NJ losing more retailers — will there be too much empty space?

⚫ Major retailers are closing their doors in New Jersey

⚫ Other retail establishments may not be the best choice to fill vacancies

⚫ Businesses are trying to adapt to what consumers want today

New Jersey residents still love to spend money in person, but habits, tastes, and finances are changing.

Despite what may seem like a wave of major retailers deciding to close their doors for good, experts say there's no need to fear a future of vacant shopping plazas and highways lined with dormant buildings.

In fact, there may be more businesses looking to move in than there are businesses calling it quits.

A business closure could feel like a gut punch to the local community, but it's seen as an opportunity to other businesses that are fighting for a space to call home.

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"New Jersey is the third wealthiest state and the most densely populated per capita, so with that there is a demand for retail and services," Jason Pierson, president of Pierson Commercial Real Estate in Marlboro, told New Jersey 101.5.

What's taking over?

But it's more rare in 2024 to see a shuttered location turn into the same type of business that had previously failed. Rite Aid locations, for example, have evolved into discount shops such as Dollar General and Family Dollar.

And sometimes straight-up retail isn't the answer for a location that's failed once or more as a pharmacy or shop. The number of urgent care centers in the Garden State has increased significantly over the last few years. Generally, these operations move into a vacant space and aren't the product of new construction.

Bigger locations, such as those left behind by Big Lots and Stop & Shop, are being eyed by businesses that can offer experiences, such as arcades, rock climbing, and pickleball.

"Another category — daycare. Daycares are extremely active taking over a lot of these vacant 10,000-square-foot spaces," Pierson said.

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The business landscape in New Jersey is always evolving. The supposed doom and gloom associated with store closures may just be more front and center today due to social media.

Shopping is the "New Jersey state sport," according to Marc Kalan, an associate professor at Rutgers Business School. But it's the job of businesses to pick up on what consumers want, and cater to it.

"Consumers continually change. They're not boring, they're pretty fascinating," Kalan said. "Good companies that just didn't see the change fell by the wayside."

Specialty retailers, which focus on one category of goods, are generally able to prosper, he said — as long as they're in a community with the right amount of demand.

"You don't have to be stuck in what you do today," Kalan said of businesses. "You have to be looking at what people need today, but also, where are they going tomorrow?"

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