Convenience, quality and experience are the key deliverables for today's customer. Make it easy, of high value and enjoyable. That is according to Craig Trottier, SVP at Trammell Crow Co. “Today's shopper has less time, less money and less patience for retailers to 'get it right.' They also want shopping to be an event and a social experience.”
Although e-commerce still accounts for less than 15% of retail sales in the US, it dramatically impacts consumers' expectations and will increasingly influence retail trends, Trottier tells GlobeSt.com. “Sales of consumer goods perceived to be commodities—which include books, electronics and office supplies are migrating online. Retailers who have been able to seamlessly integrate their bricks and mortar stores with their online presence, have been able to engage customers successfully, while those who haven't struggle to compete.”
According to Trottier, omni-channel retailing is becoming more mainstream. “Retailers that haven't adopted omni-channel retailing are racing to catch up to businesses such as Nordstrom, Apple, and others,” he says. “Many retailers, such as Macy's, are turning their stores into distribution centers.”
Retail centers are also becoming community social and entertainment centers, he adds. “Landlords are working harder to create complementary tenant mixes that keep shoppers coming multiple times each week. As a result, new amenities (such as water features, parks, concierge services, entertainment and Wi-Fi), wellness concepts, food purveyors, medical centers, and educational uses are becoming part of the fabric of retail lineups. Health-conscious consumers are driving the growth of health-oriented retailers, including fitness centers, organic food stores, and healthy restaurants. These combine to create experiential retail that gives consumers a reason to visit retail centers rather than shopping online.”
As for outlet stores, Trottier notes that they have expanded rapidly in recent years, making them one of the fastest-growing segments in retail. “Traditionally built on the outskirts of town, outlet centers and their tenants are moving closer to major cities as well as integrating in traditional retail projects,” he says, “Today's consumer is both brand-aware and cost-conscious, making them ideal outlet store shoppers. This trend is illustrated by the fact that more than half of all Saks stores are now outlets and the vast majority of growth for Nordstrom is via their Nordstrom Rack stores.”
And retailers are looking to expand in urban markets as well as into markets experiencing high population and job growth, he says. “At the same time, retailers are looking to shrink their footprints and design smaller stores to suit these urban locales.”
To read more stories about retail and the reincarnation of traditional malls, click here.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
