NEW YORK CITY—Providing a futuristic view of what lies ahead—and possibly striking fear into the heart of retail real estate professionals—Gene Spiegelman, Cushman & Wakefield's newly appointed head of retail real estate for North America, recently shared some insights on where the industry is going.
“The trends we talk about today may not be the trends we talk about tomorrow,” he noted. “They weren't the trends yesterday.”
Millenials are a key audience for retailers to seek, Spiegelman said. “That generation is going to represent 30% of annual retail spend by 2020. It's going to drive the retail trends of the future. There will also be a greater influence from the Hispanic and Asian-American populations,” the fastest growing ethnic groups in the country.
All of these groups, he cautioned, “want the omni-channel experience and they want great customer service.”
As for ecommerce, property owners and developers need not fear it. “It represents just 8% of the $270 billion retail industry in the US. However it is growing to about 12%, and more in other countries. But as that shifts, the impact of brick and mortar stores grow [in terms of brand identity.]”
Also on the horizon, Spiegelman added, is “the rise of the mobile device. “They're great …and very scary,” he said, noting that 20% of ecommerce sales are conducted on these platforms. Technology is sure to drive future transactions with tools like beacons implanted in indoor environments.
“Macy's, Urban Outfitters, Apple and other stores are using it this season, it tells customers that an item is on sale as they walk by it. In addition, urban Wi-Fi kiosks are going to be very important to retail because they will emphasize the use of the mobile device,” he asserted.
Newer strategies include virtual windows, mobile wallets and same day delivery service, Spiegelman noted. But in-person stores won't be going away any time soon.
“Brick-and-mortar stores will survive in high-street retail," he said. There's room to run.”
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