Amazon vs Wal-Mart: “The Ants Will Get Trampled When the Elephants Fight”

JERSEY CITY, New Jersey – The industrial real estate game is changing. As big box retailers have closed-up shops, we are seeing two giants fill their space to pick up marketshare: Amazon and Wal-Mart. “Amazon and Wal-Mart will pick up the pieces they want,” says Kevin McGowan, President of McGowan Corporate Real Estate Advisors. “There will be some groups to remain independent. But there’s a fundamental change going on in both the retail world as well as consumer behavior. Consumers are expecting more and more.” McGowan says that while Amazon is building its own transportation network, not all retailers are reacting to the changing consumer and changing environment. In fact, a rising number of retailers face bankruptcy and distressed situations. In 2017, 9 major retailers filed for bankruptcy, heading toward the highest number of major retailers since 2009. Half of those are the result of firms being bought by private equity. Further, the number of retailers on the distressed list is at the highest level since the recession. As McGowan puts it, we’re seeing “real carnage.” RadioShack saw the closing of 552 store. Payless shoe stores said goodbye to 400 stores. 250 locations of The Limited folded. Wet Seal bid adieu to 173 stores. The list goes on and on, though some healthy retailers are adjusting their portfolio. So, who are the winners and who are the losers? According to McGowan, common retailers like Kohl’s and target are investing in…