Retail Reckoning For Suburban Strip Malls

Suburban strip malls have been a staple of Long Island's retail identity – convenient, accessible, and often anchored by big-name national chains. But, as retail trends evolve and those anchor tenants face uncertainty and for some, extinction, these once thriving properties are faced with the looming question of what comes next. For example, Rite Aid has struggled to stay afloat after filing for bankruptcy in 2023 and has left several Long Island landlords with vacant storefronts. However, this story isn't unique to Rite Aid. Sears, Kmart, Bed Bath & Beyond, Party City – all large household names that at one-point anchored centers across Long Island. Now, these brands have downsized or disappeared entirely.

Rite Aid joins a growing list of retailers that now are either extinct or dramatically reduced in presence but once served as key anchors for many Long Island centers. JCPenny and Lord & Taylor filed for bankruptcy and shut down key Long Island locations. Bed Bath & Beyond left large footprints across Long Island after liquidating in 2023. Toys "R" Us, Office Max and Party City have all closed stores creating large format vacancies. Not only do these closures leave visible gaps in the retail landscape, they highlight a larger trend: many legacy retail chains are no longer reliable long term anchors.

Extra pressure is placed on property owners when an anchor tenant vacates. Anchor tenants traditionally occupy large space in the center meaning the spaces are difficult to fill quickly and expensive to retrofit. Additionally, such vacancies reduce overall traffic to the center, can decrease property values, and create challenges in attracting other tenants who relied on the anchor tenant's draw to the center. Thus, landlords are left with the pressure of reinventing these spaces to achieve the same success those once anchor tenants brought to the center.

Many Long Island landlords are responding by repurposing old big-box locations into urgent care clinics, fitness centers, or multi-tenant service hubs. These new uses prioritize convenience, health, and community, aligning more closely with the consumer demands we see today. By enhancing the tenant mix and attracting a diverse range of tenants, including local businesses and service providers, a vibrant community atmosphere is created. Additionally, landlords are renovating and modernizing properties to improve their appeal and functionality. Below are some examples of anchor tenants and the ways in which their spaces have been reinvented. These examples show that reinvention is not only possible; it is necessary.

Brands such as Rite Aid and the others mentioned above serve as a cautionary tail for strip malls on Long Island. These properties must evolve to stay relevant. While the decline of anchor tenants poses significant risks and challenges, it also presents opportunities for innovation and revitalization. Landlords who proactively adapt to changing market dynamics can turn potential setbacks into pathways for growth. For landlords, developers, and municipalities, the challenge is to meet the moment—with creativity, flexibility, and an understanding of the local community.The future of suburban retail may not look like the past, but with the right strategy, it can still thrive.

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