Retailers, commercial realty firms exchange ideas

Problems facing the retail industry were a secondary subject yesterday as retailers and local commercial real estate firms talked about possible partnerships and expansion at the annual Idea Exchange.

It remains to be seen how many deals actually come of the day, but for at least a few hours the talk was positive after a dismal year for retail.

The Idea Exchange, hosted by the International Council of Shopping Centers, was held at the Richmond Marriott downtown.

The conference, which kicked off with a reception on Tuesday, featured exhibitors in one of the hotel ballrooms representing shopping centers and services as well as panels that discussed capital financing and the future of retailing.

"We use this event to reconnect with some of our existing clients and to maybe meet some new ones," said B. Hunt Gunter, vice president of Henrico County-based real estate brokers The Wilton Cos.

Wilton was highlighting one of its biggest clients, West Broad Village, in western Henrico near Short Pump Town Center. Several of the area's largest brokerage firms also had booths with floor plans and sales materials of their properties on display.

Joining them were retailers looking to forge relationships with brokers who they'll need as they expand.

Dollar Tree, Great Clips, Panda Express and Walgreens were among the attendees.

Mike Pietrzyk, area representative for Firehouse Subs, said the Idea Exchange was a good place to talk to shopping-center owners and brokers as he looks to add restaurants in the area.

Pietrzyk owns the Virginia market for the chain of restaurants. He resells them to franchisees.

"We get to see what sites are available," he said. "We tell them what we're looking for. It's a good place to make relationships."

Talk of expansion and growth is rare these days as the retail industry has been hit hard by the recession, which has caused the failures of several large chains, including Henrico-based Circuit City Stores Inc. and S&K Famous Brands.

But Kenneth M. Gassman Jr., founder and president of the Jewelry Industry Research Institute in Hanover County and a former retail analyst with Davenport & Co., said some of the attrition is just part of the natural evolution of businesses.

"The typical life of a retailer is about 40 years," Gassman said at a luncheon yesterday. "Why 40 years? That's about two generations, and that's about as long as a merchant can last."

And once a retailer leaves, others are there to take its place, he said.

"The moment a retailer leaves the scene, two, three, four more merchants jump into the space vacated by that retailer, and the cycle starts all over again," he said.

Contact Louis Llovio at (804) 649-6348 or .