May 24, 2017 by Webmaster Webmaster

Creative Disruption or Retail Apocalypse: Tectonic Changes to the Retail Landscape

This post is a recap of Cindi Kato’s retail landscape panel at the Urban Land Institute’s Spring Meeting.

The impact of online shopping on customer expectations has created a unique challenge for retailers and mall developers. We are currently seeing diverse new digital platforms entering the lives of mall developers, retailers, brands and customers at an exponential rate. While many may see this as a “retail apocalypse,” the major shifts we’ve experienced recently act as creative disruption—a catalyst for change that encourages us, as designers, to design exciting new retail environments.

Earlier this month, I moderated a panel about exactly these changes at the Urban Land Institute Spring Meeting in Seattle. I was joined by Dawn Clark of Nordstrom and Peter Huddle of Westfield America, Inc. to discuss synergies between bricks-and-clicks and omnichannel sales from both the retailer’s and the owner’s perspectives.

Below are 4 takeaways from our discussion:

Don’t let your customers get hungry.

Malls and stores must offer unique experiences to survive and, to be truly successful, retail must offer entertainment, leisure and food in addition to shopping. Foodie culture has driven many changes in the retail and entertainment industry. Nordstrom uses Escalator Bar, Café Nordstrom and Nordstrom Grill to both satiate their customers and encourage them to spend a longer time in the store. They also recently introduced the gourmet candy boutique Sugarfina to several of their stores. Westfield is finding great success with upscale restaurants such as Din Tai Fung and Eataly, the largest Italian marketplace in the world.

Pop up and rock out.

Clark and Huddle said that they aim to attract millennials to their stores by creating a unique experience that customers cannot get online. This means providing one-of-a-kind merchandise and events. Nordstrom is distinguishing itself with pop-in shops showcasing brands such as Warby Parker, K Beauty and Vans, amongst others. Westfield is hosting movie premieres, fashion shows and large-scale concerts with world-renowned music stars including Rhianna, Taylor Swift and Lady Gaga, and they also provide very short-term leases for pop-ups like the Kylie Jenner Pop-Up at Westfield Topanga, which drew thousands and provided a huge buzz on social media.

It shouldn’t be rocket science.

During the panel, Clark and Huddle discussed exciting new technology that they are experimenting with in their stores and malls. These innovations, including interactive directories, beacons, smart parking and mobile point-of-sales, provide a frictionless customer experience.

Just listen.

But the biggest takeaway from the panel is that there’s no magic bullet to create a successful retail environment. Instead, designers and retailers must listen to what the customer wants, be forward-thinking technologically and provide a seamless click-to-brick experience, all while creating a go-to destination full of surprise and entertainment.