NUMBER CRUNCH

WeWork’s Bid to Save Retail — and Itself

Is the collaboration with Saks the future of the retail sector?

$299: That’s the monthly membership fee to join SaksWorks, the collaboration between Saks Fifth Avenue and WeWork aiming to solve the issue of empty retail space.

WeWork has endured one hell of a rollercoaster in the past few years. From its meteoric rise and subsequent spectacular fall, the company has somehow lived to tell the tale. Not only having to rebuild its brand and reputation, the company had to contend with a global pandemic that shuttered businesses and moved the workforce into their homes — a bad position for a real estate business to be in. (Yes, real estate company, not a tech company. No one buys that anymore, right?) At one point, occupancy at WeWork buildings had plunged 30%, and losses quadrupled to $2.1 billion. The company had to dig deep while the shelter-from-home orders remained in place. But it could have been worse. Other sectors such as retail have been impacted much harder. In 2021 alone, there has been a record 12,200 closures, and many more will follow. Ironically, despite being a major factor in the turbulence in these sectors, the pandemic may also provide a lifeline to both. The impact is forcing a rethink on how to use retail space — especially the empty ones —…