JLL Panel Breakfast Talks AI, New Innovative Concepts
JLL research shows that 37.3% of shoppers expect to see new and innovative retailers in their centers in the next 10 years. We heard from just a few of those innovators about the future of retail, AI and more at the firm’s ICSC RECon press breakfast.
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LAS VEGAS—Technology, demographics and culture are all in a constant state of flux and the changing retail landscape will create new winners and new losers. Those retailers and landlords who anticipate that change have the best chance for success. So said panelists at JLL’s breakfast presentation at ICSC RECon Monday morning.
According JLL’s Greg Maloney, CEO of retail, the consumer is driving retail development. “It is great to know what we are going to do today or two weeks from today, but you have to look at what the department store space will look like in five or 10 years from now.”
Maloney says that the future will not be all about retail and the regional mall will not look the way it does today. There will be innovative retailers, more entertaining and dining and more mixed use space, he explained.
JLL recently surveyed more than 1,500 consumers to find out what really matters to the American shopper. What they discovered was that all the magic mirrors or robot sales clerks weren’t what mattered most.
“They want skilled customer service, personalization and convenience,” explained James Cook, director of retail research at JLL.
Successful shopping centers will need to incorporate tenants that offer additional experiences outside of selling typical merchandise, Cook explained.
One retailer thinking beyond what used to be a typical lease was JLL guest panelist John Goodman, CEO of Candytopia LLC. His company is essentially a pop up shop that includes a sprawling sanctuary of confectionary bliss, as the company puts it, ending with a marshmellow tsunami.
According to Goodman, the concept works, and nearby restaurants and retailers are taking notice—seeing a huge increase in business when the retailer comes through. Candytopia attracts up to 2200 people per day, Goodman said.
On the personalization front, panelist Matt Alexander, CEO of Neighborhood Goods, explained that Neighborhood, currently in Plano, TX, is a new type of department store, featuring an ever-changing landscape—both by brands, products and concepts. More than that, he says, it is a community.
According to Alexander, a big part of Neighborhood Goods is the ability to personalize the shopper’s experience. At any given time, Neighborhood Goods has over 25 different brands—and their respective products—on display, but can tailor to the specific shopper and demographic thanks to technology. The store has 30 cameras in the room to watch behavior and track shopping habits.
“We are experimenting a lot more with blending spaces. In terms of growth, our next market will be NY,” he says. “We are working on up to another six or so in the next year.”
He adds that Neighborhood is about feeling comfortable and about building a human experience. “When the customer comes in, as much as we design, there is a storytelling of the space to make you feel comfortable. We think about how we can leave you with a positive experience and use technology to help people enjoy their experience.”
Keep checking back for more in the coming week for wall-to-wall coverage surrounding the Las Vegas ICSC RECon show and overall trends in the retail market. Take a look below at stories you might have missed.