The retail market is changing rapidly. There is a trend toward more experiential retail and away from the standard mall format. With this change, it might seem like an odd time to start a new retail advisory firm—but if you ask Michael J. Cortazzo, it is the perfect time. He has launched Crossroads Retail Advisors to guide clients through the new retail investment, development and leasing markets, and in the process, he is redefining retail brokerage. We sat down with Cortazzo for an exclusive interview to talk about the new firm and where he sees the future of retail.

GlobeSt.com: What was the impetus to launch Crossroads Retail Advisors?

Michael J. Cortazzo: The idea to create Crossroads Retail Advisors actually came from my work on a high-profile project in New York City.  I was retained by a $3 billion retailer to help them open their recently acquired menswear concept, Todd Snyder. The concept had a great following and a strong online business, but needed to create a brick-and-mortar presence to really achieve the level of success it was looking for. I was tasked with not only opening this inaugural flagship location, but with making sure it was different than anything else that was already being done in New York City—a tall order, to say the least.

Working directly with Todd and the retailer, we established a sophisticated storefront near Madison Square Park with unique furnishings and amazing one-on-one customer service. The experience extended beyond the purchase of a suit, however. Todd Snyder's flagship incorporates a full-service experience with a bar and café, barbershop, custom eyewear purveyor and a tailor shop all under one roof. The project was the perfect mix of enjoyable, challenging and educational. It ended up providing an 'experience' for me as well, in addition to the customers, as it highlighted the advantages of having all of the real estate, store operations, customer service and project management functions under one roof.

Todd Snyder's flagship was literally the definition of 'experiential' retail.

GlobeSt.com: Why was this a good time in the market to launch this business?

Cortazzo: I believe the retail industry as a whole is standing at the pinnacle between the brick-and-mortar storefronts of the past and the future innovations technology, ecommerce and omnichannel solutions will provide our customers. This made it the perfect time to launch Crossroads Retail Advisors because we handle all aspects of brick-and-mortar real estate, store operations and technology integration. We all know the old ways of retail don't work anymore – but that pristine customer service will never go out of fashion. That's what Crossroads does: it marries the values instilled by successful retailers of generations' past with the forward-looking solutions today's shopping center owners, developers, investors and tenants need to ensure their viability now and down the road.

There is a huge amount of positive change occurring. The demise of traditional anchor tenants and other operators has provided an extraordinary opportunity to re-invent the retail wheel as we know it.  Landlords and developers now have the chance to introduce new, exciting and experiential,  food, retail, fitness, entertainment, essential services and even residential components to their centers.  Many are courting the best local and regional restaurants, unique, artisanal retailers and ecommerce-only concepts. Some are even doing short-term, pop-up and temporary lease deals, which were unheard of only a couple of years ago. This can be tricky waters to navigate if these concepts and business plans are new to you, which is why Crossroads is here to provide full-service advisory at the crucial time in retail.

GlobeSt.com: The retail market has undergone massive changes in recent years as a result of e-commerce. What is your approach to the business today, and how are you advising your clients?

Cortazzo: Crossroads Retail Advisors and its partners are uniquely positioned to assist both tenants and landlords in this new and exciting retail environment. Crossroads handles the entire process, from concept-to-commerce, which allows tenants to focus on what they do best. We don't want to see innovators and creators take time, energy and resources away from their core business to seek out individual brokers, attorneys, suppliers, architects, contractors, point of sale (POS) providers, payment processors, third-party logistics (3PL) providers, marketing companies, etc.  Crossroads can guide new tenants through the entire construction and operational phases of an opening to ensure that agreed upon commencement dates are met and rent payments commence. The “on time and under budget” approach tends to make both landlords and tenants very happy.

We also have to acknowledge that our industry's changing. Not everyone has recognized, internalized and embraced these changes at the same pace. The approach at Crossroads is simple. We believe that the foundations and hallmarks of retail and brand building still apply. We are extremely customer focused: great location, great product at a great value delivered with great service without waiting in line…and making a great profit in the process. We also know, however, that today's shopping center owners and retail operators must take advantage of and integrate the technology, communication and marketing tools that the customers appreciate.  There is no reason to fear ecommerce if you execute sound, customer-focused business practices and continue to innovate and evolve. Our goal is to guide our clients through that process and set them apart from their competition by building a strong brand identity with a dedicated, loyal following.

GlobeSt.com: Where do you see the most opportunities in retail, either in terms of asset classes or geographic locations?

Cortazzo: I already see the trend moving away from a traditional mall configuration and into mixed-use developments that include grocers and a mix of unique local and regional sit-down and fast-casual restaurants and /or food halls. This is in addition to a well-managed and assorted retail component, cool and fun entertainment, office, residential and essential services. This type of environment is rounded out by a well-landscaped, greenspace environment with plenty of casual seating and free Wi-Fi. These developments are closer to or even integrated into the community, versus a 30-minute freeway ride away.

Ecommerce retailers are also a huge opportunity for the future of retail. This not only includes ones that offer a physical product but also ones that offer services.  Studies have shown that, after opening a physical storefront, online sales increase by 15% to 35% or more in the metro where the brick-and-mortar location debuted.  Current hot categories are fun, fitness and food, in addition to dollar concepts and “treasure hunt” retailers like TJ Maxx that are rapidly expanding.

GlobeSt.com: What can we expect from the firm, and what are your initial goals for the business?

Cortazzo: Our clients can expect expert, unbiased, customer- and tenant-focused guidance based on more than 100 years of cumulative retail experience in all areas of retail operations, real estate, customer service and project management.  We have established relationships with all of the major landlords and developers, along with intimate knowledge of markets and the latest retail technologies. Crossroads takes a concierge approach to getting projects delivered on time and under budget. Our goal is simple: To be the number one service provider to the retail industry in the US, period.