge roads. An El is still under lease and it’s being market- “I find that there are new names on vironment. For those reasons, some big- Dorado outlet also opened in a former ed for sublease, said Rod Castan, presi- old buildings,” Stouder said. box retailers are keeping stores open Sports Authority location in Fort Myers. dent of leasing and management ser- here, while pulling the plug on them ❚ About a year ago, Ollie’s Bargain vices at Courtelis Co., the shopping cen- Vacancy rates low elsewhere. Outlet replaced the former Sports Au- ter’s developer. “We are different in that we continue thority in Fort Myers on Ben C. Pratt “The center continues to perform In Southwest Florida, retail vacancy Parkway in Colonial Square. well,” he said in an email. rates have been in the single digits since See SHOPPING, Page 6A

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Retail renewal

Shopping

Continued from Page 5A to have an influx of new buyers entering our market at an exponential rate,” Thi- baut said. “Without that we would probably be looking at a different sto- ry.” The in-store experience remains crucial and some retailers have made big strides in that direction. A good ex- ample of an experience-driven shift, Thibaut said, is the revamp of Com- cast’s Xfinity stores, which offer a much more inviting and interactive way to discover and optimize its TV, phone and internet services, allowing customers to touch and feel the prod- ucts before making a choices. Scott Shalley, president of the Flori- da Retail Federation, couldn’t agree more. In an emailed statement, he said the state’s retail industry is thriving be- cause retailers are “adapting to meet the needs and demands of consumers.” “What we’re seeing among success- ful retailers in Florida is that they’re blurring the lines of their businesses,” he said. “No longer are retailers divid- ing food and drink and shopping into separate silos. They don’t consider in- store and online shopping to be differ- ent platforms.” The retailers that are succeeding are “breaking down the barriers between The Edison Mall in Fort Myers recently was sold for $33.4 million. AMANDA INSCORE/THE NEWS-PRESS/USA TODAY NETWORK - FLORIDA products and services to make shop- ping a more engaging experience for the consumer,” Shalley said. includes Levi’s, Michael Kors, Sketch- One of the ways retailers are blurring ers and Under Armour. the lines of their business? More are of- Bath & Body Works is in the midst of fering the ability for customers to buy adding to its space, Staner said. items online and pick them up in the Stores that have recently opened at store, often within an hour. Curbside the mall — or are about to — include service is also growing, taking conve- Travelpro, Sperry, Aerie and Salt Life. nience to a whole new level. New restaurants have come to the In grocery stores, customers can sip shopping center too, while others have a cocktail while they shop, offering expanded, filling empty spots. them a more relaxing experience. There continues to be strong con- sumer demand for good, quality prod- Strong momentum ucts at a more reasonable price. “Customers want something that is While there are winners and loses in going to last, but they don’t want to the market, there’s still strong momen- have to pay a lot for it,” Staner said. tum in the retail industry overall. Retailers saw a healthy holiday sea- The future son with sales growing 4.1% nationally to more than $730 billion in 2019, com- What will the future hold for retail in pared with 2018, according to the Na- Southwest Florida and elsewhere? tional Retail Federation. Those num- Gary Tasman, CEO of Cushman & bers include online and other sales Wakefield Commercial Property South- made outside of stores, which in- An outside view of the new Five Below store at Carillon Place off Airport-Pulling west Florida, has some ideas. creased 14.6% over the year — growing Road in East Naples. LAURA LAYDEN/NAPLES DAILY NEWS As for the grocery store wars, he sees to nearly $168 billion. them continuing to heat up with addi- “These numbers validate continued tional products and services offered to optimism for increased investment and lington moved into the former Sports best offer everything their customers try to get ahead of the competition, opportunity in the retail industry,” said Authority spot in 2018. are looking to do in one place and a such as free delivery. Tasman pointed Matthew Shay, the national federa- Southwest Florida has seen a surge unique experience that helps build a to Amazon’s recent decision to expand tion’s president and CEO, in a news re- in the construction of a different kind of sense of place, which could include ev- its free two-hour delivery service for lease Thursday. retailer — gas stations. Wawa, known erything from trampoline parks to yoga groceries to all of its Prime members. “This is a consumer-driven econo- more for its high-quality, inexpensive studios, Isner said. “It’s new and it’s going to change the my, and by any measure, the consumer food and freshly brewed coffee than its “Authenticity is a word that is get- landscape a lot,” he said. has put the economy in a solid position gas, made company history in October ting used a lot lately,” he said. “People He expects to see more stores close for continued growth,” he said. when it opened Collier County’s second want authentic experiences.” and get repurposed and for more cus- Other winners in retail? Discount store — its 200th in Florida. Top-performing retailers have found tomers to start reaching their shopping merchants, including more affordable Following a national trend, South- ways to deliver what customers want destinations by using ride-hailing ser- grocery stores. Consumers remain west Florida has seen the opening of on all platforms, from their bricks-and- vices, such as Uber and Lyft, leading hungry for bargains — and for good, more discount stores such as Five Be- mortar stores to their websites, Isner him to wonder what will become of the healthy food. low, Dollar Tree and Dollar General over said. huge parking lots that he suspects will Speaking of food, Southwest Florida the past few years. These stores have “Stores have taken on a whole new no longer be needed in Southwest Flori- has seen a grocery store boom, with continued to thrive, despite the grow- role,” he said. “They aren’t just places to da. niche players such as Sprouts, Aldi and ing might of e-commerce. buy things anymore. Now it’s a show- “I think what you are going to see is Lucky’s Market entering the market Last year, e-commerce behemoth room. You can go in there and you can more product being delivered to the and expanding at a rapid clip across the Amazon surpassed Walmart as the touch and feel what you want to buy. market via different and more creative region. Some stores are opening in new world’s largest retailer, topping Wal- You can go online if they don’t have ways, like pop-ups,” Tasman said. “I locations, while others are snatching mart on Forbes’ Global 2000 list of the your size and buy it.” would envision that wherever people up vacant spots left behind by other re- biggest public companies. Closures have hit outlet malls too. aggregate, there will be pop-ups when tailers. Still, most sales in the U.S. happen in Like more traditional shopping malls they are there, and they will be gone Discount grocer Aldi recently closed actual stores. In fact, Amazon con- and shopping centers they continue to when they are not there. That’s a big on the purchase of 2.33 acres at the tinues to expand upon its own bricks- lure in replacement tenants in South- trend in retail.” northeast corner of Six Mile Crossing and-mortar presence after taking a west Florida. He sees the demand for retail space Boulevard and Six Mile Cypress High- leap in that direction with the acquisi- While Miromar Outlets has lost a slowing in the not-too-distant future. way in Fort Myers, claiming the two re- tion of Whole Foods, one of the nation’s handful of stores in recent years, the “The idea that you need ‘x’ number maining outparcels at the Springs at leading natural and organic foods su- shopping center not only continues to of square feet per hundred people, that Six Mile Cypress. Many of the commer- permarkets, in 2017. bring in new ones, but the departure of number is going to go down,” Tasman cial development’s concepts are — or larger retailers has given other tenants said. “We just don’t need as many will be — new to the Southwest Florida, Location, location, location room to expand, said vice president square feet of retail.” including Tiger Woods’ forthcoming Jeff Staner. Tasman anticipates big shifts in how “PopStroke” entertainment complex. Locating in the right spot — and in “We find the retail market continues retail stores draw their customers in, This year construction crews are ex- the right kind of shopping center with to be strong in this area, due to the fact including offering more fun and educa- pected to break ground on Topgolf, an- diverse offerings from dining and en- that Southwest Florida is a vacation tional events and entertainment. He other golf-centered entertainment tertainment venues to lifestyle and fit- destination and shopping always ranks sees the day when he’ll walk by a store venue, on land off Colonial Boulevard ness operations — is key to the success among the top three things people do and glimpse a hologram of himself near Interstate 75 in Fort Myers. of more traditional retailers, said Bran- here,” he said. showing how he’ll look in a trendy The changing landscape of retail don Isner, a leader of market research Traffic at Miromar Outlets has risen sports jacket displayed in the front shopping has transformed the look of and insights for CBRE in Florida. consistently over the past two decades. window. Pine Island Road in Cape Coral, near “Retailer developers have done a The center saw roughly 8 million shop- Retailers using artificial intelligence Pondella Road. really great job at making these great pers last year, including year-round and other smart technology are the The North Point shopping center lost retail centers, especially here in Flori- and part-time residents from the area, ones that will be more likely to win the an A.C. Moore and a Circuit City, but it da,” he said. “Shopping can be an activ- as well as visitors from out of town, in- retail race, he said. has since picked up a Bed, Bath & Be- ity where you go out early and end up cluding international ones, Staner said. “Bricks-and-mortar will not die,” yond, a Five Below and an Aldi. Nearby, having lunch.” Nearly a half a dozen retailers ex- Tasman said. “There is always going to at the Coral Walk shopping center, Bur- The shopping centers that perform panded at the outlet mall last year. That be a place in the economy for it.”