Professional Retail Store Maintenance 2018 Trends Report - 13

BASED UPON RESEARCH BY THE NPD GROUP,
81 PERCENT OF MILLENNIAL DOLLARS ARE
SPENT IN STORES - NOT ONLINE.

and others. Some malls have even been
used for community colleges, churches,
offices, self-storage and even parks.
Life Time Fitness recently took over
120,000 square feet of vacant space in the
61-year-old, Southdale Center in Edina,
MN, and created a three-story fitness
complex. Simon Properties is creating
a community epicenter in the mall by
converting it into a healthy lifestyle village
where people will not only shop, but live
work, play and be entertained.
Driving this evolution are two primary
factors: convenience and the experience.
Millennials want to have the convenience
of coming to one location where they can
dine with friends in a nice restaurant, go to
movie, work out and experience products
they may buy then or later online.
A study by Ebeltoft Group confirms that
today's retailers must tap into the customer's
points of engagement if they want to
survive. Stores must allow customers to
learn, be entertained, create, test or design
products to meet specific needs and even
experiment. The retail experience must now
top the thrill of the purchase.
Both Apple and Samsung have
capitalized on this trend. Apple stores are
highly experiential and Samsung created
Samsung 857 in Manhattan - a store that
does not sell any products. It is purely a
location to experience Samsung products.
Other retailers are doing the same.

CLICKS TO BRICKS
This experiential drive has enticed
successful online retailers to add clicks
to bricks. They recognize the importance
of the customer experience in long-term,
successful retail. According to HCP
Associates, a few of the virtual retailers
going physical include:

* Amazon - Founded 1994 - opened
its first physical bookstore 20 years
after it began selling books online. It
now plans to open 2,000 Amazon-Go
convenience stores.
* Rent the Runway - Founded 2009,
fashion rental; to let customers try
on clothes before buying, Rent the
Runway opened its first physical
storefront in Manhattan in August
2014. Today, it operates five
storefronts.
* Bonobos - Founded 2007, men's
fashion; opened several fitting rooms
in their New York office, and their
popularity pushed the company to
open full-service physical stores
starting in Boston in 2011. Bonobos
stores operate like showrooms -
customers can try on the clothes
with help from stylists, but any items
they want to buy get shipped directly
to their homes from centralized
warehouses. The model helps
Bonobos save on inventory costs and
real estate. It currently operates more
than 24 storefronts, with plans to open
100 by 2020.
* Warby Parker - Founded 2010,
fashionable eyewear; opened its first
physical storefront in Manhattan in
April, 2013, and by 2014, operated
eight stores that it announced were
collectively profitable, with average
sales per square foot of $3,000. That
metric would rank the brand higher
than nearly all other retailers except
Apple. Currently has 40 stores with
substantial growth aspirations.

POP-UP RETAIL TEST
Several online retailers are testing the
physical waters by using pop-up shops.

These temporary retail outlets can be set
up quickly, in inexpensive, often vacated
space and can change designs almost
overnight. Online retailers often use
pop-ups to test physical store concepts at
a dramatically lower cost.
Louis Vuitton, a legacy, proven luxury
retailer, used 3D printing to create a
pop-up shop in Australia. The domed
structure had 48 sections that weighed
in at almost 2,000 pounds, the shop was
printed in two weeks and assembled in
three days.

THE FOREIGN INVASION
In addition to the transformation of
retail, there is a foreign retail invasion
hitting U.S. shores. Aldi, an upstart
German discount grocery chain plans to
open 900 stores in the U.S. in the next
five years, while Lidl, another German
grocer has plans to open 100 stores
by the Summer of 2018. The new Aldi
stores will encompass around 12,000
square feet, while the Lidl stores cover
20,000 square feet. Both are discount
grocers with loyal followings that feature
exclusive brands.
Other foreign-based retailers like
Uniglo, H&M and Primark are also
impacting the U.S. market with
unique offerings, smaller stores and
personalized, experiential shopping
venues.
The rapid-fire evolution of retail will
require FMs to expand their skill sets, be
willing to embrace change and adapt to
smaller, more customized, ever-changing
store designs, in different types of
locations, while continuing to manage
basic FM functions in the most efficient
manner possible to maintain the brand's
standards. l
www.prsm.com I 2018 TRENDS REPORT I 13


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Table of Contents for the Digital Edition of Professional Retail Store Maintenance 2018 Trends Report

What’s Driving Retail Trends – Retail Transitions From Ecommerce to Newcommerce
The Skills Gap Crisis
A New Era of Retail
Making the Mark
FM Tech Trends – Tapping Into Tomorrow Today
Direct to the Customer – Retailers Streamline Fulfillment
Contributors
Advertisers’ Index
Professional Retail Store Maintenance 2018 Trends Report - Intro
Professional Retail Store Maintenance 2018 Trends Report - cover1
Professional Retail Store Maintenance 2018 Trends Report - cover2
Professional Retail Store Maintenance 2018 Trends Report - 3
Professional Retail Store Maintenance 2018 Trends Report - 4
Professional Retail Store Maintenance 2018 Trends Report - 5
Professional Retail Store Maintenance 2018 Trends Report - 6
Professional Retail Store Maintenance 2018 Trends Report - What’s Driving Retail Trends – Retail Transitions From Ecommerce to Newcommerce
Professional Retail Store Maintenance 2018 Trends Report - The Skills Gap Crisis
Professional Retail Store Maintenance 2018 Trends Report - 9
Professional Retail Store Maintenance 2018 Trends Report - 10
Professional Retail Store Maintenance 2018 Trends Report - 11
Professional Retail Store Maintenance 2018 Trends Report - A New Era of Retail
Professional Retail Store Maintenance 2018 Trends Report - 13
Professional Retail Store Maintenance 2018 Trends Report - 14
Professional Retail Store Maintenance 2018 Trends Report - 15
Professional Retail Store Maintenance 2018 Trends Report - Making the Mark
Professional Retail Store Maintenance 2018 Trends Report - 17
Professional Retail Store Maintenance 2018 Trends Report - 18
Professional Retail Store Maintenance 2018 Trends Report - 19
Professional Retail Store Maintenance 2018 Trends Report - FM Tech Trends – Tapping Into Tomorrow Today
Professional Retail Store Maintenance 2018 Trends Report - 21
Professional Retail Store Maintenance 2018 Trends Report - Direct to the Customer – Retailers Streamline Fulfillment
Professional Retail Store Maintenance 2018 Trends Report - 23
Professional Retail Store Maintenance 2018 Trends Report - 24
Professional Retail Store Maintenance 2018 Trends Report - Contributors
Professional Retail Store Maintenance 2018 Trends Report - Advertisers’ Index
Professional Retail Store Maintenance 2018 Trends Report - cover3
Professional Retail Store Maintenance 2018 Trends Report - cover4
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