What: Retailers are opening new locations at their fastest pace in years as shoppers visit stores again in numbers rivaling 2019 levels.

Why it is important: As foot traffic increases in stores, retailers that want to expand physical locations should consider the proper type of store and location first.

Placer.ai, a research firm that tracks foot traffic, estimates that overall, apparel stores saw 5.4 percent more foot traffic in the third week of August compared to the same period in 2019, even as Covid-19 cases surged in the US.

It is not sure if this increase will be sustained, or if it will fall off as shoppers spend their stimulus checks and extra money that they were not able to use on holidays and travel due to the pandemic.

Digital newcomers are driving much of the physical retail revival. In their filings to go public, Allbirds and Warby Parker pointed to retail expansion as key to their plans to scale, with stores both driving revenue and building brand awareness.

During the epidemic, however, several established fashion businesses reexamined their physical retail strategy. Often, this means shutting stores that aren't successful and creating new ones with e-commerce features like curbside pickup and virtual styling, as well as experimenting with novel formats like smaller locations or shop-in-shops.

Brands must consider two major things: the right store and the best location.

• The right store: Simply building a store isn't enough to maintain current retail success. Whether it's having localized store features or offering in-store pickup, brands must provide a compelling and easy experience for shoppers.
• The best locations: It is important for retailers to implement the appropriate regional strategy. Different markets are rebounding at different rates, which retailers should keep in mind when considering expansion. According to Cushman & Wakefield's Scardina, the American Sun Belt area, which is the country's southernmost region, is surpassing recovery in big cities like New York and San Francisco.

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