MIAMI—Demographic shifts are not only changing the dynamics of residential real estate—they are also changing the dynamics of retail that follows after it.

GlobeSt.com caught up with RKF vice chairman Rob Cohen to get some insights into the shift, showrooming and examples of effective experiential retail in part two of this exclusive interview. You can still read part one: 2017 Retail: Uncertainty and the Amazon Effect.

GlobeSt.com: How will demographic shifts impact retail real estate industry in 2017? And what are the implications?

Cohen: Increasingly we see that Millennials don't drive. They use a ride share service. They don't buy houses in the suburbs: they rent an apartment in the urban heart of cities.

This certainly affects shopping centers in suburban areas. But what matters is not only where Millennials shop, it's also important to note how they shop. They conduct extensive research, read reviews, compare products and prices and are extremely receptive to information and trends on social media.

Retailers must continue to adapt, making sure that their physical stores respond to this lifestyle trend, which represents a lasting shift. More than ever, it's time for brands to study consumers' shopping patterns and keep abreast of the competition.

GlobeSt.com: How rapidly is experiential retail gaining momentum? What do you expect on this front in 2017 and what are the implications?

Cohen: More stores turn to experiential strategies to stay relevant and expand their appeal to consumers, especially Millennials. For example, Tesla opened a retail space in the men's section of a Nordstrom department store in LA; Samsung 837 in the Meatpacking District boasts a virtual reality tunnel, interactive art installations, a mini museum, DJ sets, yoga classes and sweat sessions; Sonos on Greene Street in SoHo features home-like listening rooms; the upcoming Lexus store in the Meatpacking District will include a restaurant by ShakeShack's Danny Meyer.

These brands understand that the consumer can always buy their products online after seeing them in person—a phenomenon called showrooming—and that physical stores must deliver something else. Stores are a way for brands to revive the shopper's emotional connection with the brand and encourage loyalty.

MIAMI—Demographic shifts are not only changing the dynamics of residential real estate—they are also changing the dynamics of retail that follows after it.

GlobeSt.com: How will demographic shifts impact retail real estate industry in 2017? And what are the implications?

Cohen: Increasingly we see that Millennials don't drive. They use a ride share service. They don't buy houses in the suburbs: they rent an apartment in the urban heart of cities.

GlobeSt.com: How rapidly is experiential retail gaining momentum? What do you expect on this front in 2017 and what are the implications?

Instant Insights /

Showrooming a Vital Part of Retail Strategies

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