Lighting rebate trends include shift toward higher-efficiency LEDs and advanced controls.
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Retailers Still in Growth Mode
There’s no denying that store closings have been much in the news lately as select retailers scale back their portfolio or, in some instances, go completely dark.
But it’s not all bad news. Not by a long shot. (It’s also worth noting that some retailers that closed shop — including Bed Bath & Beyond and Z Gallerie — are now planning a return to brick and mortar.)
The good — and often overlooked — news is that many retailers continue to invest in store growth. Store openings will remain fairly steady this year compared with last, with about 5,800 stores opening nationwide, according to a report by Coresight Research. (Store openings totaled 5,970 in 2024, the highest number of openings since 2012 when Coresight began tracking this data.)
Leading the charge is discount grocer Aldi, which plans to open more than 225 new stores this year as part of its five-year growth plan. The company’s expansion will include a combination of organic growth and converting select Winn-Dixie and Harveys Supermarket stores to the Aldi format.
In addition to its Southeast expansion, Aldi will add to its existing footprint in the Northeast and Midwest, grow its presence in the West with more stores in Southern California and Arizona, and enter new areas, such as Las Vegas.
Here’s a look at some other retailers that recently announced plans to open new stores, update existing ones — or both.
• Sephora: The beauty giant has embarked on one of the largest capital projects in its history, redesigning all its stores across the U.S. and Canada. The majority of the work is expected to be completed within the next five years.
• Walmart Canada: The discounter is making a “landmark” $4.51 billion over the next five years that includes building dozens of stores, including five new supercenters that will open in 2027.
• Kurt Geiger: The UK luxury footwear and accessories brand, which is being acquired by New York-based Steve Madden, is looking to expand its presence in North America, opening 50 stores during the next five years.
• Love’s Travel Stops: The convenience store chain plans to open 20 new stores and update 50 existing locations.
• Pop Mart: With 22 stores in the U.S., the Asian toy and collectibles brand expects to double its fleet by the end of the year, with new stores planned in East Coast and Midwest markets, along with potential flagship store openings in “key urban locations.”
• PayMore: The buy-sell-trade electronics retailer will open 90 new stores this year. The above are only the latest retailers to detail their plans for 2025. Many other companies announced their plans for the year earlier on, including Dollar General (to open 575 stores); Tractor Supply (90); 7-Eleven (125); Boot Barn (60); and Burlington Stores (100). TJX Cos. has a long-term the goal of adding 1,200 stores across its current markets. It opened 56 stores in its third quarter.
Expansion also continues at a record pace in the quick-service and fast-casual restaurant sector. The list of expanding brands is too long to mention, but ranges from drive-thru coffee chain Dutch Bros, which has its sights set on “at least 160” new sites to Shake Shack, which has from 80 to 85 new restaurants on tap for 2025.
Other restaurant chains with ambitious 2025 plans include Freddy’s Frozen Custard & Steakburgers with more than 130 locations in development for the next two years, and Smoothie King, which is forecasting approximately 105 store openings. Paris Baguette expects to open 100 cafes. Meanwhile, Chipotle Mexican Grill continue its torrid growth at home and abroad, projecting 315 to 345 openings.
Marianne Wilson mwilson@chainstoreage.com
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Retail Brands to Watch
By Zachary Russell
Adiverse group of companies that range from an Asian grocer to a prestige beauty retailer are on a list of brands to watch during the next 12 months.
Retail analytics firm Placer.ai has released its annual list of brands that it expects to succeed over the next 12 months. The report highlights 10 brands that exhibit significant potential to grow in 2025 based on their performance in 2024. Here are the seven retail brands on the Placer.ai. list, along with the firm’s insights.
• Ashley Furniture: Home furnishings have seen a dip in demand since the COVID-19 pandemic, but Ashley Furniture has stood out for its attractiveness to younger consumers with lower household incomes. Placer. ai says Ashley’s recent strategy shift to differentiate itself through experiential events, such as live music, workshops, and giveaways, is a compelling approach in the challenging consumer discretionary category. These initiatives not only attract traffic, but also provide valuable insights into customers’ preferences.
• Barnes & Noble: The bookseller is back in force, with stores that are feeling cozier and more local. Even though some locations have downsized, efficiency is up with average visits per square foot increasing during the last three years
In addition to boosting traffic, Barnes & Noble’s “rightsizing” success has also increased longer-stay visits, notes Placer.ai. With a presence in every single state and approximately 600 stores and a growing number of locations, Barnes & Noble is poised to fill the shrinking “third place” space that not home or work.
• Bluemercury: Owned by Macy’s Inc., the beauty merchant is expected to have
a strong year in 2025, with its success lying in its ability to be a retailer, an expert and a spa service provider to consumers.
Data has shown that beauty chains with a service and retail component tend to attract more visitors than those that just specialize in retail offerings, and Bluemercury is no exception. The company also focuses solely on the prestige market and caters to higher income households compared to the broader beauty category.
• H Mart: Asian grocer H Mart operates over 80 stores throughout the U.S., with an assortment that includes traditional Korean, Chinese, and Japanese groceries, as well as prepared foods.
H Mart’s success is based on its appeal to a wide base of customers. Placer.ai data found that the second-most visited H Mart in the nation is in Carrollton, Texas, with an ethnic makeup of customers that is is 39% White, 14% Black, 23% Hispanic or Latino and 20% Asian.
• Nordstrom: Nordstrom is an example of department store success in 2024. The retailer has been able to maintain a strong brand relationship with its shoppers and regain its footing with its store fleet
While the chain has certainly benefited from catering to a more affluent, and less price sensitive, consumer base, it still shines in fostering a shopping experience that stands out. Nordstrom also has captured higher shares of high-value, younger consumer segments, which defies commonly held thoughts about department stores, and was a top visited chain during Black Friday in 2024.
•Sam’s Club: The Walmart-owned warehouse club retailer is leveraging the value and experience it provides to create loyal customers, according to Placer.ai. It also is attracting a newer audience that had
previously been less apt to take advantage of the unique Sam’s Club benefits. Visits to Sam’s Club stores increased notably in all but one month of 2024, outpacing the overall retail sector and superstores alike. In a retail segment where the value of loyalty and owning ‘share of shopping list’ is premium, Sam’s is positioned for for the type of success that builds a foundation of strength for years to come.
• Sprouts Farmers Market: Through 2024, visits to the natural and organic grocer increased an average of 7.2% year-over-year each month, outpacing the wider grocery segment standard by an average of six percentage points.
The coupling of overall (+7.2%) visits and visits per location growth (+1.6%) is driven by the Sprouts’ powerful understanding of who they are and what they bring to the market, says Placer.ai.
The Placer.ai report also includes two fast-casual restaurant brands positioned for success: Mediterranean chain Cava, and Raising Cane’s Chicken Fingers Also marked for success is Life Time, a premium fitness chain that has built a dedicated membership base with club offerings that include yoga, childcare, co-working and personalized fitness programs — and even an option for luxury living just steps away.
Profiles in Leadership: Q&A With Dollar General CEO
Todd Vasos is enthusiastic about company’s future
By Marianne Wilson
Dollar General isn’t letting any grass grow under its feet. Founded in 1939, the discounter has one of the most active real estate programs across retail, with plans to open approximately 575 new stores in the U.S. and up to 15 new stores in Mexico in its current fiscal year.
The retailer also plans to fully remodel approximately 2,000 locations, as well as remodel about 2,250 stores through Project Elevate, a more incremental remodel initiative aimed at mature stores that are not yet old enough to be part of the full remodel pipeline.
At the helm of Dollar General is Todd Vasos, who returned to lead the company in October 2023. He previously served as CEO of Dollar General from 2015 to 2022 during which time the company grew its store base by about 7,000 stores, boosted annual sales revenue by more than 80% and more than doubled its market capitalization to around $58 billion.
Chain Store Age spoke with Vasos about Dollar General and how the 85-year-old company balances its past with its present.
Tell us a little bit about how Dollar General has evolved over the years?
Our business began as a father-and-son wholesale business called J.L. Turner and Son in 1939. In 1955, J.L. Turner and his son, Cal Turner, Sr., pioneered the “dollar store” concept when they opened the first Dollar General in Springfield, Kentucky. Today, Dollar General has more than 20,000 stores nationwide, and our black and yellow signs are popular symbols of value and convenience across the country.
For more than 85 years, we’ve proudly served customers in communities big
and small, across rural, suburban and metropolitan locations. While much has changed since our humble beginnings in 1939, Dollar General has never lost focus of supporting our employees and serving our customers and communities across the country as their neighborhood general store.
For our employees, we continue to create new jobs and opportunities for personal and professional development and, ultimately, career advancement with a purpose-driven company. Our employees are at the heart of our company, and we are incredibly proud of the positive impact so many of our employees have on their local communities by living our mission of Serving Others.
Providing meaningful value to our customers continues to be a top priority, as we understand millions of Americans rely on us to help stretch their budget. We have a multifaceted approach to deliver that value including everyday low prices on national and private brands, as well as offering approximately 2,000 items at or below $1 every day and much more.
We are constantly looking for ways to better serve our customers with the items they want and need. As 47 million people in the U.S. are food insecure, one of our top priorities is to ensure the communities we call home have access to fresh, affordable and convenient food options.
In addition to fresh produce offerings at approximately 6,500 stores, all DG stores offer the components of a nutritious meal including proteins, grains, dairy, frozen and canned vegetables, canned fruits and more.
How would you describe DG’s culture? Has it changed over the years?
At DG, our mission of serving others is — and has been — the cornerstone of
our culture and provides a strong foundation for future success.
How does DG keep up with the increasing pace of business and consumer behaviors?
With approximately 75% of Americans living within five miles of a DG, we are uniquely positioned to serve customers across the country by providing convenient access to affordable essentials. No one knows our core customers better than we do, and we work continuously to ensure we meet their evolving needs.
Driving our customer-centric model are consumer insights that help us refine our merchandising assortment and increase access to the everyday items our customers need and want, from health and beauty products to food options.
What role does digital technology play in the business?
We also utilizes digital technology to extend its reach and engagement with consumers while helping them save even more on their everyday essentials. Shoppers can view weekly ads, surface and clip digital coupons, earn DG Cash Back, create shopping lists and calculate their basket all within the DG app and website.
Looking ahead, what are you most excited about when it comes to DG’s future?
We continue to be enthusiastic about our future and understand that millions of Americans rely on us to help stretchtheir budgets and provide nearby access to the items they need most in theirhomes.
Store Design
20 elements that have stood the test even as they evolve to keep pace with emerging trends
By Connie Robbins Gentry
During the last century, Chain Store Age has consistently identified emerging store designs and highlighted retailers that showcase best-in-class iterations and innovations.
In celebration of CSA’s centennial year of publication and its 61st annual SPECS Show (the industry’s leading conference for store planning and facilities professionals), we look at 20 design elements that have stood the test of time and are evolving to keep pace with retail and consumer trends.
Across a career that spans four decades, Diane Rambo, senior VP, creative, JLL, noted she has seen trends that, she is happy to say, have resurrected themselves while accommodating evolving needs and tastes.
“One that is near and dear to my heart is adaptive reuse,” Rambo said. “it’s been around forever, but particularly in the ‘60s and ‘70s, we saw a lot of adaptive reuse.”
There was a time when adaptive reuse failed to appreciate the integrity of the original design and the reinvention of space often lost the style that had made it distinctive. But in recent years, Rambo has seen a resurgence of adaptive reuse in a way that embraces historical features — while adding a new eye toward sustainability
Historical elements have become “a much sought-after piece,” Rambo said, pointing out the Crate & Barrel store in New York City’s Flatiron District, which features dramatic architectural columns.
“You feel like you’re walking into an incredible structure that is old and industrial, and yet it feels very new and fresh,” she explained. “Sustainable design involves repurposing existing buildings for new functions, basically polishing and reworking existing spaces.”
The rapid pace of change across all sectors of retailing also has operators looking for nimble and lightweight approaches to materials.
The reuse of existing retail spaces has always posed both challenges and opportunities, so footprint flexing is also a longstanding and critical element of store design. Adaptive layouts allow retailers to transform their spaces according to seasonal changes, new product launches, trends and also inherited spaces.
Although nearly everyone likes a good maximalist space, the purity of a more distilled aesthetic — an open, cleaner space — is something that Paul Wolski, senior VP, Miller Zell, sees trending, noted.
As retailers gravitate to leaner footprints, Wolski leans toward anything that allows for more flexibility, such as moveable walls or fixtures that can reset a room.
“If you’re dealt a certain type of floor plan, you can re-create the space to zone it differently,” he said.
The rapid pace of change across all sectors of retailing also has operators looking for nimble and lightweight approaches to materials. It’s a concept that is likely to gain even more popularity going forward.
“We’ve been seeing a trend that we’re calling DIY chic,” Wolski said. “It’s something where retailers are deliberately opting for materials that, by their very nature, seem somewhat temporary and are designed to enable easy switch outs.”
The lines are also blurring between indoor spaces and outdoors, a concept that JLL’s Rambo describes as an overall “connectedness to nature.” It might seem new, but it isn’t. Instead, it hearkens back to the plant-scaping found throughout shopping centers, malls and offices during the development boom of the 1970s to early 2000s.
“What we’re seeing now is the use of patterns and shapes that are found in nature,” Rambo said. “It’s the materiality of nature, and it has has positive effects
on people’s mental and emotional well-being. It makes consumers relax and want to spend time in the space.”
20 Key Design Elements
EXPERIENCES
Retail stores are all about the experience, and the focus has expanded into providing neuro-aesthetic sensory experiences. Neuro-aesthetics actually change the way shoppers react in the moment.
“It’s a very tactile approach to design,” said Jamie Cornelius, executive creative director, ChangeUp. “It’s how we think about all the senses — the sights, the sounds, the smells and everything that evokes emotion — and how all of that comes to play.”
Good design is also about what isn’t in the space, and the days of over-crowded, cluttered floorspace are waning.
“A big trend that I’ve seen is opening sight lines and creating literal white space,” Cornelius said.
The concept is something most retailers understand, so initiating the conversation has gotten easier – but when it comes time to edit merchandising to make room for white space, that’s when the difficult decisions come to bear, she added.
“Having too much product actually turns people off,” Cornelius said. Increasingly, effective design calls for SKU simplicity, knowing what you stand for and the key moments you need to deliver on, she explained.
DISPLAYS
One of those key moments to deliver starts on the street: Even before consumers enter the store, window displays present the initial opportunity to engage and intrigue shoppers.
Melissa Gonzalez, principal and advising founder of MG2, noted that window displays have evolved and been enhanced through the use of technology, becoming “interactive elements” in themselves.
“Retailers are being a lot more creative with the storytelling they’re doing in the window displays,” she said, adding that some windows are now designed for an Instagram moment or a TikTok share. Flooring is another way that retailers “guide the journey” for their customers, according to Gonzalez. There are the obvious functional considerations to flooring, but equally important is the aesthetic aspect — choosing the right woods, the right colors, the right patterns.
“And when we think about how we’re going to guide the customer or draw somebody into the store, the ceiling is a huge aspect of that,” she added. “There’s just so many different things you could set with the type of ceiling installation that you choose.”
Among the key design elements, lighting is pivotal.
“It’s the opportunity of emotions that lighting can evoke and what it could further facilitate depending on what the brand is looking to deliver,” Gonzalez said. “In Apple stores, for example, the lighting is bright and uniform. It’s inviting, clean and fits with the ethos of Apple.”
At Miller Zell, Wolski is seeing lighting solutions “skew” toward a more utilitarian approach, a trend he finds interesting as it adopts a more practical, “unfussy” use of materials.
The use of color plays synergistically with lighting and, essentially, all of the other design elements. From her vision across JLL’s portfolio of retail, hospitality, office and residential properties, Rambo called out the use of color drenching and pattern drenching as one of the more interesting and dramatic trendsetting elements.
“When every surface in the room ceiling, trim, walls — all are the same color, you really start to pay attention to the textures and the volume of the space,” Rambo said.
From a materiality standpoint, MG2’s Gonzalez perceives a similar use of color, with retailers “leaning into big commitments to singular palettes that are more layered and dynamic … kind of monochromatic but not minimalist.”
And then there are enduring architectural shapes and forms that define and distinguish spaces. Gonzalez puts arches on that list.
“Arches still show up as an element that brands want to incorporate,” she said. “Arches are inviting and signify threshold moments and demarcations. There’s a ceremonial aspect to [the space] when you see those shapes and it enhances the elegance and appeal.”
Another mainstay for apparel retailers that figures into the design equation are fitting rooms. What’s trending in Gonzalez’ book are bigger fitting rooms, better lighting and other sensorial aspects such as music and scent to create the perfect vibe.
Also, expect to see more more brands integrating technology in the fitting room, with consumers being able to see items in the store inventory that can be paired with what they’re trying on, Gonzalez predicted.
As generations transition and retailers work to attract more Gen Zers and Alphas [generation born between 2010 and 2024], without compromising their millennial,
Gen X and boomer relationships, a challenge that remains constant across the ages is creating designs that bridge the generation gaps.
ChangeUp recently compiled a report debunking myths that are thought to be generational truths. Its research showed that half of Gen Zers feel shopping in a physical store is stressful; almost twothirds (61%) of millennials say a store’s design impacts their perception of product quality; and only a third of Gen Xers would tolerate a poor store experience to save money.
Among boomers, who’ve spent most of their lives shopping brick and mortar stores, only a little more than a quarter (29%) say retail stores inspire them.
“Looking at the younger generation, we know they care more about what a brand stands for beyond just the merchandise that they carry,” Cornelius said. “That’s one piece of it, and we are always thinking about how social media plays within the store and the shopping experience.”
No matter the demographics, personalization of the shopping experience influences every consumer.
“I think another huge trend is attention to detail, the realization that little things matter,” said Wolski, who added that Miller Zell is finding ways of creating visual brand language through more subtle detailing.
“Wall coverings, textiles, upholstery, artwork — all of these little details that customers are paying attention to, and with
brands competing for customer loyalty, all the little details that customers notice — coverings, textiles, upholstery and artwork — matter.”
Localization dovetails with personalization and remains one of the most critical design differentiators. ChangeUp’s Cornelius said there’s always a conversation with the firm’s retail clients around localization and it goes beyond showing the name of the city on the wall.
“There need to be real connections,” Cornelius said.
Localization needs to reflect the depth of the retailer’s commitment to the local community, according to Cornelius, and it’s being done in numerous ways from supporting local charities, schools or athletics to showcasing local artists or first responders as retailers seek ways to make each store convey a sense of local engagement.
Eye-catching, easy-to-read signage is another important design element, calling attention to merchandise and helping shoppers navigate the space. And similar to other elements, signage should align with — and help to convey — a retailer’s overall brand identity.
Design elements should work together to convey a brand’s ethos and values. The overall store design should convey what the brand stands for, because, ultimately, that’s what connects with customers. It should, in the end, tell the brand’s story.
Connie Gentry is a business writer based in North Carolina.
ADVANCE DOCK LIFTS ARE
Restroom Design Evolution
With cleanliness a top priority of end users, restrooms in retail stores and restaurants are increasingly touchless and, in some instances, more private. Total Restroom’s Scott Krueger spoke with Chain Store Age about restroom trends and what’s coming next.
What is the most common mistake that retailers make when planning for restrooms?
A common oversight actually presents a great opportunity for retailers. By limiting their restroom design to only the set of products specified by the architect, retailers face increased costs and delays, as some specified items may have longer lead times, become obsolete, or be priced higher than direct replacements from other manufacturers.
Once we finalize the optimal restroom package with a retailer, we work directly with their procurement teams and their contractors to ensure these exact products get installed, resulting in a unified restroom experience across all locations.
We recently collaborated with a nationwide brand that originally opted for toilet flush valves from one company and urinal flush valves from another. They were pleasantly surprised by the cost savings of consolidating both valve types under a single manufacturer.
Since restroom users don’t exhibit brand loyalty, having flexibility in product choices can lead to substantial opportunities. When partnering with a national brand, our initial step is often to provide product insights, enabling the retailer to confidently advance with their restroom projects.
What are some specific product trends in the restroom?
In addition to implementing a complete touchless restroom, we’re seeing increased interest in two areas. We’re seeing a significant movement towards offering
additional privacy for bathroom stalls. The major manufacturers have created extra height partitions that provide more screening, and continuous mounting brackets and angled door edges that further reduce or eliminate site lines.
We also see that the “connected” restroom has been generating interest. While the technology is still in the earlier phases, it will eventually provide facility teams with real-time data to ensure that flush valves are operational, faucets are working, and soap dispensers are stocked.
What are some of the most common aggravations customers have with retail restrooms?
Bradley Corporation, a top restroom product manufacturer, releases a “Healthy Handwashing Survey” every year. One item on their survey asked about frustrations, and 68% of respondents pointed to water collecting on the floor, with 50% saying they would choose not to use such a restroom.
When talking with restroom owners, we like to point to the “handwashing triangle” -- sink, drying method, waste receptacle -- as an area to consider thoughtfully. Dragging water to a back wall to get to a hand dryer will always cause a problem for other users. Additional frustrations include empty and poorly operating dispensers.
How can Total Restroom help retailers respond to customers’ expectations of restrooms?
Our experts can make the most significant impact on the product selection phase of the project. By working with the design and facilities teams, we can offer valuable insight that will impact your construction schedule and customer experiences.
When the architect specifies a product that consistently carries long lead times from one manufacturer, we can help
identify a direct replacement that will keep the construction schedule on track. When the facilities team suggests cheap plastic dispensers provided for free from the paper product suppliers, we can offer low-cost dispensers that work within the design and deliver the reliability that customers expect.
What services does Total Restroom offer?
Total Restroom works directly with brands and their contractors to provide restroom packages, repair parts, and replenishments through a streamlined purchasing and delivery process. We’re there from design through delivery, helping your team finish the job on time and on budget. We offer detailed material sourcing support and advanced logistics management for all your locations.
How does the company differentiate itself in the marketplace?
Total Restroom stands out in two key ways. First, we offer exceptional expertise in restroom design and logistics, drawing on our experience serving over 100,000 clients, including global corporations, national retailers, government agencies, and small businesses. As a trusted material sourcing partner, we optimize layouts, select the right products, and manage logistics across multiple locations.
Second, our extensive network of manufacturers allows us to provide tailored solutions that meet the unique needs of each project, ensuring our recommendations align with your requirements for the best possible outcomes.
Scott Krueger is the Vice President of Total Restroom
Lighting Rebate Trends
Rebates strongest for technologies that save the most energy
By Marianne Wilson
Lighting rebates remain a win-win solution for retailers looking to reduce some of the initial costs involved in updating existing lighting to more energy-efficient solutions and installing such solutions in new spaces. While programs have evolved to adapt to current market conditions, commercial lighting rebates are still as strong ever and continue to be an important tool for improving the payback of lighting upgrades, according to BriteSwitch. (The Princeton, N.J.-based company helps retailers and other businesses find and take advantage of lighting rebate/incentive programs available across the U.S. and Canada.)
Currently, 77% of the U.S. is covered by an active incentive program for lighting, which is consistent with past years and just shy of the all-time high of 79%. But not all areas are equal. California, Texas, and Florida — the three most populous states — all show more than 75% coverage in the state.
Rebate Amounts Increase — Modestly
Unfortunately, while programs may technically be available in those areas, they are highly restrictive and only allow certain project types, noted BriteSwitch. For example, prescriptive rebates from many of the major utilities in California have been unavailable for years. Instead, they prefer to encourage energy efficiency through legislation.
In 2025, there hasn’t been any major shift in coverage, but many programs tweaked their rules and incentive amounts.
Additionally, we can expect some adjustments throughout the year. In 2024, BriteSwitch recorded nearly 250 changes over the course of the year in response to shifting energy savings targets and funding allocations.
Here is an update of current lighting rebate trends from BriteSwitch:
In the early days of LEDs, the rebate amounts dropped by 10-20% each year. But the trend has now plateaued and 2025 is the fifth straight year where incentive amounts for LEDs have stayed relatively flat, with a modest 3% increase across all LED product categories.
Rebates are the strongest for lighting technologies that save the most energy. Fixtures that are replacing HID lamps, such as outdoor pole lights, wall packs and high bays, still have the highest incentives
Across North America, most rebates are still written as a set dollar amount per fixture rather than an incentive based on watts or kilowatt hours saved. This structure is more straightforward and easy to implement in prescriptive and midstream (instant) programs.
In the future, however, programs may need to move towards incentivizing actual energy saved if LED-to-LED upgrades become more popular.
Lighting Controls Get More Prominent Role
An increased focus on lighting controls is a major trend in 2025. Historically,
rebates for controls were available, but buried deep within program manuals, making them easy to overlook. That’s starting to change.
More programs are now listing controlled and non-controlled fixture incentives in the same section, making it easier for contractors to promote advanced lighting solutions. Still, this shift is just starting. While nearly every rebate program offers incentives for controls, only 20% of them have adopted this structure.
Bonuses Programs Available
There were a large number of bonus programs — initiatives that can offer an additional 10% to 100% of the rebates during a limited time period — throughout 2023 and 2024.
Historically, these programs appeared in the last few months of a year, but bonuses are now appearing throughout the year as rebate providers struggle to meet their energy savings goals and increase participation.
In 2025, however, 5% of rebate programs started the year with bonus incentives already in place — with more likely to come as the year progresses. It’s important to take note of where these additional incentives are offered, as they can instantly improve the payback of a lighting upgrade and give a good reason to reexamine any potential project that didn’t go through
For those who work on filing rebates, digital applications and online portals have streamlined the rebate process. The online portals reduce paperwork, eliminate the need to mail physical applications, make it easier to get status updates on every outstanding project and also seem to offer improved pre-approval and payment times as well.
Looking at all its projects in 2024, BriteSwitch said the average pre-approval time was two weeks (down from four to five weeks in previous years). Rebate payment took about two months.
However, the shift to online applications has introduced some drawbacks. One is that the systems are often cumbersome to use and take longer to fill out than PDF applications.
Another drawback is that some programs now rely on online portals rather than publish an easy-to-read list of the possible incentives. That means that to estimate a rebate, you need to log in and complete the forms to see the amount, which is time-consuming for an estimate. (Rebate databases such as BriteSwitch’s RebatePro for Lighting still list the incentive amounts individually to speed up rebate estimates.
Another hurdle to rebate processing is the use of approved vendor lists. In 2025, 17% of rebate programs require contractors or distributors to be registered as trade allies. It’s critical to look into this topic before planning any lighting project in these areas.
Commercial lighting rebates remain a key driver for energy efficiency projects. The focus may be shifting toward higher-efficiency LEDs and advanced controls, but the opportunities for cost savings are still significant.
For any lighting project you are working on in 2025, you should research to see what incentives might be available as early as possible to make sure you don’t miss out, advised BriteSwitch.
For more on 2025 rebates, go to https://briteswitch.com/news/2025-lighting-rebate-trends. php.
Smart Buildings Make Good Business Sense
Investments in smart buildings are key for companies looking to enhancesustainability and security — and save money.
That’s according to a report from Johnson Controls in which nearly two-thirds of respondents said smart buildings are important for reducingcosts, accelerating sustainability initiatives and driving business growth.
In key findings, only 13% of commercial real estate and retail leaders saidthey have fully integrated building systems, leading to inefficiencies andincreased risks. They reported that a lack of integrated data and insight isreducing operating efficiencies (62%), reducing customer loyalty (59%)and increasing regulatory penalties (57%).
Also, 75% of commercial real estate and retail leaders said smart buildingsare important to accelerating digital transformation efforts.
Other key findings from Johnson Control’s “Cracking The Smart BuildingsCode: A Spotlight On Retail And Commercial Real Estate” report are below.
• Competitive Differentiator: Investing in smart builadings is a competitivedifferentiator. Smart buildings not only help commercial real estate andretail leaders attain sustainable, secure and efficient outcomes, they also competitively differentiate their facilities in the market.
• Vital Insights: Building data is crucial for decision-making across variousdepartments, including security, sustainability and facilities management, and many leaders recognize the current risks they face by having limited data.
“Smart buildings are not just a trend; there is growing recognition they area necessity for modern commercial real estate,” said Vijay Sankaran, VPand chief technology officer, Johnson Controls. “This report highlights the urgent need for integrated systems and expert partners to navigate the complexities of today’s commercial real estate market to achieve long-term success.”
Facilities Management: The IoT advantage
Benefits include smarter maintenance, lower costs and seamless compliance
By Matt Murphy
The Internet of Things (IoT) has become a game-changer for companies seeking to enhance asset maintenance, ensure compliance and manage costs effectively.
Once considered too costly or complex, IoT hardware and sensors are now more accessible, featuring long battery life, enhanced capabilities and compact designs. These advancements transform maintenance strategies from reactive to proactive, enabling organizations to predict equipment issues before they occur and optimize maintenance schedules. By integrating IoT with enterprise-grade remote monitoring software, businesses can achieve predictive maintenance without the financial burden of expensive hardware. This shift allows organizations to streamline operations, ensure effortless compliance and maintain cost control — turning once-daunting challenges into valuable opportunities.
Next-Gen IoT Sensors
IoT has evolved significantly, eliminating previous cost and complexity barriers that once limited its adoption. Modern IoT sensors are now more affordable, making them accessible to organizations of all sizes.
Additionally, these sensors are designed to be compact and wireless, simplifying installation without requiring extensive infrastructure changes. One of the most significant advancements is battery longevity, with many sensors now lasting years, reducing maintenance efforts and ensuring reliable long-term performance These innovations allow organizations to monitor assets in real time without the financial and logistical burdens of traditional systems.
Beyond affordability and ease of installation, the latest IoT sensors are driving efficiency and cost savings across industries. Wireless technology eliminates the need for expensive wiring, contributing to the rapid growth of the global wireless sensor market.
IoT-enabled predictive maintenance can reduce also maintenance costs, further reinforcing its value. As a result, businesses can transition from reactive to proactive asset management, leveraging IoT’s advancements to optimize operations while minimizing costs.
From Reactive to Predictive Maintenance
Traditional maintenance is reactive, addressing issues only after they occur, leading to costly downtime and repairs. IoT technology enables a proactive approach by using real-time sensor data to monitor asset conditions, predict failures and optimize maintenance schedules.
This shift reduces unnecessary servicing, lowers costs, and extends equipment lifespan by ensuring timely care. By preventing breakdowns before they happen, organizations can enhance efficiency, minimize disruptions, and maximize productivity, making maintenance smarter and more cost-effective.
Effortless Compliance
IoT technology simplifies regulatory compliance by automating data collection, monitoring, and reporting. Real-time sensors eliminate manual record-keeping, reducing errors and ensuring accurate, upto-date information.
Customizable alerts notify organizations when compliance thresholds are nearing, allowing for proactive action, while automated reporting tools generate compliance documents effortlessly. This streamlined approach saves time, minimizes risk, and ensures businesses maintain confidence in their regulatory standing.
Refrigeration Maintenance
In the refrigeration industry, where maintaining optimal temperature is critical to preserving food and preventing loss, IoT technology is transforming maintenance practices.
With the increasing complexity of
refrigeration systems and the growing number of connected devices, the risk of breakdowns is higher than ever. IoT sensors continuously monitor the conditions of refrigeration units, providing real-time data on potential issues such as temperature fluctuations, refrigerant leaks, energy spikes, or malfunctioning parts.
Beyond predicting failures, IoT tools enable organizations to respond quickly to emerging issues. When anomalies are detected, such as a temperature spike or a refrigerant leak, work orders can be automatically triggered, ensuring that technicians are dispatched immediately. With advanced tracking and remote capabilities, businesses can direct technicians to the exact location of the problem, minimizing downtime and mitigating the risk of spoilage. This is especially important given the combined environmental and economic impact of refrigerant leaks, energy spikes and food waste.
IoT technology helps ensure that refrigeration systems are repaired swiftly — protecting both the bottom line and the environment.
BENEFITS
By integrating IoT sensors with powerful monitoring software, companies can transition to proactive and predictive asset maintenance, improving operational efficiency while ensuring compliance.
IoT-enabled solutions provide real-time asset monitoring, predictive analytics to forecast potential issues and automated data collection for compliance and reporting. Also, remote control capabilities allow for quick responses to issues, reducing the need for on-site personnelWith these tools, businesses can optimize operations, minimize downtime and stay ahead of maintenance and compliance challenges, ushering in a new era of smarter, more cost-effective asset management.
Matt Murphy is global IoT and energy senior solutions architect at Accruent.
Footwear brand Skechers opened its first “performance store,” at West Edmonton Mall in Alberta, Canada. At 7,500-plus sq. ft., the store has an experiential format that includes half-size pickleball and basketball courts where consumers can try out the brand’s latest performance-oriented products. The expansive sales floor is surrounded by state-of-the-art digital LED screens. Skechers plans to open 180 to 200 company-owned stores in 2025. … In one of the largest capital projects in its history, Sephora is redesigning all of its stores across the U.S. The majority of the work, which includes both major revamps and refreshes, will be done within the next five years. … Skims, the $4 billion shapewear brand co-founded by Kim Kardashian, made its brick-and-mortar debut in New York City, opening a 6,570-sq.-ft., four-level flagship near Rockefeller Center. Designed by Rafael de Cárdenas, Ltd with the brand’s monochromatic color palette, the store features a 15-foot Vanessa Beecroft nude sculpture in its front window. … U.K.-based luxury footwear and accessories brand Kurt Geiger is planning to expand its presence in North America, opening 50 stores during the next five years. …Bed Bath & Beyond is expected to return to physical retailing with a store later this year via parent company Beyond’s deal with home décor retailer Kirkland’s RH is leaning into its residential design services offering.
The luxury home furnishings retailer opened RH Interior Design, the first standalone destination for its multi-disciplinary design services. Located in the El Paseo shopping district of Palm Desert, Calif., the space is designed as an immersive destination for collaboration and ideation on projects of any scope, indoors or outdoors. … L.L. Bean is offering customers a unique shopping experience while it completes the overhaul of its flagship in Freeport, Maine, which attracts 3 million-plus visitors annually. The iconic outdoor apparel and gear retailer has opened an interim store, billed as “Camp L.L. Bean,” that’s designed to look like a massive camping tent on the outside.
Skechers’ performance store includes half-size pickleball and basketball courts. (Photo: Business Wire)
Transforming Customer Engagement
Phygital experiences provide a unified experience across in-store, online touchpoints
By Mary Baum
Today, the line between physical and digital experiences has blurred. Enter phygital experiences — a seamless blend of physical and digital interactions designed to enhance customer engagement.
This concept has become more than just a trend — it’s a cornerstone of modern customer experience strategies across industries. Retailers are leveraging phygital solutions to create richer, more personalized interactions that meet customers where they are, both online and offline.
Hybrid Approach
Phygital experiences combine the tactile, human elements of physical environments with the convenience and efficiency of digital technology. The goal is to provide a consistent, unified experience across all customer touchpoints.
For retailers, this might mean an interactive kiosk in a retail store that helps customers locate products, a mobile app that integrates real-time inventory updates, or AI-powered chatbots that provide instore assistance.
This hybrid approach ensures that retailers can cater to the preferences of tech-savvy customers without alienating those who value in-person interactions. Moving ahead, this balance will be more critical than ever, as customer expectations continue to grow alongside technology advancements.
The rise of phygital experiences is driven by several key factors that have gained momentum over recent years.
This includes:
• Evolving Customer Expectations
Today’s customers expect convenience, personalization and seamless service. They want to switch between online and offline channels effortlessly.
For example, a shopper might start browsing products online, visit a store to try them and then complete the purchase through an app. Retailers that don’t offer this kind of fluid experience risk losing customers to competitors that do.
Additionally, features such as virtual tryons, mobile self-checkout and AI-driven recommendations enhance the customer experience and drive conversions.
• Advancements in Technology
Technologies such as AI, IoT and augmented reality (AR) have reached new levels of sophistication, making phygital interactions more engaging and intuitive.
For instance, AR mirrors in stores now allow customers to try on outfits virtually. Apps can place a piece of furniture virtually anywhere, so the user can see how it looks in their specific space. The roadblock of not seeing an item on yourself or within your space is nonexistent.
• Post-Pandemic Consumer Behavior
The pandemic reshaped consumer habits, with many people growing comfortable with digital-first solutions. However, as physical spaces regain importance in 2025, the focus has shifted to creating hybrid experiences that combine the best of both worlds.
Contactless shopping, BOPIS (buy online, pick up in-store), and digital loyalty programs have become essential in providing safe, seamless and efficient shopping experiences.
• Increased Competition
Retailers are competing fiercely to capture customer attention. Phygital strategies enable brands to differentiate themselves by offering unique, memorable experiences that build loyalty.
Personalized offers sent via push notifications when a customer enters a store, smart shelves that display dynamic pricing and gamified shopping experiences that reward engagement are just a few examples of how retailers are innovating.
Retailers are using interactive displays, AR fitting rooms and mobile checkout systems to enhance the in-store experience. Click-and-collect services, where customers purchase online and pick up in-store, have also become standard.
• The Growing Role of Data and Analytics
Retailers are increasingly leveraging data and analytics to enhance phygital experiences. By analyzing customer behavior across digital and physical touchpoints, brands can deliver hyper-personalized interactions that anticipate needs and preferences.
Machine learning and AI-driven insights enable businesses to optimize inventory management, create tailored marketing campaigns, and refine in-store experiences based on real-time data. This data-centric approach not only enhances customer satisfaction but also drives operational efficiency and revenue growth
What’s Ahead?
Looking ahead, phygital experiences are likely to evolve further, driven by innovations such as the metaverse, wearable tech and advanced AI. For retailers, the focus will shift toward hyper-personalization, using data and technology to create unique, tailored experiences for each customer.
Phygital experiences are no longer optional — such experiences are essential for retailers that want to stay competitive. However, success in this space requires more than just adopting new technology. Companies must ensure their phygital strategies align with their brand identity and truly address customer needs. A poorly implemented solution can feel gimmicky and alienate customers rather than engaging them.
By merging the physical and digital worlds, retailers can provide the seamless, personalized interactions that today’s customers demand. For brands willing to invest in creating meaningful phygital experiences, the rewards are clear: stronger customer loyalty, increased engagement and a distinct competitive edge.
The future is phygital—are you ready to embrace it?
Mary Baum is director of digital marketing for Cella by Randstad Digital.
Chain Store Age’s annual SPECS Show
MARCH 9-11
GAYLORD TEXAN | GRAPEVINE, TX
SPECS is the premier event for store planning, design, construction and facilities professionals. Now in its 61st year, SPECS offers targeted educational sessions, dynamic keynotes, a best-in-class exhibitor floor and networking opportunities.
INSIDE:
SPECS Agenda At-A-Glance
Exhibitor Listing
SUNDAY, MARCH 9
AGENDA AT-A-GLANCE
1:00
2:30
3:00
3:00
4:15
MONDAY,
8:00
Center/Exhibit Hall Open Lunch (12:00 PM - 1:00 PM) & Refreshments Served
TUESDAY, MARCH 11
7:30 AM - 8:00 AM Networking Breakfast
AGENDA AT-A-GLANCE
8:00 AM - 8:15 AM SPECS Retail’s Top Women in Store Development and Facilities
8:15 AM - 9:10 AM Keynote Address — Ron Insana, CNBC senior analyst
9:30 AM - 10:45 AM THE MAIN STAGE presentation — Read Hayes, Research Scientist/ Criminologist, Director of the Loss Prevention Research Council (LPRC)
B-C
B-C
10:45 AM - 11:10 AM Face2Face: Retailer/Exhibitor Information Exchange Longhorn Exhibit Hall A
11:15 AM - 1:45 PM Solution Center/Exhibit Hall Open Lunch (12:00 pm - 1:00 pm) & Refreshments Served
2:00 PM - 2:50 PM Net Zero Carbon Building: What You Need to Know Transforming Facilities Maintenance through Digital Innovation Redefining Brick-andMortar Retail Design in a Digital Era Top Retail Center Experiences Connecting the Dots: The Final Chapter in Store Development
3:00 PM - 3:50 PM Staying on Budget: Understanding Build-Out Costs and Planning Appropriately
Sustainable Spaces: What You Need to Know About EnergyEfficient Buildings Rightsizing & Optimizing Store Footprints
3:15 PM - 3:45 PM Exhibitor Wrap-up Meeting
4:00 PM - 4:40 PM THE MAIN STAGE presentation — Dean Lindsay, Business Consultant and Author
Decoding and Optimizing Real Estate Site Selection: Tools, Drivers, and Decision-Making Insights
Strategic Partnering: Qualifying and Building Strong Business Relationships
6:30 PM - 10:00 PM SPECS 2025 Appreciation Party Glass Cactus (on property)
LIST OF EXHIBITORS
Update on 2026 Refrigerant Regulations
Early compliance can reduce long-term costs associated with refrigerant management
By Amrit Robbins
As the January 2026 deadline for the EPA’s AIM Act draws nearer, the grocery retail sector faces a significant shift in how it manages refrigerants. Among other things, the new regulations make “whole system” automatic leak detection (ALD) systems an essential component of compliance (and explicitly requires ALD for appliances that use over 1,500 lbs. of HFC refrigerant)..
For grocery chains and other cold storage operators that rely heavily on refrigeration, the impact is clear: Waiting until the last minute to meet these regulations could lead to operational challenges, rising costs and significant potential fines. On the flip side, acting well in advance not only ensures compliance but presents opportunities for long-term financial benefits and operational improvements. Due to the AIM Act regulation announced in September 2024, the cost of non-compliance with refrigerant regulations has skyrocketed. The EPA’s focus on HFCs has elevated refrigerant management as one of its top enforcement priorities, with penalties reaching up to $57,000 per day for violations.
Retailers that don’t comply could face steep fines, operational disruptions or even court-enforced mandates requiring costly and rigid compliance measures. But beyond avoiding penalties, early action on refrigerant leak management offers a path to improved efficiency and lower operational costs.
With ALD systems, there is a significant financial advantage to be gained by adopting the technology early. The rush to comply closer to the 2026 deadline will likely cause an uptick in demand for ALD installations, driving up costs and extending lead times. The cost of equipment and services may increase as the deadline approaches, and availability could become a major issue.
Those who act sooner will not only avoid inflated pricing but can also benefit from locking in the best providers and
securing installations on a timeline that suits their operational needs, rather than scrambling to meet a regulatory deadline.
Early compliance also reduces the longterm costs associated with refrigerant management. The AIM Act mandates quarterly leak inspections for systems that surpass a 20% leak rate. For many retailers, relying on manual inspections can cost up to $4,000 per store annually, and those inspections only catch leaks after significant refrigerant has been lost.
In contrast, indirect ALD systems monitor the entire refrigeration network continuously, identifying leaks early and preventing them from exceeding the 20% threshold that triggers quarterly inspections, repairs, and additional paperwork. This proactive approach significantly reduces both the likelihood and the cost of non-compliance.
Retailers that invest in indirect ALD now will also see substantial operational
Retailers that don’t comply could face steep fines, operational disruptions or even court-enforced mandates requiring costly and rigid compliance measures
benefits. Refrigerant leaks are notorious for leading to costly emergency repairs, unexpected downtime, and even inventory loss due to cooling failures. By installing ALD systems that monitor the entire refrigeration infrastructure, grocery retailers can detect leaks long before they become major issues, avoiding the ripple effects of system breakdowns, product spoilage, and urgent repairs.
The financial case for indirect ALD becomes even more compelling when considering the sustainability impact. Refrigerants are among the most potent greenhouse gases, and reducing leaks can significantly lower a retailer’s Scope 1 and 2 emissions. For businesses focused on
sustainability goals, cutting refrigerant leaks is one of the most effective strategies to achieve significant reductions in their carbon footprint.
Going Forward
The operational and financial benefits of indirect ALD extend far beyond avoiding fines or meeting a regulatory deadline.
Retailers who install ALD systems will find that their investment pays off in reduced energy consumption, lower refrigerant replacement costs, and fewer emergency repairs.
Additionally, with the rising costs associated with refrigerants, minimizing leaks also protects businesses from the financial volatility of refrigerant prices, which have been steadily increasing due to tighter environmental regulations. Perhaps the greatest advantage for finance managers in acting now is the ability to control the pace and cost of the transition. Retailers who wait until the last minute will face not only higher costs but also potential delays in installation due to limited availability of systems and qualified technicians.
Acting early allows for careful planning, selection of the most cost-effective systems and smooth integration into existing operations—all while avoiding the last-minute scramble and potential disruptions that late adopters will almost certainly face.
The EPA’s AIM Act regulations are a significant development in refrigerant management, but they also present an opportunity for forward-thinking grocery retailers to get ahead of their competitors. By investing in indirect ALD systems now, retailers can avoid the financial and operational pitfalls of non-compliance while unlocking long-term benefits in efficiency, sustainability and cost savings.
Amrit
Robbins is the co-founder of Axiom Cloud.
Spotlight on Parking Lot Paving
First appearances matter to customers — starting in the parking lot. A well-maintained parking lot can contribute to a positive shopping experience even before the customer enters the store.
Chain Store Age spoke with Eric Faggioli of Delaware Valley Paving, which has been providing paving services since 1990, about parking lot management.
How does a retailer know when a pavement needs to be repair or replaced — what signs should they look for?
It depends on your goals. Vehicular and pedestrian traffic safety will be dictated by tripping hazards, settlement and potholes. I’d advise to look for tripping hazards in your cracks and at your transitions by the concrete sidewalk or ADA ramps.
Settlement and potholes create not only obvious tripping hazards, but also dangerous driving conditions.
What enters into the decision to repair or replace?
Oftentimes, replacement is simply dictated by timespan. A typical new asphalt parking lot has a lifespan of 15 to 20 years.
A concrete pavement parking lot, however, should well exceed 20 years. When properly maintained, it should require replacement under proper conditions in 25 years. This is why maintenance of joints, surface (sealant) and line striping are so critical.
Are there environmentally friendly alternatives to asphalt and concrete pavements?
The concrete industry has been much more successful in delivering carbon credits through more efficient production.
We are also now paving with RCC [roller compacted concrete]. This is a more environmentally friendly
low-slump concrete that is placed faster in a thinner application than traditional asphalt and with less reinforcement.
What factors affect the cost of a commercial paving project?
The major cost drivers are material cost and trucking (transportation) costs. Labor and equipment costs are less of total project cost as the project size increases.
Material costs are driven by access to virgin stone, and competition among asphalt and concrete suppliers. Trucking costs are driven by distance from jobsite to supplier. And with a larger project, more production is realized so labor and equipment costs are reduced.
Is one time of the year better than another when it comes to paving?
Seasonality fluctuates regionally across the country. Our season in the Northeast is typically March through November. We can pave year-round south of North Carolina.
From the Rocky Mountains into the Northwest, we see shorter seasons, typically May through October.
Tell us about Delaware Valley and the services it offers.
We offer parking lot maintenance and construction services, and specialize in servicing retail, industrial, multifamily and IOS customers.
Delaware Valley self-performs all trades from excavation and utilities to maintenance of parking lot surfaces across the Northeast. We provide construction services with our team of project managers and superintendents across the country.
Can Delaware Valley help with ADA compliance?
Definitely. ADA reconstruction is something we specialize in. We often work with engineers to design and handle the construction services turnkey and are well educated in compliance codes as well.
How important is maintenance in extending the life of a pavement?
Maintenance of parking lots is critical to maximizing the value of your reconstruction investment. We are strong advocates for asphalt joint sealant, concrete joint sealant, and, where applicable, sealcoat
What should a retailer ask before hiring a commercial paving company?
Several key questions should be addressed, starting with whether the company has licenses required (state and local) to complete the project”
Other questions to ask include:
» Have you completed projects of this type and scale in the past? Review a project list. Reference those customers to use are referrals.
» What quality control measures do you use?How do I ensure I get the proper thickness, compaction, preparation work (grading or tack coat), and finish work?
» What equipment can I expect to see on this site? Ensure the equipment is actually used onsite. Proper equipment is critical to achieving a great outcome.
» Are you self-performing all trades? If not, which ones?
» Who will be my main POC for this project and how long have they been with your company? Will they be onsite? If not, are they in direct communication with the onsite foremen daily?
» What daily communication can I expect to see?
» What close-out documents do you provide?
Eric Faggioli is president of Delaware Valley Paving
TODAY’S TOP REAL ESTATE TECH TOOLS
By Al Urbanski
Sandy Sigal wasn’t a real estate person who found technology, Sandy was a tech person who found real estate.
The co-founder and CEO of the Calabasas, Calif.-based NewMark Merrill Companies--which owns and operates 80-plus open-air shopping centers in California, Colorado, Illinois, and Washington—was not the heir of a family-owned real estate dynasty. He was a personal computer whiz kid during the dawn of the PC who, at the age of 12, was already programming and developing accounting and project management software for local companies.
After graduating college at age 20, Sigal was hired by West Venture Companies, a California-based homebuilder, to computerize their business processes. He ended up as the company’s CEO, left it to start NewMark Merrill, and purchased West Venture’s retail assets, which consisted of 15 centers and four projects under development.
“One of the first great tools we found was Datex, which tracks percentage rent payments for all retail classes and top national retailers,” Sigal said. “We could check that data to see who’s late with rent, who’s paying on time, where rents were below market. That enabled us to do trend analyses when we were looking to buy a center.”
NewMark Merrill subsequently acquired Datex.
ESRI
NewMark Merill was also the first developer to use Placer.ai. Some seven years ago, Placer.ai’s co-founder Noam Ben-Zvi, who’s based in California, paid a visit to Sigal to see if he thought the company’s mobile-based location analytics platform could provide a valuable service to retail real estate developers and expanding retailers. He did, and invited Ben-Zvi to join him at NewMark Merrill’s booth at the next ICSC show to introduce it to attendees.
Today, Placer.ai’s ICSC show booth is twice as big as NewMark Merill’s.
“What’s really great is that tenants now use the same tools that we use, including Placer. Now we are all looking at the same data. We ask a lot more questions, and they’re a lot more smart,” Sigal said. “What tenants do we renew? Who’s strong and who’s weak? We can isolate the locations where they succeed and where they fail.”
Sigal says that the good news about new real estate tech tools is that they give their users very accurate information about what’s really going on. The bad news, he added, is that there are always users who maintain a slight edge.
Following is a review of some of the top real estate tech tools being used by both landlords and tenants in the retail sphere.
For more than 30 years, ESRI has been a chief provider of geographic information systems that provide retailers with distinct data, block by block, of where nearby populations spend their money, how much they spend, and what they buy.
What’s been improved in the company’s GIS over the past five years is an intensification of the clarity and depth of the demographic data it provides to brands about target market groups in specific locations.
“It’s not really mapping that we do now; it’s an infrastructure that lends first-party data, third-party data, and point-of-interest data to reveal key demographic groups and the size of those groups using 3D color graphics,” said Gregg Katz, ESRI’s global industry solutions lead for real estate.
Top retail brands use ESRI’s ArcGIS to research markets, identify new markets for expansion, and plan their marketing at neighborhood
levels. Boots on the ground can use mobile data collection tools to gather property information directly from the field and analyze and share insights across their organizations in real time.
What’s improved in ESRI’s offerings over the past five years is the amount and quality of consumer data that has become available over the past five years.
“The data we’re using now is more layered,” said Katz. “We can look at a specific market and enrich the information to focus on traffic counts, points of interest, and entertainment and dining attractions in the area. It’s easier for retailers to gauge how their presence in a location will sit versus the competition.”
Popular with retail brands is Esri’s Tapestry Segmentation, a tool that helps them identify new locations and fine-tune marketing programs for specific customer bases.
Tapestry classifies U.S. neighborhoods into 14 “LifeMode” groups. The data can provide insight into important consumer variables such as age, education level, willingness to buy or purchase certain products, and economic purchasing power.
“We’re finding answers to retailers’ questions in a very efficient manner today. We started with dots on a map, and today what we have is a storytelling map on which you can turn things on and off to get a full perspective of a market,” Katz observed. “Every retailer’s got a different customer recipe, and the ingredients for that recipe continue to evolve. Our job is to continue creating those new ingredients.”
CBRE RETAIL ANALYTICS
Ten years ago, CBRE acquired Forum Analytics and became the first global real estate services giant to offer machine learning-based data to retailers on national expansion potential, top markets, and shopping zone profiling.
One prime tool from the Forum product lineup that has been relied upon greatly by retail real estate directors is its ShopoGraphics Retail Zones, which quickly serves up center profiles with information that speeds up the targeting process.
Overhead maps outline center locations on Google maps with cogent details that can quickly ID a property as a no-go, a maybe, or a sure thing. One-word center vitality ratings, store counts, and local car traffic levels paint a clear picture of the property--as do nicknames such as “Keep on Truckin” and “Bargain Basement in the ‘Burbs.”
“Where machine-learning works really, really well is in building and defining
these shopping clusters that truly aid expansion targeting,” said Tony Conti, the senior VP of CBRE’s Retail Analytics.
“When users dig deeper into possible new locations,” Conti added, “we’ll give them more detailed information about customers, tenant staffing, key competitors, and more.”
Unlike most other players in the retail analytics industry, CBRE sits on a treasure trove of data that it can glean from the 50-plus mall, mixed-use, lifestyle and grocery-anchored centers it serves as a third-party manager.
CBRE Retail Analytics also offers sales maturity curves at potential centers, customer transfer, cannibalization, and competitors and co-tenants at centers being reviewed.
“A lot of the data used by other players in this business has been commoditized,” said Conti. “We pride ourselves in our analytics.”
JLL’s VISIONARY INSIGHTS GROUP
In 2001, economic geography expert Paul Sill—a one-time researcher in Blockbuster Entertainment’s real estate department--started a company called Forum Analytics that created mapping solutions for businesses powered by modeling and analytics. Forum Analytics has long served as a standard tool used by brands as diverse as McDonald’s, Tiffany & Company, Sephora, Ace Hardware, and Domino’s Pizza.
During the dawn of the AI revolution, Forum Analytics introduced numerous industry-changing platforms--most notably the Strategic Integrated Mapping and Modelling System (SIMMS), Cannibalytics, and Shopographics
Ten years ago, Sill sold Forum Analytics to CBRE and became an adjunct professor of geography at Chicago’s DePaul University. But, last year, he jumped back into the software-as-a-service business to head up of CBRE’s new Visionary Insights Group.
“Tenants now use the same tools that we use. Now we are all looking at the same data. We ask a lot more questions, and they’re a lot more smart.”
- Sandy Sigal, CEO, NewMark Merrill Companies
“We will be making the same case to retail brands we made with Forum Analytics—less is more,” Sill said. “So many solutions on the market are packed with too much information. The real value we will bring to clients is helping them focus on eight to 10 essential variables. It’s one piece of paper. We think that’s a better way. A lot of the solutions available today are just too much data to process.”
Sill spent most of the past year putting his Visionary Insights Group team together. Now the platform is staffed and primed and ready to go to market.
“We will strive to provide clients with patterns and data that will validate boots on the ground,” said Sill. “Finding the best real estate has to be done on both sides of that fence.”
“Our goal at SiteRise was to finally eliminate siloed data across development teams and create a new standard for portfolio management.”
- Dillon Okner, CEO, SiteRise
BUXTON
Buxton, like Esri, has been a mainstay data provider to the retail real estate industry for more than three decades. Unlike many of the newer companies that have come into this space, however, Buxton continues to rely on third-party and sales performance customer data purchased from aggregators, not first-party data that’s been collected by brands they serve.
“There’s so much data available today that it doesn’t require us to get it directly from the brands,” said Buxton’s senior VP of product Phillip Crow. “We collect sales performance data weekover-week and day-over-day.”
Buxton’s location intelligence offerings to brands include analyses on
site selection, location optimization, market optimization, and mapping and reporting.
“Historically, what we do is look at the customers that brands attract at their existing locations and compare them to the types of customers they attract at their lesser-performing locations,” said Crow. “We then dig into those variables to evaluate potential new sites that mirror the ingredients of their best locations.”
Buxton then provides clients with roadmaps—for specific cities or DMAs—that show them how many locations pair up performance-wise with their best existing stores.
“We are using AI to study consumers visiting a brand’s locations based on several different attributes. Once we’ve identified their key attributes, we share the findings with the brand,” said Crow. “We also use this information to venture into the marketing realm, sharing customers’ unique personal information and what they buy.”
“We had the humility to try to understand what we didn’t know about retail real estate, and it’s turned into an ongoing conversation.”
- Ethan Chernofsky, SVP marketing, Placer.ai
JLL’s Paul Sill
Buxton’s Phillip Crow
PLACER.AI
Just six years ago, retail real estate developers and their leasing organizations would put up maps with their malls in the center, overlain with three concentric circles identifying their two-, five-, and 10-mile market areas. The key-customer dartboard. Then Placer.ai showed up.
Using mobile phone data from a sample of three million people nationwide, Placer was able to identify a retail center visitor’s demographic information, shopping preferences, and ZIP codes. It could analyze their visitation trends at local, state, and national levels to compare center and store performance versus their competitors, informing the growth strategies of both retailers and developers. It could track changes in customer behavior following promotional events and store remodelings. Placer.ai color-mapping could also identify organically shaped zones where a mall’s key customers lived, many of them snaking well outside of the perfectly round circles on developers’ maps. Their dartboards were
SiteRise
Are you a project manager for a big national brand retail chain with several new locations going up in five or six regions and regional managers sending you weekly updates on leases and project timelines via local or cloud spreadsheets? And are you climbing up a wall right now?
Dillon Okner, a former retail construction manager at Apple, was just like you, shuffling weekly reports filed individually like playing cards and praying that he would be able to close his deliverables gaps efficiently and on schedule. Rarely did any full houses turn up.
Today, Okner is a founding partner of SiteRise, an online platform used by all of a brand’s regional construction managers, who log drawings, leases, documents, and timeline updates in real time-- eliminating siloed data reporting across development teams and giving them instant updates on how projects are progressing cross-region.
“At Apple, we had five real estate
Placer.ai’s Ethan Chernofsky
directors, each one with his or her own file format for how they reported every week,” Okner said. “Our goal at SiteRise was to finally eliminate siloed data across development teams and create a new standard for portfolio management.”
Okner founded SiteRise because he felt that local or cloud spreadsheets were not built to efficiently communicate redevelopment timelines. Its dashboard is customized with reporting categories such as RFIs, change orders, and punch lists.
“When you have a unified system in place, it gives your whole team confidence,” noted Okner. “One hundred percent of retailers say every department is siloed. With SiteRise, if the architect makes some changes in the design, everyone knows immediately that a change has been made. If you’re building out a gym space and the standard number of treadmills won’t fit in it, purchasing is immediately made aware of it.”
taken down and stored in their closets for good.
“We came into this industry not really knowing what retail real estate was,” said Ethan Chernofsky, Placer.ai’s senior VP of marketing. “But we got lucky with a few first customers and found that the industry was very receptive to new ideas.”
Those first few customers have burgeoned into 4,000. After the pandemic subsided, Chernofsky observed that retailers and developers began to steer clear of their hunches and rely on data-backed strategies moving forward.
“This sector is so unique because we have an ongoing conversation with customers that allows us to develop things that they really need,” Chernofsky said. “They’ll ask what do we need to build and where? How can we execute it all? In what markets can we do better than we’re doing? There’s a joy in their commitment. Conversations happen openly.
“As for us,” he added, “we strive to retain the humility to understand what we don’t know in order to stay on the game.”
Keeping track of budget updates makes buildouts complex, so SiteRise includes a budgeting tool that allows changes to be noted by headquarters and all on the construction teams.
“In traditional lease management, if there’s a change, I’m marking it up with my pen,” Okner said. “With SiteRise, you can do that in the tool natively. If you’re the boss and want to see how a project’s tracking, everything you need to know lives in there.”
SiteRise’s Dillon Okner
Combating Return Fraud
AI can flag unusual returns behavior
By Michael Jaszczyk
Return fraud is becoming a bigger issue for retailers, and they are now adjusting their strategies to protect their stores. Many major retailers have already put strict return policies in place to mitigate risk.
But if retailers are focused on reducing return fraud, will they forget about the customer experience? The short answer is no, especially if they add AI into the equation.
AI-powered technology can actually help retailers ensure they find the right balance between the customer experience and protecting stores — it fills in the gap between the two. The technology can promote that balance in two ways: making the return process quick and efficient and freeing up associate time.
Shoppers want nothing more than a quick experience. When a customer walks into a physical retail store specifically to make a return, they often aren’t looking to browse the aisles and add items to a shopping cart. They merely want to check a box off their to-do list. When the trip is held up by an unnecessarily difficult return process, customer satisfaction will certainly take a hit.
When AI is working behind the scenes, the technology can enforce policies and flag unusual behavior so that store associates do not need to spend time making their own assessments, holding customers up in the process.
For example, AI can automatically enforce the return policy that a retailer sets. The employee only needs to scan the receipt and the system can do the rest, automatically flagging a situation as questionable and triggering the need for a managerial override. What’s more, AI can provide the associate with the exact reason for the violation, allowing them to clearly communicate the reasoning with the customer.
Automatic validation makes the return process quick and efficient and enables clear communication. Now, the retailer can successfully prioritize both the protection of its stores and the customer experience.
With its ability to automate and speed up return policy enforcement, AI is also ensuring that store associates are available to provide excellent customer service across the floor and beyond. This is an added layer of efficiency in that even shoppers who are not making a return can be assisted by store employees.
Take, for example, when a clerk trying to self-assess whether or not a return should be accepted and they flag down their manager to help. The situation is now taking time away from two valuable store associates who could instead be on the floor answering shopper questions or up-selling and cross-selling products.
When AI is used to automatically track and flag unusual behavior, both the clerk’s and the manager’s time is freed up. AI can even help alert the clerk that a particular customer has tried to return a different item every day for the past week. Not only that, but it can recommend to the clerk a specific action, removing the need for unnecessary manager intervention.
Customers should not be casualties of a retailer’s efforts to fight return fraud. And with AI, they don’t have to be. Return fraud prevention solutions can help keep the return process effortless and intuitive, freeing up associates to provide excellent customer service while protecting the store in the background. Looking ahead, protecting stores and prioritizing customers finally do not have to be mutually exclusive.
Michael Jaszczyk is CEO of GK Soflware.
Retail Returns: A costly problem
By Marianne Wilson
Total returns for the retail industry amounted to $685billion worth of merchandise in 2024, representing13.21% of total retail sales ($5.19 trillion), according tothe annual “2024 Consumer Returns in the RetailIndustry” report from Appriss Retail in collaborationwith Deloitte. The report revealed that fraudulent returns and claimsresulted in a $103 billion loss for retailers in 2024, with15.14% (up from 13.7% in 2023) of all returns deemedfraudulent (meaning a customer attempted to return anitem to a retailer for a refund knowing that the item didnot qualify for a refund according to the store’s policy.)
Wardrobing (the act of consumers buying an item, usingthe merchandise and then returning it) topped the list (at60%) of the most common types of return fraud andabuse retailers encountered in 2024, followed by
• Fraudulent or stolen tender (gift card fraud:) 55%
• Return of shoplifted merchandise: 48%;
• Counterfeit receipts/e-receipts: 48%;
• Bracketing (buying multiple items, returning some):47%; and Employee return fraud or collusion: 39%.
As retailers implement policies to address this issue[returns], they should avoid negatively affecting customerloyalty and retention,” advised Kevin Mahoney, managingdirector, retail, Deloitte Consulting LLP. “Effective policiesshould reduce losses for the retailer while minimallyimpacting the customer experience.”
Every Tuesday
Spring Cleaning: Freshen Up Your Enterprise Tech
If it feels like every day in your retail enterprise is a repeat of your last, it may be time to upgrade some approaches.
Spring is a time of rejuvenation. This applies to your technology enterprise as much as anywhere else. In honor of the coming lengthening days and, hopefully, warming temperatures, let’s look at three solutions retailers can implement to keep their IT environment fresh.
Cloud
Solutions supported by on-premise servers come with inherent limitations. Upgrades and customizations need to be performed manually, and possibly quite frequently, depending on factors such as systems age and programming.
Performance is also static, with hard limitations that cannot easily be scaled to meet changes in demand. This can all lead to monotonous results and regular modifications that make the days blur together for staff that use and maintain on-premise solutions.
Cloud computing can be an effective antidote to this type of technology rut. Cloud systems can be implemented with minimal effort, disruption or customization and instantly updated without any active measures by the retailer.
In addition, cloud solutions are inherently flexible and scalable. This means retailers can increase or decrease data storage, processing capabilities and other performance aspects as needed — so one day to the next can be very different depending on what situations arise.
Mobile
A lot of typically dull and repetitive aspects of day-to-day retailing can be streamlined using mobile technology. In the store, associates can break up what can seem like endless checkout lines using mobile POS devices — or customers can even check themselves out with mobile devices and apps.
Mobile devices and apps can also provide employees and customers with immediate access to information such as inventory, product specs and where items are located in the store.
Mobile apps can also let consumers shop anywhere they are, eliminating not only the need to perform the routine task of visiting a store but freeing them to shop beyond the confines of a home or office laptop or PC.
In addition, mobile-equipped field associates can greatly reduce the time and effort required to perform tasks such as tracking and tracing inventory and monitoring corporate assets.
Localization
Retailers need to remain vigilant against running into winter doldrums-style monotony in their merchandising and assortment strategies. Especially for retailers that operate across a wide geographic range, not customizing the products they stock and promote can create a bland, generic experience shoppers will not want to repeat.
Consider the data from Jumpmind and RSR Research, which reveals that 46% of consumers think it’s very important that their favorite retailer makes offers based on what they actually want to buy.
Technologies such as machine learning algorithms and AI-based data mining solutions can collect and analyze data specific to local markets. By using these technologies, retailers can determine the specific products that meet the needs of local customers.
Dan Berthiaume dberthiaume@chainstoreage.com
Supply Chain Automation
AI is helping to revolutionize supply chain operations
By Dan Berthiaume
The global supply chain has recovered from peak disruption, but it still does not function as smoothly as it did pre-2020. It also remains prone to shocks from ongoing global instability and climate events.
Many retailers are trying to overcome continuing disruption by automating supply chain facilities. Three Tier I chains — Amazon, Best Buy and Walmart — are following this strategy in different ways:
Amazon’s Next-Gen Fulfillment Center
Amazon is combining multiple leading-edge robotics and artificial intelligence technologies in a single supply chain facility.
The online giant is operating the new five-story, 3-million-plus-sq.-ft. facility (equivalent to 55 football fields), one of its largest sites, in Shreveport, La. It will employ 2,500 employees once it’s fully ramped up.
For the first time, Amazon has introduced automated technology solutions in all key production areas at the site, with human employees working alongside its robotic systems seamlessly in a way that wasn’t previously possible.
The facility includes Sequoia, a multilevel containerized inventory system designed to make it faster and safer for employees to store and pick goods. In the facility, Sequoia can hold more than 30 million items.
The Sequoia system coordinates the efforts of thousands of mobile robots and a suite of robotic arms to bring items to employees at ergonomic workstations, where they can do all their work between mid-thigh and mid-chest. Once customer orders are picked, a packaging automation system optimizes the packaging process. It does this while also replacing plastic materials with paper solutions that are curbside recyclable. As inventory and packages move
through the facility, Amazon’s AI-equipped Cardinal, Robin and Sparrow robotic arms sort, stack and consolidate millions of items and customer orders. The latest version of Sparrow can now handle over 200 million unique products of all different shapes, sizes and weights using advanced computer vision and AI systems.
In addition, Amazon’s Proteus fully autonomous mobile robot navigates carts of packages to the outbound dock so they can be loaded into trucks while safely moving around employees in open spaces.
Amazon estimates its next-generation fulfillment centers and sites with advanced robotics will require 30% more employees. Within the sites, the company said it reduced fulfillment processing times by up to 25% and enhanced shipping accuracy.
In addition, it increased the number of items available for same-day and nextday delivery.
During peak delivery seasons, Amazon is aiming to drive a 25% improvement in its cost to serve at the next-generation facility.
Best Buy Automates Forklifts
To further improve accuracy and reliability of orders as well as productivity and safety in its warehouses, Best Buy has begun implementing autonomous guided vehicles (AGVs) in its Nichols, N.Y. retail distribution center.
Currently, the facility has about 20 automated forklifts that handle nearly half of inbound pallets off delivery trucks. Benefits offered by AGVs include:
ե Increasing warehouse storage capacity by operating in narrower aisles;
ե Enhancing safety and freeing up employees to do more complex, skilled work only humans can do;
ե Expanding hours of operation, which improves the workflow, creates faster delivery times, and allows employees to have more flexible schedules.
Walmart’s Big Supply Chain Robotics Deal
Walmart has chosen artificial intelligence-enabled robotics technology provider Symbotic Inc. to take over its advanced systems and robotics division.
The deal builds on the long-standing partnership between the two companies to equip Walmart’s entire regional distribution center network with robotics and software automation. The new agreement will see Symbotic engage in a development program funded by Walmart to enhance current online pickup and delivery fulfillment systems, as well as to design new systems to help develop an integrated and automated supply chain.
As part of the agreement, Walmart has committed to purchasing and deploying systems for 400 accelerated pickup and delivery centers (APDs) at stores over a multi-year period. Walmart has the option to add additional APDs in the coming years.
Associated with this development program, Walmart will pay Symbotic a total of $520 million, including $230 million at closing.
Amazon’s next-gen fulfillment center includes a multilevel containerized inventory system.
Mobile Innovation Transforms Customer Experience
By Dan Berthiaume
Retailers can leverage innovative technology to improve the customer experience across all touchpoints.
Chain Store Age recently spoke with Katie Riddle, global retail strategist at Verizon Business, about how retailers can leverage leading-edge solutions to enhance both online and in-store shopping while understanding their customers better and targeting them more effectively.
How can retailers optimize the customer experience with in-store tech?
Technology can make the entire customer journey more engaging and seamless. Stores can entice customers to visit with unique experiences, like virtual trunk shows or sneaker drops using holograms.
Larger footprint stores can use wayfinding to help the customer fulfill their lists and offer relevant content at the point of decision. Frictionless checkout can enable the customer to pay for their purchases anywhere in the store and avoid lines at the till.
How can retailers streamline and enhance operations with customer data?
The more we know about the customer, the better we can plan our operations. AI-powered inventory management and predictive analytics will use customer data to drive operational efficiency, ensuring the right products in the right amounts are available at the right time, and reducing costs and waste significantly.
Using video analytics in-store can help determine customer behavior patterns, enabling retailers to create optimal layouts and understand why some items are selling and others aren’t.
How is mobile technology changing retail, both in-store and digitally?
The industry is moving away from “omnichannel retail” and toward “adaptive retail,” which truly has mobility at its
heart. It’s providing seamless experiences wherever and whenever the customer chooses and understanding that customer mobile devices are a persistent second screen in their lives.
Associates can now check people out anywhere in the store with mobile devices and cloud POS. Customers can check themselves out with the same technologies or use their devices to comparison shop or understand item specs and assembly. Mobile tech is everywhere in retail and will only continue to proliferate. What are the biggest retail tech trends you see for 2025?
I see 2025 as a year of transformation for the retail industry, with emerging technologies poised to change the landscape. The Internet of Things (IoT) will enable retailers to create smart stores that offer interactive displays, hyper-personalized content and couponing, wayfinding, digital shelf labels, and real-time inventory tracking.
IoT will reshape the in-store experience, making it more efficient and creating seamless customer journeys. Augmented reality and virtual reality can bridge the gap between online and in-store shopping, creating immersive experiences. Customers can visualize products at home using AR or explore virtual showrooms with VR, enhancing brand engagement and reducing returns. Brands can also use AR to create interactive experiences that drive people into stores.
In addition, artificial intelligence and machine learning will be the driving forces behind retail’s transformation. AI will enable real-time hyper-personalization, offering customers tailored
Charlotte, N.C.-based Rack Room Shoes, which operates more than 520 stores across 36 states, previously distributed communications to stores via email. However, the retailer found that it was challenging to convey any corrections or edits if a corporate directive changed.
In addition, stores lacked a way to structure or organize communications to forecast daily work. To address these issues, Rack Room Shoes implemented Zebra task management software, then integrated mobile hardware with the solution.
Rack Room Shoes says it has realized benefits including:
• Streamlining communications for clearer, more organized task management.
• Achieving 95% task execution completion rate with a 4x increase in tasks.
• Facilitating better customer service by keeping associates on the sales floor.
• Enhancing promotional execution with automated task distribution and verification.
recommendations in the right place at the right time.
Imagine a world where your online store is deeply customized to your preferences or your physical store greets you with personalized promotions as you walk past relevant items. AI-powered inventory management and predictive analytics will optimize operations, ensuring the right products in the right amounts are available at the right time, which can reduce costs significantly.
Katie Riddle, global retail strategist, Verizon Business.
CSA is now accepting nominations for “Retail’s Top Women Awards” program, which is designed to put a spotlight on the achievements of female retail executives in the following categories:
Technology Marketing Supply Chain Finance
The program encompasses all sectors of the retail industry, including department stores, discounters, grocers, specialty stores, convenience stores, DTC brands and more.
Only women who work in a senior executive role for a retail company are eligible for consideration.
All Retail’s Top Women winners will be recognized at a presentation in June.
Deadline for submissions: Wednesday, April 2, 2025
For more information or to submit your nomination(s), visit: chainstoreage.com/nominate-retails-top-women
