- They have many specialty items with a lower secondary-market value. This can have several negative impacts on the overall recovery; especially since retailers constructing new stores in the marketplace generally opt for new, rather than recycled, facilities and equipment.
- There are several marketplace challenges at work:
- The market can become quickly saturated, driving the recovery return value down.
- Logistics are a major factor in determining if value can be recovered after freight is considered.
- Not many buyers can handle the volume of assets generated by one project, forcing the retailer to conduct several individual sales for one project, which increases the cost of sales.
Retail investment recovery continues to grow and evolve
Retailers are always trying to outdo each other with new presentation and technology in their stores and distribution centers; changing and expanding dry goods, grocery, restaurant and other service offerings. Considering the constantly changing face of retail, 2007 looks to be yet another strong year for retail asset recovery. As retailers focus more on the benefits of effective surplus asset recovery operations, the Investment Recovery Association provides a solid business assistance vehicle, with tools and opportunities to support and enhance these efforts. Being a strong resource for professional development, information exchange and marketplace services—the Association likely will see increasing membership interest from the retail sector.