REAL ESTATE
Developer: Amazon ‘great’ for brick-and-mortar retail
The founder and CEO of upscale real estate company Caruso has a somewhat contrarian view when it comes to Amazon.
In an appearance on CNBC’s “Squawk Alley ,” Rick Caruso addressed the so-called “Amazon effect” and shared his belief that the online retailer has actually been “great” for brick-and-mortar business.
Caruso, the only U.S. based developer with two shopping centers (The Grove and The Americana at Brand, in Los Angeles) in the Top 15 in the world based on sales per sq. ft., said he believes that e-commerce companies like Amazon teach retailers how to be more effective and competitive in the marketplace.
He also noted that retail is shifting to a hybrid model as online retailers recognize that “the social interaction with their customer – the sense of discovery and the sense of experience is critical to an overall retail strategy.” The fact that Amazon is opening physical stores “tells us that a hybrid model where you have digital and you have (brick-and-mortar) retail is very important,” Caruso said.
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