Shoppers’ growing preference for variety and value will drive CBRE’s anticipated holiday retail trends for this season, including an even greater proliferation of popup stores, the emergence of “popup warehouses,” an expansion of mobile commerce and strength in discount retailing, according to CBRE’s 2017 U.S. Holiday Trends Guide.
“As e-commerce reshapes modern retailing, blurring the lines between online and in-store activity, retailers and shopping center owners must continue to adapt with fresh approaches,” says Melina Cordero, CBRE’s Head of Retail Research, the Americas. “We anticipate that this season will showcase strategies of reaching customers through multiple selling channels as well as catering to their demand for new concepts and value pricing.”
CBRE identifies four trends shaping this season. Highlights from the report include:
- Short-term retail leases — often called popup shops — have evolved from a trend last season to a full-blown phenomenon this season. Retailers, and now retail-center owners, favor the flexibility and experimentation allowed by short-term leases, and shoppers appreciate the variety of a shifting roster of stores. Several of the largest U.S. mall owners have designated space in their strongest properties for popups.
- eMarketer forecasts that more than a third of online sales this year will occur on phones and tablets. CBRE expects more widespread use by retailers this year of m-commerce tools for handling customer service, mobile marketing and facilitating sales.
- Discount and off-price retailers gained momentum during the Great Recession and have sustained it in the years since with a mix of value pricing and treasure-hunt merchandising. CBRE predicts that the category will take additional marketshare this season, spurring mid-market retailers to discount their prices to compete.
- New services have emerged to provide a popup warehouse model in which demand for short-term industrial space in a given market is matched with suppliers. Early results show higher efficiency and lower costs.
“CBRE has identified these trends by examining public and proprietary data, listening to our clients, and querying our Retail professionals,” says Brandon Famous, CBRE Senior Managing Director of Retail Advisory & Transaction Services and Retail Leader, the Americas. “We see these trends as natural steps for retailers striving to perfect their omnichannel operations for selling across all channels and to enhance consumers’ experiences in each.”