Inflation hasn't stopped brick-and-mortar retail

Jim Taylor, the CEO of Brixmor Property Group, joined TheStreet to discuss how inflation is impacting brick-and-mortar retail.

Transcript

00:00 We cover the inflation as a pressure point,

00:03 potential pain point for a lot of these companies.

00:05 How is it impacting Bricksmore when you see inflation

00:08 and the connection between the consumer

00:10 and the pressure point the consumer is facing

00:12 all the way to your role?

00:14 Well, the consumer obviously has been struggling with it.

00:17 We're very pleased, as I know everybody is,

00:20 to see inflation begin to moderate,

00:22 particularly if you've seen the recent durable goods data,

00:25 and more confidence overall

00:27 that hopefully we'll have a soft landing,

00:30 which we certainly haven't been expecting

00:32 for the last several quarters.

00:34 For us as a landlord, inflation obviously impacts

00:38 what it costs us to reposition a box

00:41 or what it costs us to put in new HVAC systems, et cetera.

00:45 Fortunately, that's been offset by the growth in rent.

00:49 And one of the things that we're benefiting from

00:51 as an industry is that there's virtually been no new supply

00:55 in the open air industry for several years

00:57 because of that bricks and mortar retail narrative is dead.

01:01 It's been the best thing for the business.

01:03 So as you look out, not only today,

01:05 but for several years to come,

01:07 you can't really see any new supply

01:09 'cause it takes a long time to deliver,

01:11 lease up, build, et cetera,

01:13 which I think puts retail landlords like Bricksmore

01:17 in a great position to continue to drive growth and rent.

01:20 And that's what we've been doing.

01:21 We're setting records as it relates to rate

01:24 and occupancy and leasing volume.

01:27 So in that way, even with this bit of near-term disruption,

01:32 we feel really good about how our business is positioned.

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