It’s Not Just Ecommerce Pushing Retail to Evolve

Ecommerce is often faulted as disrupting the retail market, but according to Blake Pomeroy of Koss Real Estate, the underlying technology boom is responsible for the evolution in retail and the emergence of ecommerce. The problem is complex, and to truly adapt, retailers and retail owners must leverage technology to meet cultural changes and consumer needs.

“Blaming ecommerce is just an easy answer to a complex problem,” Pomeroy, leasing director at Koss Real Estate, tells GlobeSt.com. “The bigger underlying factor is really about how technology is changing and improving people’s lives. The general public has a multitude of options available to them 24 hours a day, often in the comfort of their own homes. Retailers and investors who embrace and adapt to the day’s current trends will continue to find success, just as they always have.”

As an example, online retailers are finding a need for brick-and-mortar locations, and physical retailers are creating omnichannel platforms to better capture customers. These are not examples of online shopping but rather technology shifts. “In fact, online-focused vendors are finding that they get a bump from having physical stores,” says Pomeroy. “Those who are unwilling to diversify and meet new challenges often look for the most obvious scapegoat.”

Technology has also democratized retail and shopping, highlighting areas of oversaturation in the market and pricing gaps. Although investors should always be concerned about oversaturation, technology has exacerbated the need for capital to scrutinize retail locations. “It’s always wise to take a measured investment approach, tracking traffic patterns and observing the retail mix in a given area,” says Pomeroy. “At the Malibu Country Mart, we’re highly selective with our retail mix and will actively turn away prospective tenants if they don’t meet the synergistic needs of the center.”

Luckily, the retail industry both online and in brick-and-mortar is quickly adapting to technology shifts. “The industry is finally coming to the realization that it needs to invest in the overall retail experience in order to win back its customers,” says Pomeroy. “By placemaking—that is, providing guests a comfortable, welcoming environment with activities for kids and families—people will feel good about the dollars they’re spending. Cultivating that sense of place is one of the most successful things we’ve done at the Malibu Country Mart to stay ahead of the pace of change.”