Imagine for a moment that you were living there instead of going to the shopping mall.
Imagine that the mall was not just a piece of real estate with many national retailers tenants selling largely the same merchandise. Instead, it was transformed into a highly distinctive mixed-use space with the sole purpose of catering to you and other people like you. It is surrounded by commercial offerings that reflect your wants, needs and values.
Say goodbye to the shopping center of the past and welcome to the “retaildential compound”, just one of many consumer engagement areas of future. This commercial offering is designed to improve your quality of life as well as the fortunes the retail realty industry, currently in a state of flux between a 21st-century revival and near collapse.
The baby boom was the main driver of the growth in malls and shopping centres. When Edina’s Southdale Center opened in Minnesota on October 8, 1956, the oldest boomer was only 10. The idea of central buying spaces was loved by boomers’ parents. This led to the rapid growth of U.S. shopping centers that outpaced the population for much of the 1960s, 1970s.
However, things have changed.
Similar story: Pruning is the Right Thing to Do for Our Overgrown Retail Landscape.
The oldest boomers will be 85 years old by 2030 and the youngest will be 65. They will compete for attention with five generations: the Silent Generation (Gen X), millennials, Gen Z and now alphas. The youngest boomers will be five years of age in 2030. This will force mall operators to develop designs that are compatible with specific cohorts or create retail offerings that cross multiple cohorts.
We see retaildential spaces as curated “life stage centers,” offering demographic-specific and appropriate sets of retail, restaurants, entertainment and services to everyone from young urban hipsters and single-and-staying-that-way 40-somethings to seniors and other such enclaves.
Aeon Co., an American developer, has already begun to repurpose malls in Japan to meet the needs of an aging populace. These spaces are pioneer retaildential. Senior retaildential spaces will include housing, medical services and pharmacies, exercise equipment, lawyers specializing on geriatric law and accountants specializing estate planning. There will also be a wide range of entertainment and shopping choices.
For young urban hipsters, Retaildential spaces might include high-end technology shops, luxury furniture shops, microbreweries and bars, gourmet food stores and meet-and-greet spaces.
A retaildential center, which is strategically located near large numbers of people, might offer integrated living, shopping, entertainment experiences, as well as easy accessibility to essentials such as food and dry cleaning services. These types of centers will become more popular as urban cores repopulate.
What does this retaildential consumer engagement space have in common? These spaces will have deep customer understanding, thanks to sophisticated data collection systems and processing systems. Technology will serve as the center’s invisible backbone. Monitoring health data for seniors, or possibly the musical preferences of Gen Z urban residents in urban centers.
- Magento Pos
- Shopify Pos
- Bigcommerce Pos
- Woocommerce Pos
- Netsuite pos
- Bigcommerce automation
- Shopify automation
All transaction activity will be driven by technology, including capturing trends and selling to ensure intra-center deliveries arrive on schedule and spotting trends before they become a problem. These environments will be smart, regardless of clientele. They can learn from and reflect real-time learning.
One idea to repurpose underperforming commercial properties is retailtainment. While we focused on one space for consumer engagement in this article, a wide range of formats is examined in our full report The Future of Shopping Centers.
Retail Sales in the United States Increased 0.6% by March
After three consecutive monthly drops, U.S. retail sales saw a rebound in March as consumers increased their purchases of large-ticket items and motor vehicles. This suggests that consumer spending is picking up momentum for the second quarter. On Monday, the Commerce Department reported that retail sales rose 0.6 percent in March after a 0.1 percent drop in February. The January data has been revised to reflect a fall of 0.2 percent rather than the reported 0.1% drop. Retail sales increased by 4.5 percent in March compared to a year earlier. Retail sales increased by 0.4% last month, after remaining unchanged in February. These core retail sales are closely related to the consumer spending portion of gross domestic product.
Total Retail’s Take: Positive close to the first quarter by retailers. Economists predict a strong 2018, driven by rising consumer confidence and job growth. Retailers have plenty of opportunities to keep the momentum going into spring, with Mother’s Day and Father’s Day as well as graduation and wedding seasons. It will be interesting to see how the weather affects brick-and mortar sales as winter continues into April in many areas of the country.