A recent vote by San Diego-area grocery store workers authorized the Local 135 United Food and Commercial Workers to strike if negotiations with Albertsons, Ralphs and Vons cannot settle an ongoing labor dispute. The strike could have repercussions for grocers and in turn other retailers within centers anchored by these brands. New alternatives and modern technology platforms offering food and grocery delivery could worsen the impacts if another strike hits the region.
With changing consumer habits such as an increase in meal delivery services and grocery e-commerce, the grocery industry will face tremendous transformation over the next 10 years. Online grocery share will reach between 5% and 10% by 2022 and will fundamentally alter but not replace the brick-and-mortar store.
A considerable amount of big box space was brought into the market in the first half of 2019. Sears is experiencing bankruptcy scare, leading to 151,246 sq. ft. becoming vacant in the first half of 2019. There is fear that this big box space will sit vacant for a while.