Retail sales and retail vacancy is a common topic of conversation in the commercial real estate development community. A combination of the internet, recession, and overbearing of national chains (see Colliers 15q1 report, Walmart Dominates Once Again) has lead to a vacancy rate around the country that needs innovation.
15Q4
So how is the need to increase foot traffic, thus creating more demand for retail space accomplished?
Some of the answers in 2016 need to be a look at developing retail into a consumer interactive environment.
Retailers are integrating with beacons – fine-grained location services technology – to push personalized messages to your customers’ smartphones. Used in conjunction with smartphone apps, retailers are pushing promotions, offers or essential marketing messages straight into the hands of new or returning customers. There is no limit when it comes to ways in which beacon messages can be used.
Other ideas on the horizon:
- Modular retailing.
- Parking, weather and safety alerts with interactive signage.
- POS self checkout stations.
- Quick service restaurants
Another concept coined "Collective Experience" is also being experimented with. Check out Daily tous les jours, for examples of this trend. They are building store concepts that bring a daily collective experience to shoppers of all ages.
Where to next?
The next evolution of retail is happening now. The key is a blending of entertainment, consumer experience and customer service not found on the web. Every sector of retail will adapt differently to these changes but the outcome will be extremely thrilling to participate in.
From Reuters:
U.S. holiday sales expected to rise 2.8 percent in 2015: RetailNext
(Reuters) U.S. holiday sales are expected to rise a modest 2.8 percent in 2015, as a sluggish economic recovery is likely to weigh on consumer spending, analytic firm RetailNext said on Friday.
The company, which tracks large U.S. retailers and specialty stores, also expects foot traffic to drop 8.1 percent during November and December from a year ago.
However, shoppers are likely to spend slightly more on average than a year earlier, during the most profitable season for retailers. Some stores make about one-third of their annual profits in the last two months of the year.
Last week, the National Retail Federation estimated a 3.7 percent rise in holiday sales, slightly less than last year, as U.S. consumers remain concerned about a possible government shutdown, slow job creation and income growth.
Analysts have also forecast slower retail growth this holiday season, reflecting worries about turmoil in the financial markets as well as the stagnant economy.
Market research firm NPD forecast that holiday shopping could show the slowest year-on-year growth since 2009. Consulting firm AlixPartners said it expected 2.8 percent to 3.4 percent growth, down from 4.4 percent in the 2014 holiday season.
(Reporting by Nandita Bose in Chicago; Editing by Richard Chang)