SADDLE BROOK, NJ—Shoppers' growing preference for variety and value will drive holiday retail trends for this season, including an even greater proliferation of pop-up stores, the emergence of “pop-up warehouses,” an expansion of mobile commerce and strength in discount retailing, according to a new report from CBRE.
“While online sales will continue to grow, we're going to see an increased integration with bricks and mortar, making physical store locations — which many thought were in danger — an integral component of the ever-changing and dynamic omnichannel retail platform,” says CBRE vice president Steven K. Winters. “Retail success is driven largely by demographics, and New Jersey's status as the most densely populated state ensures that retailers who successfully integrate their brick-and-mortar stores with online and mobile platforms will continue to flourish for the long term.”
CBRE's 2017 U.S. Holiday Trends Guide outlines four trends shaping this season as it unfolds.
Pop-Up Mania
Short-term retail leases – often called pop-up shops – have evolved from a trend last season to a full-blown phenomenon this season. Retailers, and now retail-center owners, favor the flexibility and experimentation allowed by short-term leases, and shoppers appreciate the variety of a shifting roster of stores. Several of the largest US mall owners have designated space in their strongest properties for pop-ups.
More M-Commerce
It's no secret that e-commerce is claiming a growing portion of retail sales. What's less often highlighted is the growth of mobile, or m-commerce; eMarketer forecasts that more than a third of online sales this year will occur on phones and tablets. CBRE expects more widespread use by retailers this year of m-commerce tools for handling customer-service, mobile marketing and facilitating sales.
Dawn of the Discounters
Discount and off-price retailers gained momentum during the 2007 recession, and have sustained it in the years since with a mix of value pricing and treasure-hunt merchandising. CBRE's report predicts that the category will take additional marketshare this season, spurring mid-market retailers to discount their prices to compete.
Warehouse Space, On Demand
The surge of online sales during the holiday season can create instant, short-term demand for warehouse and distribution-center space – potential headache for retailers trying to ensure prompt delivery to customers. New services have emerged to provide a “pop-up warehouse” model in which demand for short-term industrial space in a given market is matched with suppliers. Early results show higher efficiency and lower costs.
“CBRE has identified these trends by examining public and proprietary data, querying our Retail professionals and listening to our clients,” says Brandon Famous, CBRE senior managing director of retail advisory and transaction services, and retail leader, the Americas. “We see these trends as natural steps for retailers striving to perfect their omnichannel operations for selling across all channels and to enhance consumers' experiences in each.”
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
