The Changing World of Consumer Preferences
We can expect this year’s ICSC RECon event to include discussions about how retail is changing in a positive light, say attendees and retail experts we EXCLUSIVELY chatted with in preparation of this weekend’s big event.
Part 2 of 2
In part two of our discussions with attendees for the big upcoming RECon event held this weekend in Las Vegas, Lori Bongiorno, principal and commercial studio director at M+A Architects in Columbus, OH, says that she expects a lot of the discussion to be around how retail is changing, but in a positive light.
“Rather than saying ‘retail is dying,’ people will be talking about how it is morphing to reflect the changing world and consumer preferences with an emphasis on technology and entertainment and incorporating those into malls to make them more experiential,” she tells GlobeSt.com.
Bongiorno is looking forward to seeing colleagues that she has worked with in the past that she hasn’t seen in a while and is also looking forward to checking out the Innovation Exchange, as well…to see what new technologies are available.
Al Williams, executive managing director of Excess Space Retail Services, tells GlobeSt.com that he anticipates this will be one of the busiest RECon’s ever as many retailers are being increasingly proactive implementing long-term strategies regarding their real estate portfolios. “In particular, this optimization process is being undertaken by retailers due to the impact of the internet on bricks and mortar retail. Retailers want to make sure they are in the correct locations, have the most efficient sized stores and most significantly, they are focused on maintaining and reducing real estate occupancy costs. As portfolio optimization has been our sole focus and expertise for over 25 years, we are preparing for a very active 2018 RECon.”
Drilling down to a local market, GlobeSt.com caught up with Reg Javier, deputy executive officer of Workforce & Economic Development, San Bernardino County, who said that they are in an especially unique position. “While many regions are concerned about the vitality of aging retail centers and store closures driven by e-commerce, we are experiencing the opposite effect. Our region is a magnet for young people and many of our communities still need every day retail services and restaurants.”
Javier points out that changing demographics and the retail expectations of young families in the region are providing inspiration for developers to reimagine their retail offerings. “This is driving new development activity at some of our longstanding centers such as Montclair Place, Ontario Mills and Victoria Gardens in Rancho Cucamonga.”
When we caught up with Joel Murphy, CEO of New Market Properties, he said that his firm strategically operates in the grocery sector, which as seen its fair share of disruptors and uncertainty for some time now. “The important thing in the real estate world today is to have a strategy—pick a lane, know it inside and out, and don’t stray from it.” Murphy says that that is how his company has realized success and “positioned ourselves for prudent acquisition activity.”
Murphy anticipates this “specialization” path to be a major topic of conversation at this year’s RECon. “Successful owners/operators in this climate will deploy a thoughtful and intentional strategy. That’s what we’re doing and we’re eager to learn more about how others are approaching growth.”
Murphy adds that “When we mention disruptions, we’re talking, for the most part, about the blending of online/offline shopping experiences and changing shipping and delivery methods. But we’re not ruling out how advances in artificial intelligence, virtual reality and autonomous cars might shape the shopping experience. These are the next steps in the evolution of shopping and we are keeping our eyes open at the show to learn more about how companies plan to implement these strategies.”
As for what Murphy expects from the show/? He says each year RECon is an incredible opportunity to share the firm’s strategy and story. “It is also a time to grow existing relationships and form new ones. Perhaps, most valuable is the chance to receive feedback from our customers (the retailers) face-to-face. In an email driven era, we view this time together as invaluable. RECon also provides a unique opportunity to take a step back and look at the big picture—of the industry and other companies. Information is often the great equalizer, and we view RECon as an opportunity to learn from others.”
Dan Sheridan, partner with Hoffman Strategy Group, also expects an exciting conference this week and will be looking to “identify operators that are focused on total customer experience/service – from online, to in-store, to addressing customer issues/complaints, etc. More than talk but what are they doing and how are they investing their resources in this area. Also, will find and learn about development and/or redevelopment projects that are focused on localization and market specific experiences. How are they doing this?”