LAS VEGAS–RECon's schedule may change, but retail concerns certainly have not. The challenge of e-commerce and how best to partner with it remains a focus here, particularly as it results in evolutions to store and center design.
One of the discussions of the show is the opening of the Leasing Mall on Sunday this year, rather than the traditional Monday, shaving a day off the schedule. Foot traffic appeared relatively light at the Las Vegas Convention Center on Sunday, as many attendees arrived late that day (a lot of people reported graduations). I've been told, however, that the meetings that were held were longer than normal and extremely productive.
But that's not the only change on the minds of attendees. On the positive side, the continuing recovery is giving more opportunity for new retailers. The down side, however, is that they should be smaller, more shallow, and probably will have to share the center with more food tenants, according to interviews I've conducted in Las Vegas.
E-commerce remains a focus, but instead of a threat, is now considered a challenge for stores as they find the best blend of Internet and brick-and-mortar presence. But there will be a lingering effect, as physical stores require less space, Ahsin Rasheed, chairman, president and CEO of Baltimore-based DDG told me. Depths have changed dramatically. Previously, mall stores were about 150 deep to accommodate inventory storage. Now, these stores now can be just 50 feet to 60 feet deep. This will change the size of centers going forward.
And look for ever more food uses to occupy centers, up to perhaps one third of leaseable space (you can't go out to eat online). That's a big shift for centers, where dedicating 20 percent to food courts and restaurants was a big deal. We may see a very different configuration of projects in the near future.
Changes, indeed.
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