Retail, Through the Lens of Accelerating Technologies
Panelists here at ICSC RECon agree that the extraordinary speed of advancement in technology will disrupt all sectors of retail real estate but note that those to embrace the revolution will prosper.
LAS VEGAS—The death of retail is exaggerated, a phrase that many here at ICSC RECon have noted in the past few days, but on the other hand, according to Jerry Storch, CEO of Storch Advisors, the concept that things “will be fine” is also a bit too extreme.
Storch joined other c-suite industry experts here on Monday in a technology panel about how operators are embracing the tech revolution, whether through augmented or virtual reality, robotization, rapid collection, massive data, or otherwise and say that those that embrace it won’t just succeed—they’ll prosper.
When moderator Jeffrey Newman, chairman of the real estate department at Sills Cummis & Gross PC, asked about what changes are most impacting tech at the moment for the retail sector, panelist Deborah Weinsewig, CEO and founder of Coresight research, said it is robotics and artificial intelligence.
According to Weinsewig, the physical store is a product of the future. “In store experience is critical, but it has to be an experience like no other. Think Starbucks store in Shanghai, for example. That store comes to life. If we can deliver that, and bring life to a store, that is the future of retail.”
Landlords and tenants have to come together and think differently to make what they do a seamless experience for the customer, Weinsewig adds. “It needs to be frictionless for the consumer.”
According to Storch, the pressure is enormous right now and the mass extermination will continue. “The winners will be those that differentiate themselves and that offer value. For real estate, differentiation and value are key. Too many people did the same thing, and there has to also be scale to succeed. There has to be because the world cannot be inefficient.”
He also adds that it isn’t a good time to deleverage noting that “It will destroy you in an internet era. The internet is incredibly expensive to do it right and to tie it to the stores. Especially when up against Amazon.”
Next up was William Taubman, ICSC past chairman and trustee CO at Taubman Centers, who talked a bit about how the consumer has changed. “There has always been evolution, but the difference is the speed at which technology has changed. The virtual and the real are still divided and in the world to come and in the future, they will fuse better.”
Outside of the panel, GlobeSt.com also caught up with attendee Anthony Buono, CBRE global head of retail. According to Buono, “dealmakers of the future that know how to create great consumer experiences paired with science and data will be the market’s king makers. Retailers and investors will flock to these experts because of the extraordinary value they create. The art and science of creating compelling consumer experiences is a significant focus of discussion here at RECon.”
Keep checking back with GlobeSt.com for more from experts in the next few days as we fully cover the RECon 2018 event, with thoughts not only from attendees and panelists, but coverage of sessions, parties and more. And check out some related stories below.
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