Rising costs and competition in the online marketplace, exacerbated by supply chain limitations, have unleashed waves of e-coms seeking out space in retail centers in Southern California.
A study from CBRE discovered that the number of online retailers leasing retail space in Los Angeles and Orange County increased by 367% in the past four years. The global retail services company counted e-coms occupying 167 storefronts (“click-and-mortar” stores) and 76 pop-ups in the region.
CBRE posits that expansion-minded e-tailers have found that physical stores are powerful generators of brand awareness and customer loyalty. Physical stores also tend to reduce strains on the supply chain by having products readily available in-store for online order fulfillment and pickup.
Nearly 60% of the SoCal stores reside in Orange County and West L.A. Brands leading the charge are SmileDirectClub, Alex and Anni, and Leesa.