NEW YORK CITY—Gone are the days when you would just need a big piano, an ornate glass spiral staircase or a larger than large department store and the people would come to your flagship. But as JLL reminds GlobeSt.com in this EXCLUSIVE interview as part of the lead up to ICSC New York National Deal Making Conference, FAO Schwartz, Apple, Macy's and their ilk are only halfway there if they've created a memorable and unique experience.
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GlobeSt.com caught up with JLL's Rick Miglorielli, SVP of Project and Development Services here, and Michael Hirschfield, SVP of JLL's Retail Tenant Services, to get their DOs and DON'Ts of operating a successful flagship. And they agreed on the secret: Renovate and reinvent, regularly.
“Flagship stores are more than just a real estate investment that encompass a city block; they are the brightest diamond in a retailer's crown. Flagship's play a crucial role in a company's brand strategy,” said Migliorelli. “Unlike other stores in their chain, often the purpose of a flagship is not only to generate profit but to create brand recognition and differentiation. The store provides an opportunity to lure customers into an experience in an innovative and memorable way, raising brand awareness on a truly personal level.”
To stay top of mind for shoppers, increase foot traffic and build brand awareness a flagship store should consider renovations to enhance its current footprint. Migliorelli maintains there are two Do's and a Don't to keep in mind when renovating or establishing a flagship store. As he sees it:
"DO use a flagship store to test the market. As a destination store, retailers can reposition their brand, trial new products and/or assess store design concepts. This space can be a trial run for international brands coming to the U.S., or domestic brands seeking more visibility.
"DO think about infusing new technology and new media throughout the store. Create a new mobile app to guide customers as they shop, and upgrade presentations to be tailored toward millennials. Equip your staff with better point of sale devices to expedite traffic, and educate them on product changes and new customer offerings.
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"But DON'T think you're done when the dust settles! Getting a flagship store up and running smoothly is only half the battle. With so much at stake, keeping the store relevant, timely and engaging is not only important, it's critical to keeping the flagship on course and ahead of its competition. Keep your flagship relevant through continuous renovation."
Hirschfeld concluded that, “A flagship doesn't always have to be the multi-level and 30,000 square-feet on a main street we think of, it can be a 2,500 square-foot store in a hip part of town. Regardless of size and shape, every brand needs a store that they consider their flagship -- the place that's telling their story to the consumer, selling their lifestyle and that embodies everything their brand stands for.”
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Geoffery Metz
Geoffery Metz is the content manager for ALM's GlobeSt.com, Credit Union Times and Treasury & Risk. Before joining ALM, he spent several years overseeing the newsroom at the financial wire service Business Wire, with special focus on multimedia presentation for the web.
