FROM SHOPPING TO SOCIAL RETAIL’S CONTEMPORARY TRANSFORMATION
If retail spaces don’t keep pace with marketplace trends, they risk being left behind. At that point, fewer options are available for adapting the existing space to its highest, best purpose. GREGG SUTTON, PRINCIPAL
hile news headlines have reported on a ‘retail apocalypse’ and ‘retail meltdown’, the business reality shaping the future of this industry is really about transformation. Consumer spending is increasing and shifting among multiple channels. This, combined with shoppers looking for new experiences on their path to purchase is a clear indication that the retail sector must continue to evolve. “Retail is changing rapidly with transactions accounting for only a small portion of multi-sensory happenings at today’s popular venues,” shares EDSA Principal Gregg Sutton. “With the need for engaging experiences, the challenge is bringing new vitality to locations that historically focused on maximizing product inventory.” This trend has caused many retail landlords and property owners to actively pursue redevelopment and re-concepting of their spaces. Remaining consumer-focused and attracting a diverse mix of businesses (i.e., dining, theatres, bowling alleys, arcades, outdoor concert venues, parks, even family fun parks) now figures prominently into the scene. At the end of 2017, Jones Lang LaSalle Capital (JLL) published a report examining 90 major shopping malls across the US. Their findings suggested that an overwhelming majority of these retail centers were either amid a makeover, had recently completed such an overhaul, or were planning redevelopment. Revamping of common areas was the top investment, but integration of new technology, repurposing of store spaces, and other design expansions also ranked. JLL estimated that since 2014, the malls included in the survey had collectively spent more than $8 billion in renovations, with no signs of slowing any time soon.
25_DESIGN MATTERS
LAKE NONA TOWN CENTER - ORLANDO, FLORIDA
“All responsible property owners that undertake sizable capital improvements do so because the short and long-term cost-benefit is favorable,” asserts Sutton. “If retail spaces don’t keep pace with marketplace trends, they risk being left behind. At that point, fewer options are available for adapting the existing space to its highest, best purpose.” Whether making improvements to infrastructure, building facades, circulation, or overall aesthetics, blending opportunities for social interaction within the retail environment for a new experience is crucial. EDSA Associate Principal Marc Hall, hints at some of the other challenges facing traditional sticks-and-bricks retailers. The first being that an ‘all-at-once’ reformation is a luxury many property owners cannot financially afford. In addition, square footage is being added everywhere in new developments, at the ground floor of apartment towers, and as part of most downtown revitalization projects. “The danger to a traditional mall or shopping center is that a full closure, even if only temporary, may result in the loss of tenants who either cannot or will not wait for a renovation to be completed. As planners, we need to bridge the gap between ‘then’ and ‘now’ in ways that are scalable, yet meaningful to modern consumers.”
FROM SHOPPING TO SOCIAL_26
