Part 1 of 2
LAS VEGAS-The future of retail has arrived and the silos between brick-and-mortar and e-commerce have been broken down, according to panelists at ICSC RECon 2013 session titled “Bricks and Clicks.” According to panelist Vince Corno, ICSC trustee and SVP of real estate at Saks Inc., “if you look at the history of the regional shopping center, the rules are changing at a dramatic pace, probably more than we ever anticipated.”
This digital tech revolution is a big deal, says Corno, and Saks is investing a lot of money to try to be the best at it, he says. “The buzz word in our shop now is omnichannel, and we think the winner at the end of the day will be the retailer that can combo brick-and-mortar and e-commerce best.”
The session was moderated by Holly Cohen, ICSC trustee and SVP of global real estate and construction for Claire's Stores Inc., who asked panelists about how important the brick-and-mortar experience still is. Corno said that while Saks is still trying to wrap its arms around all of the evolution, there is no doubt that the brick-and-mortar experience is still an important piece and at the end of the day, it is about the brand and the image people will take away… “It is the smile of the associate helping you, and not how well a website navigates,” he says. “It's still about the buzz and the image.”
But what's important, Corno said, is to combine the business operations and break down the silos to create consistency across all channels. “There are huge benefits to that and synergy there to be gained in terms of cross selling and cross promoting.”
But the company is still in an evolutionary period with respect to e-commerce. “Our government is catching up with technology in terms of sales tax, and the whole notion of free shopping, free returns, and same day service, is changing the model,” says Corno. “As these standards evolve, the e-commerce model starts to look more and more like a bricks-and-mortar model in terms of return.”
Another interesting point, Corno said, is how tech is affecting distribution. “Tech has also permitted us to be more efficient in distribution allocation,” he says. “As the concept evolves, you will probably carry less product in the stores, the square footage might be smaller. But you have to continue to have the service. I wouldn't be surprised if some e-commerce only retailers get into brick-and-mortar.”
Check back in the next day or so for part 2 of this story, where Carrie Murray of Weingarten Realty, Richard Childs, VP of business operations at Disney Store North America in Pasadena, CA and other RECon 2013 attendees weight in.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, 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.
