Retail Franchising: Is Brick-and-Mortar Still a Safe Bet?

Many prospective franchise owners are looking for something “Amazon-proof.” They don’t want the costs of a brick-and-mortar franchise, and they don’t want to risk investing in something that consumers may shift away from should the product become available online. This strategy has its merits, but it’s not the only justifiable approach to franchise investing.

According to the latest Q2 2026 U.S. Retail MarketBeat report from Cushman & Wakefield, brick-and-mortar retail is not dead. Far from it. Demand for retail space is bouncing back, and national vacancy sits at about 6%. The historical average for vacancy rates is over 7%. Cushman & Wakefield also reports that, in Q2, retail sales increased by 6.9% year-over-year. These trends represent an interesting balance in the retail space.

“Consumer spending is becoming more selective, but that doesn't necessarily translate into weaker retail real estate performance,” James Bohnaker, senior economist at Cushman & Wakefield, said in the report. “We're seeing demand concentrate around grocery, discount, health and wellness and other necessity-based concepts that continue to expand.”

Notably, the report also highlights a limited construction pipeline. While consumer spending is driving a portion of retail success, keeping vacancies low, there is also the supply factor. In retail franchising, finding the right spot is crucial to long-term success, and prospective owners must consider this as part of the larger investment review.

Ultimately, a tight real estate market shouldn’t scare off strategic investors. While limited real estate can create a barrier to entry, it also validates the continued value of physical storefronts and in-person shopping. The key to winning in today’s market isn’t necessarily avoiding brick-and-mortar entirely. It can be partnering with a franchise network that has strong support, a favorable reputation with landlords and the site selection expertise necessary to help you secure the right location.