The retailers that are going to survive will be the ones that recognize that everything that happens on the retail store floor and with the customer service execution is only as good as the back-up host — that is, the logistics in store fulfillment, and how you manage investment in inventory. And all of that is changing rapidly.
Those thoughts were according to Benjamin Conwell, senior managing director and national practice leader of eCommerce and Electronic Fulfillment Specificalty Practice Group for the Americas at Cushman & Wakefield.
Conwell joined Garrick Brown, VP and head of retail and research for the Americas at Cushman & Wakefield, at ICSC RECon 2018 for a session surrounding a futuristic exploration of how current technologies and convergent market trends will further reinvent the retail and logistics landscape over the next decade.
The growth of e-commerce and a wide range of other market trends are already reshaping the once divergent fields of industrial and retail real estate into the emerging world of “newCommerce,” said panelists. Brown cited a famous quote by Bill Gates—which is more than 20 years old—noting that it still rings true today: “We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next 10.”
According to Brown, the retail and logistics worlds will evolve as much over the next 10 years as they have over the last 50. “Our retail world is evolving at record speed,” he said.
This year, Brown explained, is the year of the voice, pointing out that in a few years out, 145 million households will have at least one if not two devices. And those who controls the voice has incredible power of favoring brands, he said. “If you are a retailer, you need to find out ways that you can market effectively on voice.”
Conwell agreed, pointing out that when you ask Alexa for batteries, she will go to Amazon basic and make a buying presentation decision for you. For a computer, he said, retailers want to be on the top of the screen when someone does a search, but now retailers have to translate that idea to voice. If you are Levi's, for example, and you ask Siri for jeans, you want her to say: “how about Levi's jeans?”
And almost all of the things the C&W panelists discussed are fueled by artificial intelligence, a topic numerous industry experts talked about at the event. They also talked about social media as a driver of retail destination visitation, with Greg Lyon, co-owner, principal and design director at Nadel Architects, noting that it will continue to grow. And for that reason, he tells GlobeSt.com, creating Instagram-worthy moments is a key component of a retail center's branding. “Gen Z's want to identify and be associated with hip, trendy brand experiences, posting from places where one 'wants to be seen.'”
Keep checking back with GlobeSt.com for more from experts in the next few days and weeks as we fully cover the RECon 2018 event, with thoughts not only from attendees and panelists, but coverage of sessions, parties and more (even after it is all over). Also, be sure to check out some related stories below.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
