Trends in Urban Retail
Trends in Urban Retail Philadelphia April 22, 2015 Big Trends Consolidation Paring the Field Penny’s Sears Target Gone: Linens & Things, Circuit City… Multi-Format All sizes and all shapes From 15,000 sq.ft. 250,00 sq. ft. Mixed-Use Walmart In cities Below residential Without surface parking Serving New Markets OMNI-CHANNEL SHOPPING TODAY’S RETAIL REQUIREMENT COMBINATION CATALOG IN STORE ON LINE ON SMART PHONE The Shopping Journey Research Test & Trial Purchase Fulfillment Return 90% of shoppers engage the physical store somewhere along the shopping journey Source: AT Kearney report: “ On Solid Ground” The Competition…… Amazon Zappo’s Malls are changing too 1000-1200 malls in the US “A” Malls: strong, regional leaders: 25% “B” Malls: less strong but stable “C” & “D” malls, getting weaker and generally will be demolished or converted to other uses Overbuilt or Under-demolished? Demographic Barbells Gen Y and the Boomers are the large age cohorts in America Gen Y LOVES to shop in all formats, but: Has limited disposable income Less car ownership Spends more on entertainment, food than goods Boomers are down-sizing, de-accessioning, more car oriented, retirement worried New Realities in Retail “Clicks” On-line and “bricks” have integrated fully retailers opening in- place stores Competing on ? Price? Service? Convenience? Inventory? Experience? What does it mean for retail real estate? Little total retail sales growth over past 10 years On-line retail will continue to grow Retailers will close stores and diminish the total number of outlets they have, choosing only the “best” locations Retail moving to districts, mixed-use (horizontal and vertical) and away from stand-alone projects UPPING YOUR GAME Before East Liberty, Pittsburgh East Liberty, Pittsburgh Companies Move Back Downtown Amazon Sara Lee Blue Cross, Blue Shield Pinnacle Airlines Quicken Loans Zurich Financial Services Gensler Zappos Twitter Living Social Devon Energy Facebook Companies Seek • New Work Force • Amenity Rich Locations • Access/Connectivity • Result: New neighborhoods • Shuffling the A List/Location Walkability…Amenities…PLACE Target – Minneapolis, MN Amazon is moving 7000 employees into downtown Seattle They will move into 9 new buildings and 2 historic renovations, all in a mixed use neighborhood fully accessible Developer’s Role Visioning Partnering Risk sharing Re-imagining Food, food, food Downtown Boise or ??? All the ingredients Great building stock Great, diverse restaurants and food offerings Increasing housing In the MIX Housing City as living room Amenities Common spaces Storage Pets Diversity of renters In the MIX: Retail Mixed everything Change Compete on Service Price Selection Experience Convenience Rooftops FOLLOWING retail ULI Resources Retail in Underserved Communities Stay Tuned New Gen Y Housing Report: What We Want and Where We Want It America Creative in 2015 survey Finance in Small and Medium Sized Communities
© Copyright 2024